Right to Buy Receipts – Modified for the Better?

The government has recently announced significant changes to the use of Right to Buy receipts, some of which are very welcome.

The extension of the time for use of RTB receipts from three years to five years in particular, and increasing the percentage cap on how much of a receipt councils can use for new homes from 30% to 40%, are sensible moves and will be appreciated by local authorities. 

However, we agree with Chloe Fletcher (policy lead at the National Federation of ALMOs) that a braver approach could have made the Right to Buy policy more sustainable and equitable to those buying homes. While the cap was raised to 40%, the majority of councils need it to be at least 50% to build social rent homes. 

The new rule that would see councils being able to use the receipts for shared ownership or the new First Homes tenure needs a bit of thought, too. Used as a standalone funding stream it could prove counter-productive at a time when there is such a shortage of social rent. On the other hand, when properly managed as part of a structured development programme it may be a useful tool in helping to deliver projects that would otherwise flounder for lack of funding support.

If you are a local authority in need of support to develop schemes to utilise Right to Buy receipts, please contact one of our directors to discuss your requirements.