By Chloe Fletcher, director, HQN

In the swirl of government announcements on housing last week, one might have easily missed a quiet but significant step forward: the outcome of the consultation on further reforms to the right to buy.

When the current government first came to power, they moved quickly to change the discount rules. Now they’ve gone further, with a set of changes that are both practical and progressive. I was genuinely pleased to see them land on reforms that the council housing sector has been calling for.

This is the kind of reform we’ve needed for some time. It strikes a better balance, helping long-standing tenants take that step onto the housing ladder, while also supporting councils to build more homes for the future. It’s not flashy, and certainly won’t dominate headlines, but alongside the 2018 lifting of the HRA debt cap and the new long-term rent policy announced at the last spending review, these changes lay the foundation for a real revival in council housebuilding.

Two specific changes stand out for their impact:

• The 35-year exemption for newly built homes under RTB changes the maths on decisions to build or not to build. Combined with greater flexibility in how receipts can be used with social and affordable housing grant, councils will be able to make investment decisions with more confidence. The risk is reduced. The incentive to build is clearer. Local authorities will be able to act, rather than hesitate
• The change of the eligibility requirements from three to 10 years also brings the policy back in line with its original rationale: supporting long-term tenants into homeownership, not rewarding those who’ve only recently been housed.

Similarly, the updated discount structure, starting at 5% and rising 1% per year up to 15% or the cash cap for both houses and flats, reinforces the principle that tenants earn their right to buy over time.

Another important change is the extension of the repayment period from five to 10 years. This will disincentivise properties being bought and quickly sold, often becoming private rentals. And by ensuring councils have right of first refusal on resales, indefinitely, we strengthen local authorities’ ability to manage their stock strategically, repurchasing homes where it makes sense.

However, unlike the discount rules which they could do quickly through regulations, these reforms will need primary legislation, which they have said will be brought forward when parliamentary time allows. My worry is that parliamentary time is limited, and we may have to wait some time before they’re enacted.

Unfortunately, we know this won’t be a panacea for all councils, as the need to invest in existing council homes is significant in some areas and capacity will need to be built up over time. But the mood music is changing, and many councils are now well placed to think about rebuilding their stock, developing a new build strategy for their HRA, and managing growth and expectations rather than the decline of recent years, which is a wonderful turnaround for council housing.

My only other concern, beyond possible legislative delay, is around local government re-organisation. We need to be careful that structural reform doesn’t throw a curveball in the way of all those district councils that could really do some interesting things and build significant numbers of new, much-need homes for people stuck in high-cost private rented or temporary accommodation.

There’s still work to do – but these reforms are a solid, sensible step in the right direction. Let’s keep the momentum going.