Government confirms further reforms to Right to Buy including significant increase to minimum eligibility

The next set of reforms to be brought forward will also include: 

• Amending discount rules so that discounts start at 5% of the property value and increase by 1% each year up to the maximum discount of 15% of the property value or the cash cap (whichever is lower).  
• A 35-year new build exemption period so new social homes cannot be sold under Right to Buy for 35 years after they are built.  

The Government said its overhaul of the Right to Buy is aimed at supporting councils “to better protect and rebuild depleted housing stock while maintaining a responsible route into homeownership for longstanding tenants”.  

Earlier reforms saw maximum cash discounts reduced to £16,000 - £38,000 depending on the area, and councils granted the right to retain all of the receipts from sales.

Finally, the ‘cost floor’ protection has been extended from 15 to 30 years, meaning landlords can limit discounts so that the sale price does not fall below the amount spent on building, repairing and maintaining the properties.

The Government said the latest changes will be brought forward “when Parliamentary time allows”.

Gavin Smart, CEO of the Chartered Institute of Housing, welcomed the Government’s continued focus on reforming Right to Buy, commending the “clear recognition that change is needed to better protect and rebuild our social housing. The measures confirmed today are a positive step towards addressing the long-standing imbalance between homes sold and those replaced.

“We also welcome the further work on fraud prevention and the scheme’s impact in rural areas, both of which are crucial to ensuring Right to Buy operates fairly and sustainably.”

Harry Rodd