Council representatives have expressed concern that government plans to relaunch the right to buy could jeopardise housing finance reform. The Association of Retained Council Housing is concerned that proposal to change local government debt settlements may jeopardise plans for councils to take local control of housing resources and make long term business plans. As part of housing finance reform the government has assumed a continuation of low level of RTB sales. The Treasury will retain 75 per cent of future receipts but will adjust HRA debt settlements to reflect the loss of future rental income. The current debt settlements assume that just 8 per cent of existing stock would be sold over the next 30 years, meaning councils were compensated to the tune of £850 million for loss of rent. Read more on the ARCH website.
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