The Right to Buy policy is set to undergo significant changes, potentially excluding more social housing tenants from purchasing their homes. New proposals suggest that tenants would need to have lived in their property for over 10 years to qualify. Additionally, residents of newly built social housing may be permanently excluded from the scheme. Proposed reforms also include reducing discounts for eligible buyers and implementing stricter measures to discourage the resale of purchased homes.

Why Right to Buy Faces Reform

Introduced in 1980, the Right to Buy scheme aimed to empower long-term council tenants by enabling them to purchase their homes, with the promise that every home sold would be replaced by a new one. However, social housing stock has dwindled, exacerbating the housing crisis. Homelessness charity Shelter reports that there are now 1.4 million fewer social housing properties than when the scheme was launched, as successive governments have failed to replace sold or demolished homes.

Critics argue that the scheme, coupled with soaring housing market demands, has deepened the housing crisis. In May, Manchester Mayor Andy Burnham called for the program to be suspended, claiming it contributes to the ongoing shortage of affordable housing.

Proposed Policy Changes

Currently, tenants can apply for Right to Buy after living in a property for three years—a threshold reduced from five years in 2014. Under the new proposals, eligibility would increase to a 10-year minimum residency requirement. Moreover, newly built social housing could be permanently excluded from the scheme to protect future housing stock.

Discounts, which have been progressively increased under Conservative governments, could face significant cuts under the proposed changes. Currently, tenants must repay discounts if they sell their home within five years. Labour’s plan suggests capping discounts between £16,000 and £38,000 based on council location and extending the repayment liability to 10 years.

Another major reform involves allowing councils to reinvest 100% of the proceeds from Right to Buy sales into building or purchasing new social housing, an improvement over the current policy where councils retain only half of the proceeds.

Labour's Vision for Social Housing

Angela Rayner, the Housing Secretary, has made expanding social housing a key priority. She aims to spearhead what she calls "the biggest wave of council housing in a generation." While acknowledging that the proposed amendments may disappoint tenants hoping to purchase their homes, Rayner emphasizes that these reforms are necessary to address the broader housing crisis.

“Too many social homes have been sold off before they can be replaced,” Rayner said. “We cannot fix the crisis without addressing this issue—it’s like trying to fill a bath without the plug in.”

Shelter’s Call for Broader Action

Although Shelter supports reforms to the Right to Buy scheme, CEO Polly Neate stresses the need for additional investment in social housing. “Reforming Right to Buy is vital,” Neate said, “but it must be combined with serious investment in social homes in the Spring Spending Review.”

The Path Forward

As the housing crisis intensifies, these changes could mark a turning point for social housing in the UK. While critics and advocates alike agree on the need for reform, the challenge lies in balancing tenant aspirations with the urgent need to rebuild the nation’s social housing stock.

Source: bbc.co.uk