The Minister said he was responding to appeals by local authorities for more time to take advantage of the new scheme by allowing them three years to reinvest the funds they gain from additional sales into hew housing. He said councils now have a "prime opportunity" to refresh their housing stock and help meet the housing needs of hard-working families currently languishing on the waiting list.
The revamped Right to Buy, which will give 2.5 million social tenants the opportunity to buy their home with discounts of up to £75,000 was launched last month.
Mr Shapps has said his ambition is that, for the first time, every extra Right to Buy home sold will be replaced by a new affordable home to rent nationally. He said he had listened to views raised by councils on how they would deliver this ambition, and has agreed to extend their timeframe for spending the receipts from two years to three.
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Council freedom for housebuilding
Under the new, light touch agreement between Whitehall and Town Halls published today, councils will have the opportunity to keep receipts from additional Right to Buy sales and the freedom to spend the cash as they see fit to meet local housing demand.
Councils will have the freedom to:
•decide on the type, size and location of the new homes they build according to local needs
•work with other organisations such as housing associations to finance and deliver affordable homes for their area; or
•pass the cash to Whitehall to help deliver one-for-one replacement at a national level.
Mr Shapps said: "By upping the Right to Buy discount to a maximum of £75,000 we've given hope back to thousands of council tenants who want to own their home, and for the first time in years, social housing is on the move.
"For every extra property sold under Right to Buy we're giving councils the flexibility to build the homes they need, where they need them - or to work with us to ensure every penny raised through the scheme goes towards housebuilding. I've listened to their views, and they now have three years to make the most of the extra funds the scheme will bring."
(CD/GK)
