Government accepts NHF Right to Buy offer

David Cameron today told the Conservative Party conference the government had secured a deal with housing associations, which will mean that tenants can start to buy their homes from next year.

National Housing Federation (NHF) members controlling 93% of housing association rented stock backed a proposal last week to accept the Right to Buy extension voluntarily.

In his keynote speech, the prime minister said: “In our manifesto, we announced a breakthrough policy: extending the Right to Buy to housing association tenants.

“Some people said this would be impossible. Housing associations would never stand for it. The legislation would never pass. Let me tell you something.

“Greg Clark, our brilliant communities secretary, has secured a deal with housing associations to give their tenants the Right to Buy their home.

“That will mean the first tenants can start to buy their homes from next year.”

David Orr, chief executive at the NHF, said: “This is a better and more flexible Right to Buy for residents, for housing associations and the nation’s housing supply.

“We made the offer on the back of sector-wide support for our proposal, which addresses our initial concerns around supply and independence.

“This new Right to Buy will help housing associations retain the independence that has allowed them to channel £76bn in private investment into homebuilding over the last 30 years, and see them get the full market value of homes sold – crucial for building replacements.”

Out of all the NHF’s 584 members, 55% said yes, 6% said no and 39% abstained or did not respond to the ballot. The 584 figure for members does not include multiple memberships of organisations in the same groups.

UPDATE: At 1.17pm on 7.10.2015

The government has now published more information confirming it has accepted the offer from the National Housing Federation in full.

Under the terms of the offer:

• 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.

The Department for Communities and Local Government statement does not mention how the Right to Buy extension will be enforced for the 37 housing associations which voted ‘no’ to the voluntary deal. Inside Housing is seeking clarity from government on this point.