In October 2015, the National Housing Federation, on behalf of its members, put forward a proposal to the Government to deliver its commitment to extend Right to Buy to housing association tenants by way of voluntary agreement rather than legislation.
The original proposal to the Government (PDF, opens in new window) was accepted by the Prime Minister, and work is now underway to develop the detail of the process.
This agreement is based on four key principles:
- Right to Buy discounts for housing association tenants: housing association tenants would have the right to purchase a home at Right to Buy level discounts.
- Board control over which homes to sell: housing associations will have the final decision about whether to sell an individual property, with the presumption that they will sell a tenant their current home where they can.
- Full compensation: housing associations will get the full market value of the properties sold, with the value of the discount funded by the Government.
- Flexible one for one replacement: nationally, for every home sold under the agreement, a new affordable property would be built thereby increasing overall supply. The type and location will be flexible to their needs.
We have prepared a briefing for members that summarises the Voluntary Right to Buy agreement and outlines the key principles.
You can find out how Voluntary Right to Buy is developing by reading our briefing on the development process.