Housing and planning minister Mathew Pennycook announced a number of reforms to right-to-buy, including cutting discounts and increasing the length of the tenancy required before a tenant can qualify for the scheme.
The changes will ‘protect much-needed housing stock’, ‘boost councils’ capacity’ and allow them to ‘once again build social homes at scale’, he said.
Under the new system, discounts will start at 5 per cent of the property value, and rise by 1 per cent for every extra year an individual is a secure tenant up to a maximum of 15 per cent of the property value, or the cash discount cap.
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A resident will now have to be a tenant in the public sector for 10 years, up from three, to qualify for right-to-buy.
The government recently announced a £39 billion housing programme, of which 60 per cent is allocated to social rent homes as part of a push to deliver 300,000 social and affordable homes over 10 years.
The new council housing built under this scheme, as well as any other new builds, will be exempt from right-to-buy for 35 years.
Pennycook said the reforms followed consultations carried out late last year on how to deliver a ‘fairer and more sustainable scheme’.
‘A 35-year exemption is a positive step, giving councils more confidence to invest’
Welcoming the news, a spokesperson for campaign group Architects’ Action for Affordable Housing, said: ‘Reform of right-to-buy was one of our calls in the run- up to last year’s election, so it’s encouraging to see the government recognising the need to protect newly built council homes from immediate loss through [the scheme].
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‘A 35-year exemption is a positive step, giving councils more confidence to invest in long-term, high-quality affordable housing – as is the extension of the qualification period for tenants to 10 years and the reduction in the discounts. However, this must go hand in hand with genuine support for councils to build at scale, and a commitment to reinvest right-to-buy receipts locally.’
They added: ‘Ultimately, we believe all new council homes should remain in public ownership in perpetuity, so we don’t continue to lose more social homes than we create.’
In 2022, a Freedom of Information request to Norwich City Council revealed that the first homes at Mikhail Riches’ 2019 Stirling Prize-winning council housing project were to be sold off under right-to-buy.
Pennycook said that Labour would legislate on when the changes come into force when parliamentary time allows.
Previous changes to right-to-buy last autumn mean that councils are now allowed to keep 100 per cent of receipts, a reform that Pennycook said yesterday would come into effect ‘immediately’.
The minister also announced the launch of the Council Housebuilding Skills & Capacity Programme, which will provide councils with centralised training and guidance to upskill their workforce and help recruit graduates. It will receive £12 million in funding in 2025/26.
A lack of qualified surveyors and inspectors has contributed to many councils struggling to meet housebuilding and planning application targets set by the government, with two councils recently suspending building control services due to resource and staffing issues.