New 'Right to Transfer' power will encourage building of affordable homes says Government

The powers, which will come into force in the autumn and are known as 'Right to Transfer' powers, will give social housing tenants the opportunity to take control of future investment into their communities, the Department for Communities and Local Government (DCLG) said.

The new right will allow tenants of social housing to demand that local authorities consider disposing of social housing to a registered provider of social housing. Social housing providers will need to show clearly how they will offer value for money for taxpayers and how the process will lead to the building of new affordable homes and the improvement of existing housing stock.

"The new Right to Transfer is a win-win offer for tenants, giving them the chance to decide who owns and manages the homes they live in, and a commitment to new affordable homes being built in their area" said Housing Minister Mark Prisk. "I want to see tenants making full use of the rights at their disposal, and councils standing ready to work with them to maximise any deal's potential to meet local housing need."

Mr Prisk has said that the arrangements could be supported by a share of up to £430 million of Government funding to cover the costs incurred by the transfer of the housing to the registered provider.

The new power is part of a raft of measures that the Government hopes will increase house building and, in particular, the delivery of affordable housing.

The Government has stated that it intends to lay the regulations that will bring into force the new Right to Transfer before Parliament in the autumn. It also intends to publish statutory guidance on the Right to Transfer at the same time.