You are viewing 1 of your 1 free articles
Association considers not implementing RTB extension
A housing association will take a board level decision over its participation in the Right to Buy extension due to “changes in the operating environment” since the deal was agreed.
South Yorkshire Housing Association (SYHA) will review the risks of the scheme once the full detail – including eligibility criteria – is released by the government.
It is keen not to lose too many properties as it is not sure the receipts will pay for replacement homes in low-value areas.
It also believes Brexit and the looming implementation of the ‘Local Housing Allowance cap’ for social housing has altered its economic outlook since the voluntary deal was agreed.
Tony Stacey, chief executive of SYHA, told Inside Housing: “When the details of Right to Buy are finalised, we will take a report back to our board, which will say given the changed circumstances in which we are operating – particularly the threat of the LHA cap – our risk profile has now changed.
“We will try to do it if we can because we want to support the National Housing Federation and what David Orr did is the right thing to do. However, once we have that data we will take a look at risk and if we think it’s too risky we won’t do it.”
Jonathan Higgs, chief executive of Raven Housing Trust and vice-chair of the Placeshapers group of community-based landlords, said: “I haven’t heard any other members thinking about not implementing the Right to Buy. But throughout the whole process, the National Housing Federation has been at pains to stress that this is a matter for individual boards to make independent decisions.”
Under the Housing and Planning Act, housing associations will need to persuade the regulator they are fulfilling ‘homeownership criteria’.
It has been assumed that most will do so through implementing the Right to Buy. However, explanatory notes to the Housing and Planning Act published last year said it is open to associations to meet the criteria “in other ways” but these ways would have to provide “an equal or greater level of support” to tenants to help them into homeownership.
