A study conducted by the New Economics Foundation (NEF) as part of the Homes for Us alliance reveals that a substantial portion of council homes sold under the right to buy scheme are now being let on the private market. Published today, the research indicates that 41% of such properties have transitioned to private rentals. The findings, obtained through NEF’s Freedom of Information requests, depict a 3.2 percentage point increase since 2014/15, amounting to approximately 109,000 more former council homes now under private rental agreements.
According to the report, the right to buy scheme has significantly exacerbated the housing crisis in the UK. The proportion of social renters has nearly halved since the scheme’s inception in 1980, plunging from 31% of English households to a mere 16% in 2022/23, as per data from the English Housing Survey. Consequently, tenants who would have traditionally relied on social housing now face the burden of seeking accommodation in the expensive, insecure, and often substandard private rental sector.
Moreover, the study highlights a failure of the right to buy scheme to fulfil its intended objective of promoting owner occupation. Between 2014/15 and 2022/23, the number of additional homes sold under the scheme (119,000) roughly corresponds to the increase in former council homes now in private rental arrangements (109,000).
Hollie Wright, assistant researcher at the New Economics Foundation, remarked, “While many have benefited from it, we need to be honest about the devastating impact the right to buy scheme has had on our housing system.” She emphasized the urgent need for local councils to regain control and address the repercussions of the scheme.
Conor O’Shea, policy and public affairs manager at Generation Rent, echoed similar sentiments, stating, “It is no surprise that the haemorrhaging of homes from the social sector to the hands of private landlords has been a failure for those who actually live there.”
The research identifies specific local authorities with a notable percentage of homes sold under right to buy now being privately let. For instance, in Brighton, 86% of such properties are privately rented, followed by Milton Keynes with 73%, and Dover with 59%.
The report advocates for reforms to empower local councils to mitigate the adverse effects of the right to buy scheme. Recommendations include suspending right to buy in areas experiencing affordable housing shortages, ending right to buy for newly built or acquired homes, and preventing sold right to buy homes from entering the private rental sector. Additionally, the report suggests amending Treasury rules to facilitate the utilization of funds from sold homes for building replacement council properties.