Over one third of Local Authorities don't sign up for Right-to-Buy cash

The Government's "revamped" Right-to-Buy model was launched in April and offers council tenants a discount on buying their home, however many Councils have not signed up to the Government's scheme following a disagreement on its terms.

The new Right-to-Buy scheme includes a discount cap of up to £75,000 and the Government has pledged to replace every home sold under the scheme with a new affordable rent home.

The new model allows England's 2.5 million council tenants discounts of up to £75,000 when buying their home. This triples the discount that was available in many parts of the country and quadruples the discount available in London.

Following consultations, the Government agreed to retain the "cost floor", which limits the discount available on a property to ensure the purchase price does not fall below what has been spent on the property. The duration of the cost floor has been extended from ten to 15 years as a result of the consultation. 

"We are reinvigorating the Right-to-Buy – to support social housing tenants who aspire to own their own home, by raising the discounts to make it attractive to tenants across England," said Prime Minister David Cameron.

The council will replace every home sold under the new Right to Buy model with a new affordable rent home, to "support tenants and help build more affordable housing", the Government said. 

The receipts from the sale of a Right-to-Buy home can be recycled by the council to acquire a new affordable rent home. Councils will also be able to buy back former council properties under the new rules and can claim around 50% of the costs from their total Right-to-Buy receipts. 

The new model for Right-to-Buy will allow Councils the choice to decide on the type, size and location of its new homes, the Government said. So this can be judged against local needs.

The remaining 47 councils yet to sign an agreement will have to pass their additional receipts into a central pot from which they will be able to bid for funding to invest in affordable homes.

Housing Minister Grant Shapps stressed the door would still be open for these councils to sign up to use Right-to-Buy cash to build new homes in their area. Those who sign up by September will be able to keep receipts from July sales onward, he said.