In April 2012, the scheme was reinvigorated by improving the discounts available. Prior to the changes some areas were subject to a maximum discount of £16,000 which has now risen to £77,900 across England and £103,900 in London.
Close to £964m in sales receipts received since 2012 are earmarked to be reinvested into building new homes. The government is heralding the number of homes added to the social housing stock as a success.
Housing minister Brandon Lewis said the scheme was getting homes built ‘with councils replacing the additional homes sold on a one-for-one basis’. The government’s one-for-one claim is based on the 3,054 homes sold in the first year of the revamped scheme.
Housing charity Shelter has raised concerns about the government’s plans to extend the scheme to more people by forcing housing associations to sell off their most valuable stock.
The proposed scheme, currently being debated in parliament, would see the money used to fund new discounts for future housing tenants generated from the Right to Buy homes.
But the scheme has been criticised for failing to add up.
Shelter’s report revealed that even when homes are sold, a £2.45bn shortfall over four years would be left, creating a gap in funding for the discounts of further house purchases and replacement stock.
