Government to press ahead with reforms to Right to Buy

In its response to its consultation on reforming RTB, the Government said it would “simplify the rules and ensure that a greater proportion of receipts are used to deliver new social and affordable housing”.

Existing flexibilities in spending receipts will be extended indefinitely and from 2026-27 councils will be allowed to combine RTB receipts with grant funding for social and affordable housing.

Changes will be made to laws on eligibility requirements, discounts RTB for newly built social housing and restrictions on resale of RTB properties.

Although the rule requiring one-for-one RTB replacement of homes will go - because this is deemed not always financially viable - councils will be encouraged to replace homes sold and “to play a central role in the government’s commitment to deliver a generational increase in social and affordable housebuilding”

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RTB sales will be monitored to ensure that more social rent homes are built than are sold.

There will also be measures to help protect vulnerable tenants from being pressured into buying, and to crack down on third party-backed applications.

Detailed reforms include that RTB can be exercised only by those who have been a public sector tenant for 10 years instead of the current three years.

Those who own a home or have previously used RTB will be prevented from exercising the right except in exceptional circumstances, such as victims of domestic abuse.

Discounts will be sharply reduced from the initial 35% for houses and 50% for flats to 5% for both, applicable only for those who have been public sector tenants for 10 years. Discounts will increase by 1% for each subsequent year to a maximum of 15%.

Newly built social and affordable housing will be exempt from RTB for 35 years and market rent homes held in Housing Revenue Accounts will be exempt.

If a property bought under RTB is sold within the first 10 years - instead of five years - the council concerned will be able to seek repayment of all or part of the discount on a sliding scale. Councils will have an indefinite right of first refusal.

The Government's response said it would bring forward legislation to implement reforms "when Parliamentary time allows".

Mark Smulian