Right to Buy - TIME FOR RENEWAL

Victor Chamberlain, Councillor, Southwark Council

In the 1980s, Margaret Thatcher's Conservative government introduced the "Right to Buy" scheme in the United Kingdom, allowing council tenants to purchase their homes at discounted prices. At the time, it was hailed as a revolutionary policy, promising social mobility and homeownership for the masses. However, as the years have passed, it has become increasingly evident that Right to Buy has failed to live up to its lofty aspirations, exacerbating rather than alleviating the housing crisis in the UK.

By allowing tenants to buy their council homes at discounted rates, the government inadvertently depleted the stock of affordable housing available for those in need. This has created a vicious cycle where the demand for social housing far exceeds the supply, leading to skyrocketing rents and homelessness. The cost of building new homes is simply not covered by the receipts from Right to Buy. 

Amidst a housing crisis of unprecedented proportions, characterized by over a million people on council housing waiting lists and eye watering spending on temporary accommodation, the status quo of the Right to Buy scheme is untenable. The latest figures paint a stark picture: while thousands of homes are sold through Right to Buy each year, the number of replacements falls drastically short, resulting in a net loss of social homes. Councils can’t and the private sector isn’t building enough genuinely affordable homes. 

The implications of this trend are profound. Vulnerable individuals and families find themselves locked out of secure, safe social housing, while local authorities grapple with dwindling resources and escalating demand. It is imperative that we take decisive action to rectify this situation.

I sit on the Local Government Association’s Local Infrastructure and Net Zero Board. We’ve recently published a paper on three crucial reforms that are urgently required to safeguard our social housing stock and ensure everyone has access to quality and affordable housing:

We need to give councils control over the use of funds raised through the Right to Buy, enabling them to invest in the development, delivery, or acquisition of new council homes as per local needs. Local councils understand their local housing needs best and they know the solutions required for their communities.

We need to protect council’s investment in social housing to prevent loss-making transactions. We can do this by increasing the tenancy requirements to enable right to buy to 15 years, exempting newly built and retrofitted homes from right to buy and introducing an indefinite cost floor protection so the purchase price of the property does not fall below what councils have invested to build and maintain homes, 

We should allow councils to shape the Right to Buy scheme according to their unique circumstances. For examples councils should be able to set the discount on levels on which homes can be purchased and in some areas this could be at 0%. This localised approach ensures that housing solutions resonate with the needs and aspirations of local communities.

As we gear up to the General Election, we must focus all political parties on the need for Right to Buy reform to champion initiatives that protect social housing over short-term gains. If Government were adopt these reforms it would allow Councils to regain their positon as a major house builder of affordable housing. 

The Right to Buy scheme stands at a crossroads, poised between perpetuating the status quo with social housing losses and embracing transformative reforms that will serve the needs of our diverse communities. It is incumbent upon everyone that cares about social progress to tackle our housing crisis and help councils to build the 100,000 social homes we need each year.

We must seize this moment as an opportunity to enact meaningful change, to safeguard the future of social housing, and to uphold the fundamental right to safe and secure housing for all. The time for action is now, and together, we can build a brighter future for generations to come.