Soaring house sales fueled by Right to Buy reforms boost housing optimism

In a notable development, the Scottish council is seeking private homes for social housing, marking a shift in the country's housing landscape. This move comes amidst a flurry of activity in the Right to Buy scheme, a government initiative that saw a significant surge in applications last year.

The adjustments made to the Right to Buy scheme included lowering discount levels, axing the acquisitions cap, and offering a longer cost floor protection period. These changes, introduced by the government, have sparked a wave of applications, with two thirds of Right to Buy applications being lodged in the three weeks following last year's autumn budget.

Cllr Tom Hunt, chair of the LGA's inclusive growth committee, supports these reforms, viewing them as a positive step for councils to maintain and grow their housing stock. He further calls on the government to remove restrictions on Right to Buy receipts and allow councils to set discounts locally.

The newfound optimism about council housebuilding is palpable, with 48% of respondents reporting increased optimism in a recent survey. Moreover, just under a quarter of respondents said that new projects have become viable since the reforms became available.

However, budget constraints continue to pose a challenge, with 52% of councils noting that these constraints block new housing schemes, particularly within housing revenue accounts. In light of this, Cllr Hunt urges the government to take further steps to empower local government to deliver the homes needed.

Meanwhile, in a separate development, a developer has won an appeal to build 115 new homes in Yaxley. The exact details about who submitted applications for social housing construction to private companies in Scotland remain unclear.

New research from the Local Government Association shows a surge in Right to Buy applications in 2024/25, with an average of 527 applications submitted per council. This trend underscores the growing interest in the Right to Buy scheme and the potential for increased housing stock in the coming years.

As the housing landscape evolves, it is clear that both the government and local councils are taking active steps to address the housing crisis and provide affordable homes for those in need. The future of social housing in Scotland and beyond remains a topic of ongoing discussion and development.