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Council housing company homes could be subject to the Right to Buy
WHITE PAPER: The government wants homes built through councils’ private housing companies to be subject to Right to Buy, the Housing White Paper has revealed.
A growing number of councils have set up housing companies to directly build homes for affordable rent, private rent and market sale. A government spokesperson confirmed the Right to Buy would only apply to the affordable and social rent homes developed by these companies.
Some have set up these companies partly in an attempt to avoid having to sell off their stock through Right to Buy. The government had previously warned councils not to use council companies to “evade” the Right to Buy.
In the White Paper the government says it “welcomes” council housing companies, local development corporations and joint ventures building housing, but adds: “However, we want to see tenants that local authorities place in new affordable properties offered equivalent terms to those in council housing, including a right to buy their home.”
Recent Inside Housing research revealed more than a third of councils have set up housing companies, or are considering doing so. Although the majority have not decided what tenure homes they will build through their companies, several councils said they will build 247 affordable rented or social rented homes between them. Sheffield will deliver the greatest number of affordable homes – 104.
Steve Bullock, mayor of Lewisham and housing spokesperson for London Councils, said he welcomed the government’s message that the public sector should have a role in housebuilding but warned against “creating disincentives” to take on that role.
Keith House, leader of Eastleigh Council who authored a government-commissioned report into encouraging councils to build, said: “Councils are setting up companies for a variety of reasons not just around Right to Buy.” He added: “My personal view is Right to Buy needs reform so that councils can develop freely but the wider picture of encouraging councils to set up housing companies is in itself a good thing.”
A spokesperson for the Local Government Association said: “As the White Paper acknowledges, we are in a difficult housing market and giving councils freedom from central control is the best way to help them focus on building homes that meet local needs. We need further discussion with government on supporting home ownership on a voluntary basis and where this meets local needs.”
Update: at 1.10pm, 08.02.17 - This story has been updated with added comment.
