Extending The RTB: Deal Or No Deal?

The extension of the Right to Buy (RTB) to housing association tenants is to be funded by the compulsory sale of local authority housing assets. However, it would appear that local authorities are to be nothing more than interested spectators to the voluntary deal that seems to have been struck between the government and the National Housing Federation (NHF) - details of which are currently being put to housing associations. The NHF offer document says: "In line with its manifesto commitment, we anticipate the government would put in place arrangements to manage the financial costs of the policy to ensure that the cost of sales does not exceed the value of receipts received from the sale of high value council assets". Given that the government have not yet honored the promise that the government "will consult on whether to cap expensive properties by region or by smaller housing market areas", this seems to be putting the cart before the horse! Until that consultation is completed, the government cannot be clear on the value of receipts that would be generated by the sale of "high value council assets" or whether this will be sufficient to cash flow the take up of RTB by housing association tenants. Read more on the ARCH website.