{"id":4135,"date":"2018-06-08T12:01:03","date_gmt":"2018-06-08T11:01:03","guid":{"rendered":"http:\/\/www.gpsj.co.uk\/?p=4135"},"modified":"2018-06-11T21:49:30","modified_gmt":"2018-06-11T20:49:30","slug":"right-to-buy-replacement-will-be-all-but-eliminated-in-just-five-years-warns-lga","status":"publish","type":"post","link":"https:\/\/www.gpsj.co.uk\/?p=4135","title":{"rendered":"RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA"},"content":{"rendered":"<p><a href=\"http:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-4137 size-medium\" src=\"http:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-300x200.jpg 300w, https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-768x512.jpg 768w, https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-1024x683.jpg 1024w, https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-150x100.jpg 150w, https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-400x267.jpg 400w, https:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-500x333.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Councils\u2019 ability to replace homes sold under Right to Buy (RTB) will be all but eliminated within five years without major reform of the scheme, new analysis from the Local Government Association has told GPSJ today.<\/p>\n<p>The current Right-to-Buy system only allows councils to keep a third of each RTB receipt to build a replacement home and prevents local authorities from borrowing to make up the shortfall.<\/p>\n<p>A new analysis by Savills, commissioned by the LGA and published today, examined the impact of continued restrictions on councils\u2019 ability to borrow to build new homes.<\/p>\n<p>It reveals that:<\/p>\n<ul>\n<li>Two thirds of councils will have no chance of replacing homes sold off under Right to Buy on a one-for-one basis in five years\u2019 time unless a significant restructuring of the scheme takes place.<\/li>\n<\/ul>\n<ul>\n<li>Around 12,224 homes were sold under RTB last year. Faced with ongoing borrowing restrictions and based on the levels of sales remaining consistent, the analysis estimates that in 2023 councils would only be able to replace approximately 2,000 of these homes.<\/li>\n<li>Less than a third of councils would be able to sustain any kind of one-for-one replacement of homes sold under the scheme in five years\u2019 time.<\/li>\n<\/ul>\n<p>Additional rules applied to Right to Buy, including a significant portion of all receipts being handed over to the Treasury rather than the communities in which the homes are sold, are hampering the ability of local authorities to re-invest in housing.<\/p>\n<p>The LGA said that, in the last six years, more than 60,000 homes have been sold off under the scheme at a price which is, on average, half the market rate, leaving councils with enough funding to build or buy just 14,000 new homes to replace them.<\/p>\n<p>This leaves a shortfall of 46,000 homes which could have provided secure affordable housing for key workers, victims of domestic violence, veterans, people facing homelessness, and others in desperate need of a home they can afford.<\/p>\n<p>The UK\u2019s average family size is 2.4. Applying this to the number of homes sold off reveals that councils have lost enough homes to house the populations of Basingstoke, Worcester or Lincoln.<\/p>\n<p>The LGA is warning that without a fundamental re-examination of how the scheme is funded, the Right to Buy, which helps families and individuals who otherwise wouldn\u2019t be able to get on the housing ladder into home-ownership, faces becoming a thing of the past.<\/p>\n<p>Councils are therefore calling for a comprehensive package of reform to the funding of Right to Buy, including allowing all councils to borrow to build new homes, enabling local authorities to keep 100 per cent of all sales receipts, and for councils to have the ability to set Right to Buy discounts locally to reflect community needs.<\/p>\n<p>Cllr Martin Tett, LGA Housing spokesman, told GPSJ:<\/p>\n<p>\u201cWe know that the Right to Buy changes lives \u2013 it helps people who otherwise wouldn\u2019t be able to get on the ladder experience the security and independence of home-ownership. It is essential that it continues to do so.<\/p>\n<p>\u201cHowever, we are now in a situation where without fundamental reform of the way the scheme is funded, this vital stepping stone into home-ownership is under threat. Councils urgently need funding to support the replacement of homes sold off under the scheme, or there\u2019s a real chance they could be all but eliminated. Without a pipeline of new homes, future generations cannot benefit from the scheme.<\/p>\n<p>\u201cEnabling all councils to borrow to build and to keep 100 per cent of their Right to Buy receipts will be critical to delivering a renaissance in house building by councils. However, if we\u2019re to truly make Right to Buy sustainable, we must also move towards greater flexibility on discounts locally so we can reflect local community need.<\/p>\n<p>\u201cCouncils are closest to their communities and it\u2019s essential this money is reinvested in homes in those areas so our residents can access secure, affordable housing. This money is badly needed to deliver homes for our residents \u2013 instead of resting in an account in Whitehall, it should be sent back to where it belongs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Councils\u2019 ability to replace homes sold under Right to Buy (RTB) will be all but eliminated within five years without major reform of the scheme, new analysis from the Local Government Association has told GPSJ today.<\/p>\n<p>The current Right-to-Buy system only allows councils to keep a third of each RTB receipt to build a replacement <\/p>\n<p>Continue reading <a href=\"https:\/\/www.gpsj.co.uk\/?p=4135\">RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[4,7,2],"tags":[1132,25,417,26,264,763,744,743,422,1131],"class_list":["post-4135","post","type-post","status-publish","format-standard","hentry","category-construction-engineering","category-government-agencies","category-local-authority-councils","tag-cllr-martin-tett","tag-government-public-sector-journal","tag-government-journal","tag-gpsj","tag-gpsj-magazine","tag-housing","tag-lga","tag-local-government-association","tag-public-sector-magazine","tag-right-to-buy-rtb","odd"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA - Government &amp; Public Sector Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gpsj.co.uk\/?p=4135\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA - Government &amp; Public Sector Journal\" \/>\n<meta property=\"og:description\" content=\"Councils\u2019 ability to replace homes sold under Right to Buy (RTB) will be all but eliminated within five years without major reform of the scheme, new analysis from the Local Government Association has told GPSJ today. The current Right-to-Buy system only allows councils to keep a third of each RTB receipt to build a replacement Continue reading RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.gpsj.co.uk\/?p=4135\" \/>\n<meta property=\"og:site_name\" content=\"Government &amp; Public Sector Journal\" \/>\n<meta property=\"article:published_time\" content=\"2018-06-08T11:01:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-06-11T20:49:30+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.gpsj.co.uk\/wp-content\/uploads\/2018\/06\/IMG_2477-300x200.jpg\" \/>\n<meta name=\"author\" content=\"The GPSJ Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The GPSJ Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.gpsj.co.uk\\\/?p=4135#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.gpsj.co.uk\\\/?p=4135\"},\"author\":{\"name\":\"The GPSJ Team\",\"@id\":\"https:\\\/\\\/www.gpsj.co.uk\\\/#\\\/schema\\\/person\\\/d54386f99736367ec2789825fed93b4a\"},\"headline\":\"RIGHT TO BUY REPLACEMENT WILL BE ALL BUT ELIMINATED IN JUST FIVE YEARS, WARNS LGA\",\"datePublished\":\"2018-06-08T11:01:03+00:00\",\"dateModified\":\"2018-06-11T20:49:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.gpsj.co.uk\\\/?p=4135\"},\"wordCount\":691,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.gpsj.co.uk\\\/?p=4135#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/www.gpsj.co.uk\\\/wp-content\\\/uploads\\\/2018\\\/06\\\/IMG_2477-300x200.jpg\",\"keywords\":[\"Cllr Martin Tett\",\"Government &amp; 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