Inside Housing – News – London Right to Buy sales are at their lowest in years, according to latest statistics

The data also shows that sales in all regions fell last year. Although London had one of the highest numbers of RTB sales, there was still a year-on-year decline.

The number of sales in the capital was 1,081, the lowest since 2013.

The capital also has one of the lowest sales rates compared to its real estate stock – just above the Southeast and Southwest.

The number of sales per 1,000 social housing properties in London was just 2.8%, falling slowly since a peak of 10% in 2015.

Since the inception of the RTB program in 1980, through March 31, 2024, there have been over 2,026,893 sales nationwide through RTB.

A spokesperson for the Department of Housing, Communities and Local Government said: “As part of our mission to get Britain building again, we will build 1.5 million homes during this parliamentary term and create the biggest wave of social and affordable housing in a generation.

“Our ambitious plan to increase overall supply will make homes more affordable and we will work with councils to replace homes sold under Right to Buy.”

Labour’s manifesto included a commitment to “prioritise the construction of new social homes for rent and better protect our existing stock by reviewing the increased RTB discounts introduced in 2012 and increasing protections on newly built social housing”.

One expert believes the drastic drop in RTB sales could be due to higher borrowing costs, which would have also affected the decline in overall property sales last year.

Alex Diner, senior housing researcher at the New Economics Foundation (NEF), said: “While higher borrowing costs are likely behind this reduction in Right to Buy sales, the scheme still requires serious reform.

“Right to Buy continues to have a chilling effect on councils’ ability to build new homes. Powers should be devolved to councils, who know their areas best, to tailor the policy to local circumstances. The receipt system should also be reformed to allow councils to replace homes that are sold.

“These reforms would allow Right to Buy to help solve the housing crisis, rather than contribute to it, as it currently does.”

The NEF had previously called for the transfer of the Right to Buy after research published in May provided an update on how many homes sold under the policy are now in the hands of private owners.