Posted 08.10.15
Prime Minister David Cameron announced (07.10.15) announced a new agreement with housing associations and the National Housing Federation that will extend the Right to Buy to 1.3 million more families across the country.
The Prime Minister said:
"Some people said this would be impossible and that housing associations would never stand for it. But today we have secured a deal with housing associations to give their tenants the Right to Buy their home.
"That will mean the first tenants can start to buy their homes from next year.
"As we said in our manifesto - 1.3 million to be given the chance to become homeowners. A promise made, a promise kept."
The National Housing Federation Agreement Key Points
Every housing association tenant would have the right to purchase a home at Right to Buy level discounts (subject to the Right to Buy eligibility requirements). The presumption is that housing associations would sell the tenant the property in which they live.
The Government would compensate the housing association for the discount offered to the tenant, and housing associations would retain the sales receipt to enable them to reinvest in the provision of new homes.
Housing associations would use sales proceeds to provide new supply and would have flexibility to replace rented homes with other tenures such as shared ownership.
Reflecting the existing Right to Buy, housing associations would have discretion not to sell a particular property in some limited circumstances, for example where a property is in a very rural area and could not be replaced, or where it is adapted for special needs tenants.
However, even in these exceptional cases, housing associations would offer tenants the opportunity to use their discount to buy an alternative home from either their own or another association's stock.
Posted 05.10.15
The National Housing Federation's (NHF) proposal for the voluntary extension of the Right to Buy scheme covering housing association properties has received the support of a majority of associations.
Of those that responded, 86% - representing 93% of housing association properties - voted in favour of the voluntary extension.
However, 214 of NHF member associations did not respond at all, which puts an alternative interpretation of support received - 55% of NHF members said yes, 6% said no and 39% abstained or did not respond.
The view of David Orr, Chief Executive of the NHF, was that the sector had responded with a "resounding yes". He said:
"A clear majority of our members - covering 93% of all housing association rented homes - have told us that they want us to go ahead and make an offer to government.
"Under the terms of the offer, the sector has pledged a one-for-one replacement of all homes sold, which will boost the country's housing supply.
"Crucially, it would also preserve housing associations' independence, which has allowed them to bring in £76 billion in private finance to homes and communities over the last 30 years."
It is understood that the NHF has now formally submitted the offer to government for consideration.
See our earlier reports in the September edition of Housing Monthly Diary - 'Housing Association Sector Has One Week to Vote on Voluntary Right to Buy Deal' and 'Right To Buy Deal: The Unanswered Questions'.
