The Right to Buy extension will ‘re-cast’ the
relationship between local authorities and housing associations, councils have
said. In return for the discount, there will be more flexibility to build homes
for other tenures such as shared ownership and “portable discounts” for certain
properties. John Bibby, chief executive
of the Association for Retained Council Housing, said if associations replace
homes sold under the policy with low-cost home ownership homes, it could change
the relationship with local authorities. “We will have to wait and see what
that means for traditional type of agreements where councils gift land or
provide discounted land to associations in return for nomination rights,” he
said. He warned if associations become more commercial, councils could treat
associations “like any other developer”.
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