Some 120 English councils have signed up to the revamped Right to Buy scheme, which allows authorities to invest sales proceeds into building new housing.

Constructionenquirer.com reports that 120 out of the 167 councils that retain housing stock have signed up for the deal, which is aimed at 2.5 million council tenants who wish to become home owners.

Reinvestment into building new homes

Under the deal, councils can offer discounts of up to £75,000 to council tenants, who can then reinvest the money into building more homes. Councils are now free to decide on the type and size of home they build – possibly including features like solar panelling or internal wall cladding – or they can join forces with housing associations to deliver new homes.

Government hope to stimulate house building

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By revamping the scheme, the Government hopes it will stimulate house building across the country.

Housing minister Grant Shapps commented on the scheme to egovmonitor.com:

“The reinvigorated Right to Buy has given hope back to thousands of aspiring council tenants who want to own their own home – and for the first time, every extra home sold will be replaced on a one for one basis.

“So I’m pleased that 120 councils have seized this prime opportunity to refresh their housing stock by signing up to keep the cash from sales in their area,” he added.

Author: Ashley Curtis    Date Written: 03 July 2012