Councils Unhappy Over Right to Buy

Councils have attacked the government’s reinvigorated right to buy policy, saying limitations on how replacement homes can be funded will ‘hold back development’.  A Local Government Association spokesperson said: "Council leaders continue to have reservations about the right-to-buy model which the Government has now decided upon.  Right-to-buy can help some tenants buy their home but doubts remain about the viability of every area replacing one house sold under right-to-buy with another, given that councils will be unable to decide the right-to-buy cap locally.  The LGA had pressed for councils to be given more time to spend the receipts from sales, so this change is a positive step."However, by preventing councils from including their own land as part of their share of the cost of new homes, this will prevent them building as many replacement properties. Furthermore, limitations on the ability of town halls to borrow money will also hold back development. Council chiefs will continue to press the Government for a review of the right-to-buy policy after one year and for greater flexibility over borrowing to allow them to build enough homes in their local areas."