Retained Right to Buy receipts and their use for replacement supply: guidance
This document provides guidance on how local authorities can use the money raised from Right to Buy sales (“Right to Buy receipts”) to deliver replacement homes.
Applies to England
Documents
Details
This guidance incorporates the changes to the Right to Buy (RTB) pooling system that have happened since 1 April 2021. It takes account of the amended terms of the Retention Agreements to be concluded between the Secretary of State and authorities under section 11(6) of the Local Government Act 2003 to enable them to retain RTB receipts, and the amendments to the Local Authorities (Capital Finance and Accounting) Regulations 2003 that came into force on 30 June 2021.
The guidance now includes the increased flexibilities on the use of RTB receipts which were announced on 30 July 2024 for the two financial years 2024-25 and 2025-26:
- The maximum permitted contribution from RTB receipts to replacement affordable housing has increased from 50% to 100%.
- RTB receipts will be permitted to be used with section 106 contributions.
- The cap on the percentage of replacements delivered as acquisitions each year (currently 50%) has been lifted.
Updates to this page
Last updated 30 July 2024 + show all updates
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The guidance has been updated to include the increased flexibilities on the use of Right to Buy receipts which were announced by the government on 30 July 2024.
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The updated guidance includes the provision that authorities may retain their Treasury share for the 2 financial years 2022-23 and 2023-24 (paragraph 13) and the acquisition cap has been frozen at 50% for a further 2 years (paragraph 35).
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First published.