Ministers are set to insist on withholding 30% of
compensation payment for Right to Buy discounts until replacement homes are
started. Associations, in negotiations with ministers on the details of the voluntary
scheme, have been pushing against plans for the government to pay 70% of the
compensation on sale and the remainder when a replacement home is started.
However ministers will not budge on this point as they want a lever to ensure
replacement homes are built. Although the NHF insists the deal with government
is for full compensation even if homes are not replaced, the emerging split
compensation plan is causing concern that associations might not in some
instances be able to receive the full open market value of the homes they sell
under the scheme. Read more on Inside Housing.
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