Ministers will make it harder for tenants in England to buy their own council homes under changes designed to increase Britain’s stock of socially rented housing, Angela Rayner has announced.
The housing secretary said on Wednesday that the government would consult on a series of changes to limit the number of people who can qualify for government-subsidised discounts to buy their houses.
The consultation is part of a broader package of measures designed to drastically shrink the scheme’s scope, which Rayner used to buy her own council house but which has been blamed for exacerbating the shortage of socially rented homes.
Rayner said: “For millions of people in the position I was once in, that first step into the secure social housing that changed my life has become a distant dream. Too many social homes have been sold off before they can be replaced, which has directly contributed to the worst housing crisis in living memory.”
She added: “We cannot fix the crisis without addressing this issue – it’s like trying to fill a bath when the plug’s not in. A fairer Right to Buy will help councils protect and increase their housing stock while also keeping the pathway to home ownership there for those who otherwise might not have the opportunity to get on the housing ladder.”
Labour has promised to build 1.5m homes during this parliament, but the housing minister, Matthew Pennycook, said on Wednesday that hitting the target would be difficult. “Delivering 1.5m homes is going to be more difficult than we expected in opposition,” he told the housing and local government select committee.
Ministers acknowledge they cannot meet that target without a major increase in the stock of socially rented homes, one part of which is limiting the number of houses that can be sold under the Right to Buy scheme.
Rachel Reeves, the chancellor, announced in the budget that the government would reduce the discount tenants could claim, as well as ensuring that councils got all the money generated from any such sale.
Rayner’s consultation proposes a further four changes to the scheme.
Under her plans, tenants will have to live in a house for longer than three years to claim a discount; newly built social homes will be exempted from the scheme; authorities will have to build a home for everyone they sell; and councils will be allowed to reclaim the discounts if a buyer resells the property within 10 years – up from the current five-year limit.
The government also confirmed it would not extend the scheme to housing associations, as proposed by the Conservatives in government.
Kate Henderson, chief executive of the National Housing Federation, said: “At a time when 4.2 million people are in need of social housing in England, we strongly support the government’s aim to protect the country’s social housing and welcome confirmation that Right to Buy will not be extended to housing associations.
“Alongside these reforms, we look forward to working with the government on the long-term housing strategy that is needed to deliver its housing ambitions and build a generation of new social homes.”
