New Right to Buy rules to help London boroughs provide affordable housing and tackle homelessness

New government laws on the Right to Buy scheme will help London boroughs to provide affordable housing and tackle homelessness, according to London Councils. 

Councils were informed that they were able to keep 100% of receipts for Right to Buy in 2022-23 and 2023-24, as opposed to the former system where much of the money was returned to the Treasury instead of being reinvested into the community. 

Around 300,000 homes have been sold in London since the Right to Buy scheme was introduced in 1980 and there are currently 301,000 households on the waiting list. 

The government has also declared a two-year freeze on capping the number of existing homes councils can purchase using Right to Buy receipts, this will also help councils increase their social housing stock and provide homes for homeless residents, including households on housing waiting lists. 

According to the latest analysis by London Councils, shows homelessness rates in the capital are increasing. The group estimates 166,000 Londoners – equivalent to the entire population of a city such as Oxford – are homeless and living in temporary accommodation arranged by their local borough. This figure includes 81,000 children, meaning one in every 23 children in London is homeless. 

Cllr Darren Rodwell, London Councils' Executive Member for Regeneration, Housing & Planning, said: "These new flexibilities will provide a shot in the arm for boroughs' housing ambitions. We've long called for an end to all restrictions on how boroughs can use Right to Buy sales receipts. 

"It is crucial that every penny raised from council house sales is available locally for replacing those homes. 

"In the face of London's worsening homelessness crisis, boroughs urgently need more resources for securing the affordable housing our communities are crying out for. 

"The capital's housing pressures are the most severe in the country. This intervention is welcome, but we will continue to work with ministers to ensure boroughs get the long-term policy and funding support required for ending the homelessness crisis altogether."