Councils are calling for the government to adapt the new right to buy policy, amid fears authorities that have transferred properties to housing associations will be unable to pay for replacement homes. Government proposals to increase the discount available to council tenants looking to buy their homes apply to around 600,000 people with preserved right to buy, living in homes owned by large-scale voluntary transfer organisations. However, agreements made between councils and LSVTs at the time of transfer over how future right to buy sales are distributed mean councils that have transferred stock will be in a much worse financial position than those that have not. While LSVTs tend to retain a set amount of sales receipts to offset loss of rents, councils are left with the remaining sale price. Large discounts of up to 50 per cent will reduce this receipt, casting more doubt on the ability of some councils to deliver the one-for-one replacement housing promised by the coalition government. Read more on Inside Housing.
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