Landlords plot strategy over Right to Buy plans

Under the government’s scheme, the Right to Buy will be extended to 1.3 million housing association tenants, funded by forcing councils to sell high-value stock.

However, the government has yet to confirm many key details of how the policy will work and landlords are now in wide-ranging discussions to try and shape the policy.

A prominent housing sector figure, currently involved in negotiations with government, said sector figures are trying to establish the level of ‘political will’ behind the introduction of the policy as this would be key in deciding how much mitigation could be achieved. 

Landlords are understood to be pushing for the government to bring in the policy in the form of an extension of the current Right to Acquire, which would not require primary legislation. This would mean homes built or bought by housing associations before 31 March 1997 would be excluded.

Catherine Hand, a partner at law firm Trowers & Hamlins, said the Queen’s Speech briefing document suggests an extension of Right to Acquire. She said this was because of a reference to specific regulations relating to the Right to Acquire, and wording which talked about extending discounts rather than introducing new ones.

Housing associations are also expected to lobby for adequate compensation to allow them to replace stock and for reassurance that there will not be a significant time lag between selling a home and receiving compensation. 

Tony Stacey, chief executive of the Placeshapers group, representing more than 100 housing associations, is calling for a ‘cost floor’ – a value below which homes would not be sold.

Mr Stacey also said he would be taking legal advice on challenging the policy when more detail is announced.

Rural housing associations are calling for exemptions from the policy, arguing that development opportunities are less common in rural areas and that homes subject to the Right to Buy would be less likely to receive planning permission under ‘rural exception’ rules, which require homes to be affordable in perpetuity.

Sue Chalkley, chief executive of Hastoe Housing Association, said: ‘We will be combining with the Campaign to Protect Rural England (CPRE) to call for an exemption for rural areas.’

The government has declined to provide any more detail at this stage.