The government has announced reforms to the Right to Buy (RTB) scheme, designed to create a fairer and more sustainable system that ensures councils can protect and rebuild their social housing stock. These changes, currently under consultation, are especially significant for rural areas, where the availability of social housing is increasingly under strain.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner, underlined the urgency of these reforms in addressing the housing crisis:

“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.
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.”

Key Proposed Reforms

The consultation includes a range of measures designed to address the depletion of social housing and support councils in maintaining a strong housing stock:

Extended Tenancy Requirements: Increasing the minimum tenancy period required for RTB eligibility, ensuring greater stability.

Exemptions for Newly Built Homes: Shielding newly constructed social homes from immediate sale, encouraging council investment in housing development.

Replacement Targets: Setting expectations for councils to replace RTB homes sold with new social rent properties of the same size and in the same area.

Enhanced Discount Repayment Periods: Doubling the timeframe in which councils can recover RTB discounts from resold properties from 5 to 10 years.

A Lifeline for Rural Housing

For rural communities, where the loss of social housing has a disproportionate impact, these reforms represent an essential step toward protecting vital housing resources. The scarcity of affordable housing in rural areas, coupled with higher costs and challenges in replacing stock, has created acute pressures. These changes give rural councils greater confidence and capability to meet local housing needs.

Recent actions by the government to reduce RTB discounts, extend cost-floor protections, and allow councils to retain all RTB receipts have already provided a foundation for improvement. These new proposals are expected to build on this progress, offering councils enhanced tools to maintain and grow their housing stock.

Sector-Wide Response

The proposals have drawn support from across the housing sector. Cllr Adam Hug, Housing Spokesperson for the Local Government Association (LGA), welcomed the consultation and its potential to strengthen councils’ ability to address housing shortages:

“The LGA has long-called for reform to Right to Buy as the system in its current format does not work for local authorities and those most in need of social housing.
Steps taken by government already this year to amend the scheme are positive, and the measures set out today in this consultation will help further in supporting the replacement of sold homes and to stem the continued loss of existing stock.
Councils are keen to deepen our collaboration with the Government to increase affordable housing and help people on council housing waiting lists and record numbers stuck in temporary accommodation.”

Kate Henderson, Chief Executive of the National Housing Federation, echoed this sentiment, highlighting the broader societal impact of the changes:

“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.
Social housing is the only housing that is affordable to families on low incomes. Last year there were only 700 net new social homes due to sales through Right to Buy, whilst over 150,000 homeless children spent the night in temporary accommodation.”

The Road Ahead

The consultation closes at 11.59PM on 15 January 2025, views from councils, housing providers, and the public are sought. The Rural Services Network urges its members to participate and ensure the unique challenges faced by rural communities are heard.

For rural councils, these reforms represent an opportunity to secure the future of social housing, provide for vulnerable residents, and plan confidently for long-term housing needs.