In a new blog, Rural Housing Enabler, Russell Moore, explores why right-to-buy reforms offer renewed hope for rural communities.

 

In July, the government published its document ‘Delivering a decade of renewal for social and affordable housing’, which set out its plans to alleviate the housing crisis by boosting the supply of affordable housing.

One key element of these announcements is changes to the Right to Buy, a policy introduced under the Housing Act 1980 by the then-Conservative government, which allowed eligible council tenants to purchase their homes at a discounted price.

Right to Buy has clear benefits, enabling greater social mobility and opportunity for families who otherwise would not have the means to own their own home. However, it has led to the loss of nearly 2 million social rented homes since its inception. This has significantly reduced the availability of affordable housing for those most in need and can exacerbate homelessness.

 

What is changing?

Prior to this announcement, the government had already taken steps to protect council properties by reducing the maximum cash discounts available to tenants and allowing councils to keep 100% of Right to Buy receipts to help them invest in new stock.

But the latest proposals go further, with the following key changes:

• Longer protection for new homes: New council homes will now be exempt from Right to Buy for 35 years, up from the previously considered 10–20 years.
• Stricter eligibility: Tenants will need to have held a council tenancy for 10 years (up from 3) before they can access Right to Buy.
• Lower and slower-growing discounts: Discounts will start at 5% and increase by 1% for every year that the tenancy continues, and they will be capped at 15% or the national cash limit – a significant reduction from previous levels that have reached up to 70%.
• Improved financial flexibility for councils: Councils will permanently retain the full share of Right to Buy sale proceeds and, from 2026/27, will be allowed to combine these receipts with grant funding to support new housing delivery.

 

How this impacts rural Cambridgeshire

In the county of Cambridgeshire, roughly 21,000 properties have been lost through Right to Buy, so the scheme has had a significant impact. However, most local authorities in the region have now transferred their stock to housing associations. While they are subject to a separate scheme – Right to Acquire – this is already less favourable than Right to Buy and, importantly, it does not apply to homes built on rural exception sites, where homes remain affordable in perpetuity.

The local authorities that have retained their stock are South Cambridgeshire District Council and Cambridge City Council. Today, South Cambridgeshire District Council, which manages a largely rural area encompassing over 100 villages and still develops some affordable housing, owns around 5,500 properties but it would have significantly more if it were not for the scheme as it has sold 4,553 properties up to 2023/24.

While sales have slowed over the last two decades, with an average of 17 properties being sold per year since 2005/6, small numbers can still have a substantial impact. Just a few sales in villages that may have had only limited social housing in the first place can significantly reduce the amount of affordable housing options available to local families, key workers and older residents.

 

A step in the right direction

It is hoped that the revised discount structure, alongside stricter eligibility criteria, will help slow the overall pace of Right to Buy sales.

In the case of rural exception site developments, most new affordable homes are delivered by housing associations and, as noted above, are already protected from being sold. However, for those built by councils, the extension of the exemption period to 35 years offers an added layer of security, ensuring these homes remain available to meet local needs well into the future.

These changes are particularly important in rural areas, where the gap between local incomes and house prices is especially wide, and the need for affordable housing is acute. Crucially, it also costs more to build social housing in villages and takes longer, so with local authorities being able to retain receipts and utilise them flexibly, this could make it easier to bring forward new homes that are tailored to meet the specific needs of individual villages, be they starter homes for young families or bungalows for older residents – something that Cambridgeshire ACRE strives to support.