31 August 2007
Local authorities could be given the power to buy shares in homes that they previously sold to tenants under the right to buy scheme.
The government is concerned that some leaseholders, particularly in London, are struggling to pay repair and refurbishment bills that partly arise from work to meet the decent homes standard. Present powers allow councils to buy back only the whole property from a leaseholder in financial difficulties.
According to a consultation paper from the Department for Communities and Local Government, published on August 22, the power would be discretionary, with councils able to keep additional receipts from asset sales to help cover the cost.
Another option floated in the paper is for councils to offer equity loans to former tenants. Instead of receiving interest, local authorities would gain a share of proceeds from a home when it was sold.
Clarifying the right to buy also sets out plans to cut administrative costs, including giving authorised lenders the right to lend money for right to buy sales. Consultations continue until the end of October.
PFaug2007
