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11/08/2016

Right To Buy Scheme In Need Of 'Urgent Reform' - LGA

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The Right to Buy (RTB) scheme is in need of "urgent reform" to ensure councils can replace sold housing quickly and effectively, according to the Local Government Association (LGA).

New figures by the organisation show that under RTB in England, the rate local authorities have been able to start replacing homes fell by 27% compared to last year.

In addition, the LGA said national restrictions are "increasingly hampering" councils' ability to build. In its manifesto pledge, the Government stated it will escalate RTB to include high value council owned property in Britain.

Cllr Nick Forbes, LGA Senior Vice Chair, said: "Current RTB arrangements are restricting councils from being able to replace homes being sold under the scheme. RTB will quickly become a thing of the past in England if councils continue to be prevented from building new homes.
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"Housing reforms that reduce rents and force councils to sell homes will make building new properties and replacing those sold even more difficult.

"If we are to stand a real chance of solving our housing crisis, councils need the funding and powers to replace any homes sold under RTB quickly and reinvest in building more of the genuine affordable homes our communities desperately need.

"Alongside the ability to borrow to invest in housing, councils need to be able to retain 100 per cent of receipts from sales, combine those receipts with other funding to build replacements and set RTB discounts locally so they reflect the cost of houses in the area."

With the association forecasting a rise in both homelessness and the housing benefit bill under current conditions, construction union UCATT has reiterated its call to scrap the RTB scheme.

UCATT Acting General Secretary, Brian Rye, said: "Millions of people in the latter half of the 20th century found safety, security and happiness living in social housing. That haven is being crushed by Tory social engineering as they seek to sell off our nation’s assets. It is utterly shameful and will have a lasting and detrimental impact on the fabric of this country.

"We welcome the stance of both the Scottish and Welsh Governments in banishing right-to-buy and call for all right-minded individuals in England to lobby to save our social housing."

(LM/CD)

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