Extending Right to Buy to Housing Association Tenants
This Assembly notes the Mayor’s recent statement that the proposal to extend the Right to Buy to housing associations tenants “will only work for London if it delivers more homes - and more low-cost homes – [and] makes sure that the cash from the sale of any council homes stays firmly in London and is used to build more homes for Londoners” adding that he did not want to see London’s “great mixture of socioeconomic groups” displaced as a result of the policy.
This Assembly further notes that the rate of replacement for council homes sold under the Right to Buy scheme since the the maximum discount was increased in 2012 has been closer to one in ten, despite a commitment to ensure that the receipts from every additional home sold would be used to fund its replacement on a one for one basis.
This Assembly is furthered concerned that the way the policy is to be funded – through forcing local councils to sell off their most valuable properties – may result in many new council properties being sold off almost as soon as they are built, instead of being let to local residents in housing need.
This Assembly believes that the proposal to extend the Right to Buy to housing associations tenants in London risks undermining other efforts to increase the supply of new affordable homes across the capital.
This Assembly is concerned by the Mayor’s failure to respond to its motion – agreed at Mayor’s Question Time on 21 May 2015 – calling on him to commission an assessment of the implications of an extended Right to Buy for housing associations in London.
This Assembly therefore calls on the Mayor to provide an oral update to the Assembly at the earliest opportunity confirming whether or not he intends to commission an assessment of the implications of extending Right to Buy to Housing Association tenants in London, and if not, to provide a list of reasons for his decision.
 See transcript of Mayor speaking in response to MQ2015/1210 [‘Right to buy’ for housing association tenants in London]:http://www.london.gov.uk/moderngov/documents/s46961/Minutes%20-%20Appendix%202%20-%20Transcript%20of%20Item%204%20-%20Questions%20to%20the%20Mayor.pdf
 Institute of Fiscal Studies (IFS) Briefing Note BN171:http://www.ifs.org.uk/uploads/publications/bns/BN171.pdf
 See the minutes of the meeting of the London Assembly held on 21 May 2015: http://www.london.gov.uk/moderngov/mgAi.aspx?ID=18095