Lewis pressured to explain RTB restrictions claim

The housing minister told MPs there were “restrictions on what people could do for a period of time” after buying a home, following a question from Labour MP Ruth Cadbury about ex-council properties ending up in the private sector.

However, Ms Cadbury has now called on the minister to clarify his comments, after it emerged no such restriction on sub-letting Right to Buy homes exists.

During a debate on the Right to Buy yesterday, Mr Lewis said: “When a home is sold under the Right to Buy, under the current scheme, and this will continue through with the extended scheme, there are restrictions on what people can do for a period of time.

“But ultimately, when you go many years down the line I absolutely defend the right of any homeowner to do what other homeowners can do in terms of living in it, selling it… but there are protections for the first few years after purchase.”

Under the current Right to Buy, purchasers must offer the local council or housing association first refusal if they sell within 10 years. They must also repay some or all of the discount if they sell in the first five.

However, there are no restrictions preventing a homeowner from sub-letting a home immediately – with many local authorities, particularly in London, warning this is a relatively common practice.

Research carried out by Inside Housing in August revealed 2,020 flats sold by 62 councils since 2012 were already being let privately. Overall, 37% of ex-council flats were in the private rented sector.

Speaking to Inside Housing yesterday, Ms Cadbury said: “I’d call on [Mr Lewis] to explain what he meant, and also to clarify his assessment of the overall impact over time of the changes if homes end up being let privately.”

She said the taxpayer faces a “triple whammy” if homes are let privately – as they are often used to house homeless families on housing benefit at much higher rents.

Giles Peaker, a housing lawyer at Anthony Gold solicitors, said: “There is no statutory prohibition on subletting – while the individual lease from the local authority may include some restriction, there’s nothing at government level.”

UPDATE: At 1.10pm on 13.10.2015

A Department for Communities and Local Government spokesman said: “The minister was speaking in general terms about the Right to Buy scheme which has financial restrictions in place for the re-sale of the property within five years. The mortgage provider and landlord can also put restrictions on sub-letting in the terms of any sale.”