Just 700 net social rent homes delivered in England last year due to Right to Buy impact, new RSH data shows

England’s existing social housing supply is depleted every year by the scheme, while also disincentivising councils to build new social housing.

Discounts will be reduced alongside greater protections for newly built social housing and councils will be able to keep 100% of the receipts generated by a RTB sale.

But many in the sector believe the scheme should be brought to an end. Last week, property agent JLL renewed its call for RTB to be abolished after releasing figures that showed the negative impact the scheme is having on the social housing sector. 

In the past decade, the number of social homes sold via RTB in England is the equivalent to 34% of new homes completed by housing associations and councils, the research revealed. 

In the RSH’s latest release, returns from all private and local authority registered providers revealed that the sector provides around 4.5 million homes across England, with a net increase of nearly 43,000 social homes since 2023.

This overall increase has been driven by approximately 24,800 more Affordable Rent homes and 17,300 more low-cost homeownership homes.

Private registered providers built, purchased or acquired the majority of new homes in the sector, accounting for 85% of the total increase in Affordable Rent and 96% for low-cost homeownership properties.

The statistics showed that 82% of social homes in England are general needs (social rent and Affordable Rent), while supported housing makes up 11% and low-cost homeownership makes up 6%. 

Private registered providers also reported that 71% of homes had an Energy Performance Certificate rating of C or above, and a further 22% had a rating of D.   

Just over 511,000 homes were surveyed by landlords during the year. Over the year, these surveys and other provider activity identified nearly 42,000 homes which did not meet the Decent Homes Standard (DHS).

This led to 37,500 properties being remediated to bring them up to the DHS, and 1,800 were sold or demolished. A further 5,200 buildings were excluded from having to meet DHS requirements due to circumstances which prevent or limit remediation works. 

Will Perry, director of strategy at the RSH, said: “It is reassuring to see the sector continuing to build and acquire much-needed new social homes across the country, despite a challenging economic environment.  

“This data provides a rich source of insight into the sector as a whole, helping us understand the challenges facing both landlords and tenants.   

“Landlords should ensure they hold accurate, up-to-date data to inform strategic decisions, especially around rents and the condition of homes.”

As expected, rents increased over the year in line with the limit set for 2023-24. The average increase in social rent weekly net rents was 7.2% over the reported period.

The average weekly general needs rent in England was £105.22, though this varied across the country.

Average rents were lowest in the North East (£88.11) and highest in London (£129.83). Rents for local authorities are lower on average than for housing associations.