Decision details

Through the Right to Buy one-for-one agreement the Council has with Government, we are able to keep a greater share of the capital receipt that arises when tenants exercise their right to buy their council house. Over the past three years the average right to buy one-for-one receipt has been £781,000 per year, which is an important source of funding for the HRA Capital Programme. Under the agreement this funding must be used for the purchase or building of new homes for rent at social or affordable rent levels.
Following a consultation, Government has offered the Council a revised Right to Buy Agreement, which provides additional funding for the Council's New Supply Programme.
This officer decision summarises the reason the Council has agreed to sign the new contract.

The new agreement gives the Council greater flexibility in how this funding is used. It:
• Increases the proportion of a development costs the funding could be used for, from 30% up to 40%.
• gives longer to spend the funding - 5 years instead of 3 years previously.
It also limits how many properties can be purchased from the open market using right to by receipts, but is not expected to impact NWLDC significantly as the first 20 acquisitions in a year are not subject to the cap.

The only alternative option available would be not to sign the new agreement. The Department for Levelling Up, Housing and Communities have stated that doing so would result in the termination of the Right to Buy Agreement, with the Council losing the funding for its New Supply programme as a result.