Right to Buy or Wrong to Buy that is the question!
We could spend hours deliberating over the various different arguments for and against the extension of the Right to Buy scheme to housing association tenants but instead we’ve decided to focus on the figures because numbers don’t lie.
So let’s get started with the key figures for Right to Buy over the last three years since the discounts were increased.
- Nearly 30,000 homes have been sold since 2012
- Approximately 3,337 replacements have been started
- Up to £860m has been raised in sales receipts to invest in new build homes
Although these figures are slowly increasing they are still shy of the levels before the financial crisis. With current home sales of 12,304, that’s a 9% increase on last year’s figures of 11,261 but still only 83% of the 17,684 sales figure from 2006-07.
Let’s delve a little deeper and break this down by quarter.
Here are the latest figures from Quarter 4 (January to March) of this year to give you an idea of how much sales and replacements have increased or decreased in the space of a year.
January to March figures
- 3321 council homes sold
- 710 replacement homes started
- 34% of homes sold were in London
- £261m raised from Right to Buy sales
- Average receipt per home was £78,000
The number of homes sold in Quarter 4 this year was actually 2% less than in Quarter 4 last year but the total number of homes for the year showed an overall increase of 9%.
The total funds raised by local authorities through the Right to Buy scheme in 2014-15 was £261m which is a 7% increase on the previous year when the total was £243m. The average receipt for a home was £6,000 more than the same quarter last year which could be influenced by the increase in sales of London properties that carry a higher price tag.
So overall, house sales through the Right to Buy scheme are on the up although they are yet to reach the levels before the recession. This means that with the proposed extension of the Right to Buy to housing association tenants making discounts available to more people, we could see a sharper increase in sales over the coming years.
For more information on the proposed Right to Buy extension check out our Right to Buy blog.
By Anna Cross
Please Note: Every care was taken to ensure the information in this article was correct at the time of publication. Any written guidance provided does not replace the reader’s professional judgement and any construction project should comply with the relevant Building Regulations or applicable technical standards. However, for the most up to date LABC Warranty technical guidance please refer to your Risk Management Surveyor and the latest version of the LABC Warranty technical manual.