By Neil Merrick
03 September 2009
Right-to-buy and other sales of housing by social landlords have plummeted since the recession, according to the annual study by the Department for Communities and Local Government.
Just 3,860 homes were bought by council and housing association tenants last year through the RTB scheme, compared with 15,110 in 2007/08. These accounted for just over half of the 7,300 properties sold to tenants by councils and housing associations – the fifth year running that sales have declined. In 2007/08, tenants bought a total of 19,360 houses and flats.
The decline in RTB sales began five years ago after ministers capped discounts for tenants in London and other high-demand areas for social housing. Sales reached a peak of 84,100 in 2003/04, including 69,580 by councils.
Last year, just 31% of RTB applications made to councils were successful, compared with 61% in 2000/01. But the sums being accrued by local authorities for each home are still rising. Whereas councils raised a total of only £234m from RTB sales last year (about one quarter of their total receipts), the average receipt per home rose from £78,130 to £81,840.
Before 2004/05, almost a quarter of RTB sales were in London. Following the discount changes, London now accounts for only 14%, compared with 17% in northwest England and the West Midlands.
The DCLG study, published on August 27, also shows that Social Homebuy, under which tenants can buy shares in their home, is also struggling. Just 100 homes have been sold since the scheme was launched two years ago.
03 September 2009
Right-to-buy and other sales of housing by social landlords have plummeted since the recession, according to the annual study by the Department for Communities and Local Government.
Just 3,860 homes were bought by council and housing association tenants last year through the RTB scheme, compared with 15,110 in 2007/08. These accounted for just over half of the 7,300 properties sold to tenants by councils and housing associations – the fifth year running that sales have declined. In 2007/08, tenants bought a total of 19,360 houses and flats.
The decline in RTB sales began five years ago after ministers capped discounts for tenants in London and other high-demand areas for social housing. Sales reached a peak of 84,100 in 2003/04, including 69,580 by councils.
Last year, just 31% of RTB applications made to councils were successful, compared with 61% in 2000/01. But the sums being accrued by local authorities for each home are still rising. Whereas councils raised a total of only £234m from RTB sales last year (about one quarter of their total receipts), the average receipt per home rose from £78,130 to £81,840.
Before 2004/05, almost a quarter of RTB sales were in London. Following the discount changes, London now accounts for only 14%, compared with 17% in northwest England and the West Midlands.
The DCLG study, published on August 27, also shows that Social Homebuy, under which tenants can buy shares in their home, is also struggling. Just 100 homes have been sold since the scheme was launched two years ago.
