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Over £350,000 of Right to Buy cash to support purchase of affordable homes

Published on Thursday, December 20, 2018

PLANS to use over £350,000 of Right to Buy cash to help provide more affordable homes have been announced by Leicester City Council.

The city council will provide £362,500 of funding to Ross Walk Housing Co-operative to support the purchase of five new affordable rent homes in the Belgrave area.

In return, the council will be able to nominate people from its housing register for the new homes. Ross Walk Housing Co-operative will meet all costs for maintaining the properties.

Whenever a council property is sold under Right to Buy, the proceeds of the sale must be used in line with strict Government guidelines. This means only some of the proceeds – up to 30 per cent – can be used to support the supply of new affordable homes for rent.

City Mayor Peter Soulsby said: “By using our Right to Buy receipts in this way, we can continue to ensure that much-needed new homes are available at affordable rents across the city.

“There is little doubt that the Right to Buy scheme has hit the supply of council housing hard. We’re losing homes much faster than they are being built and it’s time Right to Buy was abandoned.

“In the meantime – and alongside the multi-million investment the council is making in new homes – it is vital that Right to Buy proceeds continue to be carefully invested to provide more affordable homes for rent.”

This new cash is in addition to the £8million to help buy 50 affordable homes across the city that was announced last month. This includes £2.4m of Right to Buy cash, £1.6m from the council’s capital programme and £4m of borrowing against future income from council rents.

The council is also setting up its own housing company – Housing Leicester Ltd – and will invest over £50million in building around 370 new homes across the city over the next three years.

There are currently over 6,000 households on the council’s housing register seeking affordable homes for rent.