Council Housing: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the potential impact of the Right to Buy and associated discounts on the value for money of grant spending on new council housing through the Affordable Housing Programme.
Answered by Matthew Pennycook
Local authorities can bid for grant funding through the Affordable Homes Programme (AHP) to support delivery of affordable homes. If a home built using AHP grant is sold via the Right to Buy, then the local authority must either recycle the relevant grant or return it to Homes England or the Greater London Authority so that it can be used for another permitted purpose, including the delivery of new homes. These requirements ensure that grant issued through the AHP is used efficiently and in a way that secures value for money. As such, we have not made a specific assessment as outlined in the question.
The Government is undertaking a rapid review of the increased Right to Buy discounts introduced in 2012 and will bring forward more detail and secondary legislation this Autumn. We will also review the Right to Buy more widely, including looking at eligibility criteria and protections for new homes and will bring forward a consultation in the Autumn.
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