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Another landlord quits NHF over RTB deal

A Lincolnshire-based housing association is to leave the National Housing Federation (NHF) due to its frustration over the voluntary Right to Buy agreement.

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Lincolnshire Rural Housing Association (LRHA), a 417-home landlord, said its board had decided not to renew its membership.

The decision was taken due to the association’s disagreement with the voluntary NHF deal last year to extend the Right to Buy to housing associations. The decision follows that of Cumbria-based Westfield Housing Association, which voted to leave the NHF over Right to Buy in December.

In a statement today, LRHA said the federation’s guidance on the voluntary deal ballot paper was “an attempt to pressurise housing associations” to agree to the deal.

The association was also angered by an NHF administrative error, which meant LRHA was recorded as a ‘yes’ vote instead of a ‘no’ vote, although this was later amended.

LRHA, which is based in rural Lincolnshire, said the Right to Buy voluntary agreement had failed to protect the supply of affordable housing in rural areas.

“The portable discount option being proposed is not realistic in the rural context owing to the likely unavailability of an alternative property in the same locality,” its statement said.

“Furthermore, affordable rented properties in rural areas are invariably occupied by tenants who work in the area, and so offering an alternative property owned by another housing association will invariably be seen as inappropriate by the tenant in question.”

The association is pushing for a full exemption for rural landlords under the extended Right to Buy.

Rob Warm, head of member relations at the NHF, said: “We are always disappointed to see members disaffiliate. Clearly this was a decision for LRHA’s board and we respect their views, while not agreeing with their assessment of how this policy will impact on rural providers and communities.”

Despite some members quitting the NHF, the voluntary deal has been largely backed by the sector. The NHF has said 86% of associations which voted have supported the offer, representing 93% of all association rented homes.

 

AT-A-GLANCE: THE VOLUNTARY RIGHT TO BUY DEAL

  • Every housing association tenant will have the right to purchase a home with a Right to Buy discount. The presumption is that housing associations would sell the tenant the property in which they live.
  • The government will compensate the housing associations for the discount and allow it to keep the receipt to reinvest in building new homes.
  • Associations will have the flexibility to replace homes with other tenures, such as shared ownership.
  • Associations would have the discretion not to sell “in particular circumstances” such as in rural areas or homes that have been adapted. In these cases tenants would be offered a discount to buy an alternative home.

 

 


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