Decision details

Voluntary Right to Buy

Reference: D738

Decision Maker: Portfolio Holder for Sustainable Growth and Economy

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

To update the Portfolio Holder for Growth and Regeneration on proposals to launch a pilot Voluntary Right to Buy scheme in the East Midlands.
To seek the Portfolio Holder for Growth and Regeneration’s support of the Council’s strategic approach to the East Midlands pilot.
To propose a further report is provided to the Portfolio Holder for Growth and Regeneration when the findings of the pilot are circulated.

Decision:

•The strategic approach of the Council is not to support the sale of housing association properties, unless the Housing Association has demonstrated to the Council that there are exceptional circumstances which justify disposal of the affordable home.
•The Portfolio Holder receives a further report detailing the findings of the East Midlands Voluntary Right to Buy Pilot when it has concluded in March 2020 and the subsequent findings are published.

Reasons for the decision:

•Supporting VRTB has the potential to result in the loss of affordable homes in the borough at a time when there is significant demand for affordable homes.
•There is a risk that any replacement homes may not be in the borough, be of the same type, of the same size or of the same tenure and that there may be a delay in the provision of the new homes.
•There is a potential risk for new owners to lose their homes and present to the Council as homeless, as well as potential for exploitation of the scheme.
•There is a risk of tenants without a local connection to the borough using their portable VRTB discount to purchase properties in the borough.
•There is a risk that clauses relating to future sales, sub-letting or the right of first refusal are not included in the contract for sale by HA’s, and therefore these obligations would not be enforceable.
•The need to provide a consistent response to all housing associations.
•As this is a pilot scheme, a further report on the findings will be undertaken to ensure Councillors are updated of potential changes in the social housing sector.

Alternative options considered:

To give approval for the potential disposal of properties in the Borough as part of the East Midlands Voluntary Pilot Right to Buy - not recommended due to the significant need for affordable housing in the borough and the concerns set out above that affordable housing properties may be sold to residents from outside of the borough and / or the replacement homes delivered by HA’s will not be provided in the borough resulting in a loss of affordable housing.

Publication date: 13/08/2018

Date of decision: 13/08/2018

Accompanying Documents: