WIREDGOV

While recent reforms of Right to Buy (RTB) precipitated a sharp uptick in applications from people wanting to buy their council houses, local authorities see long-term benefits from them for boosting their stock of social housing, a new survey by the Local Government Association has found.

The survey, delivered in partnership with the County Councils Network and District Councils Network, sought to understand the impact of changes to RTB by the Government in 2024.

The changes included the reduction of discount levels, increased flexibility in the use of receipts, an increased cost floor protection period, and removal of the acquisitions cap. 

They were introduced to protect social housing stock and give local authorities more flexibility and control over the scheme in their areas.

The LGA has long called for reform to RTB, with a view that the system could be improved to support the replacement of sold homes and to stem the continued loss of existing stock.

As a result of the changes, many councils feel more positive about housebuilding in their area and that they will be able to invest more in their housing stock.

The survey found that:

• On average, a total 527 RTB applications were received per authority in 2024/25. 
• Two-thirds of RTB applications (67 per cent) in 2024/25 were received in the three weeks immediately following the announcement of changes at the Autumn Budget, before the reduction in discounts came into effect. 
• Just under half of councils (44 per cent) had made use of the increase in the maximum permitted contribution to the development of new stock from RTB receipts already, and many called for the further extension of this flexibility beyond the 2025/26 financial year, which Government have now committed to in their consultation response.
• Around half of all respondents (48 per cent) felt more positive about council housebuilding to a great or moderate extent as a result of reforms introduced in the past year. 
• Just under a quarter of respondents (23 per cent) reported that new housing stock schemes had been unlocked or become viable due to recent reforms. 

Despite the positive reforms, around half of councils (52 per cent) reported that they have not been able to unlock any new schemes yet. Respondents emphasised that budget constraints on the Housing Revenue Account (HRA) remained a barrier to the viability of new schemes. 

To build on these reforms, the LGA is now calling on the Government to remove the time limit on the use of Right to Buy receipts, and for councils to have the ability to set discounts locally.

Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said: 

“This survey shows that despite a short-term spike in applications of council houses, these reforms will have a positive impact for councils over the long term. 

“Local government is central to addressing the housing crisis that the country is facing, and these reforms will help councils maintain their existing housing stock, as well as expanding.

“The Right to Buy reforms are a step in the right direction for councils as they seek greater control over their housing stock, but we urge government to go further to ensure that the local government is fully empowered to deliver the homes we desperately need.”

Cllr Richard Clewer, Housing and Planning Spokesperson for the County Councils Network, said:

 “England’s counties contain some of the most unaffordable housing outside of London, so these reforms from government to allow county unitary councils to protect and invest in their housing stock are important.

 “These reforms are long-term in their focus, so we support both the Local Government Association and District Councils’ Network’s calls to make them permanent, particularly the ability to use 100% of Right to Buy receipts on replacement stock.” 

A District Council’s Network Spokesperson said:

"We welcome the government's comprehensive Right to Buy reforms which should make a real difference for district councils. 

“The reduced discounts, extended cost floor protection, and permanent flexibility to use 100 per cent of RTB receipts will give councils much greater confidence in their long-term housing strategies. 

“While we've seen the expected spike in applications, these reforms represent a fundamental shift towards protecting and growing our social housing stock."

Notes to Editors

The online survey was distributed via email by the LGA’s Research and Information team to all Directors of Housing within stockholding authorities in England. It was open for responses between 28 May and 30 June 2025. Among the 223 stockholding authorities in England, 73 responded to the survey – a response rate of 33 per cent.