Right-to-Buy receipts fuel housebuilding boom, says Pickles

15 May 14
Council housebuilding has hit its highest level since 1991 as town halls use the proceeds of the revamped Right-to-Buy scheme to fund developments, Local Government Secretary Eric Pickles has announced

By Richard Johnstone | 15 May 2014

Council housebuilding has hit its highest level since 1991 as town halls use the proceeds of the revamped Right-to-Buy scheme to fund developments, Local Government Secretary Eric Pickles has announced.

Publishing the latest housebuilding figures, the Department for Communities and Local Government said that since the government increased Right-to-Buy discounts in April 2012, the number of local authority sales had quadrupled from 2,638 in 2011/12 to 11,238 in 2013/14.

Under the revised programme, councils can retain the receipts from sales to build new homes, and in the three months to the end of March, work started on construction of more than 900 homes using this funding. 

Overall, councils built 1,090 council homes in the quarter, the highest quarterly total since 1991, Pickles said. He also announced the government’s Help to Buy scheme of both equity loans and mortgage guarantees had helped more than 27,000 people buy homes, while there were a total of 36,450 new homes started in the three months from January – 11% higher than the previous quarter.

‘In 2010 we inherited a situation where builders couldn’t build, buyers couldn’t buy and lenders wouldn’t lend,’ Pickles said.

‘Today’s figures show we’re turning this around, with Help to Buy not only helping aspiring homeowners but also leading to a resurgence in house building. Thanks to this and the reinvigorated Right to Buy, we’re ensuring anyone who works hard and wants to get on the property ladder will be able to do so.’

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top