link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • ESG
  • E-books
  • Get In Touch
  •    
  • Work with us
  •  
  • Portal Login
Impact of Right-to-Buy Legislation on Supply of Social Housing

Written by: Lee Harle 24/01/2023
  743       0
Responsive image

Impact of RTB Legislation on Supply of Social Housing

The UK is battling a cost-of-living crisis amid an unprecedented housing shortage. The Housing Act of 1980 empowered local authority tenants to purchase properties at discounted rates. Interestingly, the legislation resulted in the growth of the private rental sector instead of boosting home ownership. The drop in home ownership is also because of a steep rise in house prices and higher private-sector rents. This makes it difficult to save enough funds for a mortgage deposit. According to a report, many private rental homes were former council homes.

t-of-living crisis. Tenants of council homes can get a substantial return for paying rent for several months as they become property owners. The right to buy reduces dependency on the state. The person can sell the home after three years with no obligation to repay the discount.

A rise in unjustified works bills

A rise in unjustified works bills

A wave of enormous repair bills is hitting leaseholders out of the blue. It is common for leaseholders to receive bills as high as £100,000 and more. The reason for such high demands is the lack of reserve funds, as there is no control over how they spend their money. Councils are reluctant to build social rent homes as they are skeptical about losing the investment when they have to sell the properties at a discount.

Right-to-buy legislation has done more harm than any benefit for the social housing sector, as investors own most of the ex-council property in London and elsewhere. The Right to Buy scheme failed as it did not boost home ownership. Greedy property investors are quick to exploit the situation by luring elderly council tenants with funds to help them exercise their right to buy. This is on the condition that they purchase the property at resale.

Merits of the Right to Buy

Merits of the Right to Buy

Individuals who were public sector tenants for a minimum of three years qualify for the right-to-buy scheme provided it will be their only property. There was impressive growth in home ownership, resulting in the sale of 1,992,799 council homes under the right-to-buy plan. People who exercise their right to buy become more responsible citizens while striving to keep their neighborhoods trash-free and clean.

Right to buy is a lucrative option because liberal discounts help people become homeowners despite the cos

Demerits of the right to buy

Demerits of the right to buy

A major disadvantage is that it is not possible to maintain the number of homes by building new ones. For example, against the sale of 53,000 homes in 2000, there were only 18,000 newly built homes. The main disadvantage of the right to buy is the shortage of social housing. The number of affordable housing units in the UK dwindled to 4.2 million from 5.5 million when the government introduced the scheme. The 2018 Midlands Pilot attempted to replace right-to-buy homes on a like-to-like basis but miserably failed because of the inadequacy of funds.

The devastating impact of the right to buy

The devastating impact of the right to buy

The rampant abuse of the right-to-buy is clear from the fact that investors now own over 40 percent of right-to-buy homes. The right-to-buy scheme has benefitted investors and helped the private rental sector flourish. It is high time the government mandated owner-occupation for the right to buy homes, as the very purpose of the scheme was to boost home ownership.

The Right to Buy scheme encouraged the proliferation of expensive private rental housing that lacks regulation and control. It was supposed to boost homeownership among young people but failed miserably. The government must take steps to control the private sector instead of considering the extension of the Right to Buy to tenants living in housing associations. The time is ripe to consider scrapping the Right to Buy scheme to restore the supply of affordable housing.

Looking Forward: The Need for Comprehensive Housing Policy Reform

To address the housing crisis, it's crucial to revisit and reform policies like the Right to Buy, which have inadvertently exacerbated the shortage of affordable social housing. A balanced approach, combining greater investment in social housing construction, better regulation of the private rental market, and more effective mechanisms to ensure long-term affordability, is necessary. Scrapping or reforming the Right to Buy could help reinstate a steady supply of social housing, benefiting future generations in need of affordable homes.



Property Management Block Management
POPULAR POSTS

Solar panels on flats - what you need to know

Is noise getting you down?

Ground Rent: Fines for Landlords Who Charge Ground Rent

High Court: Right to Rent does breach human rights

Landlords beware - Don't believe everything you read!

RECENT POSTS

UK Leasehold Reform: Moving Towards Commonhold Ownership

Government to Introduce Single Construction Regulator by 2028 in Response to Grenfell Inquiry

Real Estate Experts Urge House of Lords to Amend Renters Reform Bill

Real Estate Developers Boost Investment in UK Student Accommodation Sector

Changes to Right to Manage Rules Announced Under Leasehold and Freehold Reform Act 2024



Blogs related:

ASSET MANAGEMENT
What Does the UK's Environmental And Economic Vision Of UK Encompass
Rt Hon John Glen MP, Chief Secretary of the Treasury, unveiled the UK’s vision for a sustainable and prosperous future, emphasizing the urgent need to address the decline in biodiversity and the misuse of natural resources. The UK is facing alarming statistics, including a 69% drop in wildlife populations and an 83% decline in freshwater species over the last 50 years.

Read


ASSET MANAGEMENT
Two new ways to speed up the homebuying process - we hope!
The launch of HM Land Registry’s first Digital Identity Standard on12 March sets the scene for conveyancers to check homebuyers’ identity online for the first time. This is good news for homebuyers because it means that in future identity verification can be done ‘anytime, anyplace, anywhere’, as the old song goes. So no need for a face-to-face meeting and the opportunity to speed up what is often a lengthy process. The new standard also gives...

Read


ASSET MANAGEMENT
Ringley gives a cautious welcome to Budget
Property industry commentators gave a cautious welcome to Chancellor Rishi Sunak?s first Budget yesterday as he repeated the Conservative party?s new mantra ?We?re getting it done?.For housing he pledged:a new £12 billion multi-year extension of the Affordable Homes Programme ? a £3 billion boost to the current programme which was put in place in 2016 and ends next year.  an extra £650m of funding to help rough sleepers into permanent hou...

Read


Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Anthony Kingdon MIRPM AssocRICS MD Blocks/FM Management (North Region)

Stakeholder engagement. Mixed tenure specialist. Budget management. Plant audit, PPM compliance.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Steve Norman Planning Director

Land due diligence (opportunities & constraints) Has contributed to a number of award winning schemes.


inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
link to ringley social media x-twitter for small device
link to ringley social media linkedin for small device
link to ringley social media instagram for small device
link to ringley social media facebook for small device
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Email: solutions@ringley.co.uk

  • Emergency line 1: 0207 428 2056

  • Emergency line 2: 0207 267 2900

  • Report an incident
  • Our Offices
  • London
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • London
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
Privacy Policy
Ringley Staff Dashboard
link to ifsm website link to tpi website link to tpos website link to rics website link to ukgbc website link to government security industry authority website link to alep website

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment