A recently published Impact Assessment Report has estimated that over the next ten years, tightening right to buy regulations could save 18,000 social homes.
The report estimates that following the introduction of the bill, what would have been losses of thousands social homes is now estimated to become net gains. Using pre-bill data, the report estimates a net loss of 26,000 homes between 2026/27 and 2036/27, but following the governments restrictions to the scheme, the same table now predicts a gain of 18,000 homes over the same time period.
The reforms to right to buy include extending the eligibility requirement to 10 years, making new build social housing exempt from the scheme for 35 years, and amending the cash discount for residents who wish to buy their home.
READ MORE: Management Training Program Seeks to Counter Housebuilding Stall
Considerable research has pointed to Thatcher’s right to buy scheme as a key destabiliser in the country’s social housing stock, as more and more homes were sold off since the 1980’s and never replaced. Although the scheme has been an effective vehicle for the working class to step on to the property ladder, years of undersupply of social housing has meant this ladder was pulled up behind them.
A vast majority of homes that were sold under Right to Buy are now in the private sector and rented out at market price, as well as many homes sold ending up being bought back by councils at nearly twice the price.
The reforms were rolled out as part of the Social Housing Renewal Bill, which was announced at the Kings’ Speech earlier this year. The Bill also featured a number of other measures aimed at protecting and expanding social housing stock, as well as protecting it’s residents.
Amongst these was a review of the current social housing allocation system. Multiple voices in the sector have called for reform to the system, including Crisis, the G15 and the London Assembly Housing Committee. Reports from all three organisations identified the allocations system as confusing and unfair, and often alienating those in the most urgent need. The assessments surrounding the allocation systems stands at odds with recent rhetoric from Reform UK leader Nigel Farage, who earlier this week claimed the social housing system was “anti-white”, and promised to ban all foreign nationals from social housing.
The bill also contains new protections for social housing residents suffering from domestic abuse. The law will allow social housing providers to evict domestic abuse perpetrators, and allow survivors to remain in their homes and communities. Currently, landlords can only evict a perpetrator after the victim has already left the home, and in joint tenancies, the only option for the victim is to end the tenancy entirely – potentially leaving them homeless. The law also closes a loophole that has meant perpetrators of domestic abuse could serve a Notice to Quit to make victims homeless, under the new law, a Notice to Quit served by a perpetrator will not end the social housing joint tenancy while court proceedings are ongoing.
