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Written question asked by Michael Payne (Labour) on Friday, 10 January 2025, in the House of Commons. It was due for an answer on Tuesday, 14 January 2025. It was answered by Matthew Pennycook (Labour) on Thursday, 30 January 2025 on behalf of the Ministry of Housing, Communities and Local Government.

Right to Buy Scheme: Local Government Finance

Question

To ask the Secretary of State for Housing, Communities and Local Government, with reference to paragraph 5.149 of the Autumn Budget, whether receipts from right to buy sales (a) are ringfenced for new council housing or (b) can be used for general spending by local authorities.

Answer

At the Budget on 30 October 2024, the Chancellor confirmed that local authorities can now retain 100% of their receipts from Right to Buy sales.

Approximately 65% of these receipts are conditionally retained by councils on the basis that they will be used for replacement social housing and approximately 35% may be used for any capital purpose, including for replacement housing.

In our recent Reforming the Right to Buy consultation, we sought views from local authorities and other stakeholders on simplifying the rules governing the use of Right to Buy receipts. We are analysing responses to that consultation and will set out next steps in due course.

Secondary information

Type
Written question
Reference
23201
Session
2024-26
Transferred
Yes
Subjects
Local government finance Right to buy scheme
Link
View this Written question on www.parliament.uk