Changes to the Modernised Right to Buy
Elderpark is seeking to hold onto our stock for future
The modernised Right to Buy (RTB) was extended to Housing
Association tenants by the Housing (Scotland) Act 2001. This
right was suspended until September 2012. The same Act gave
Scottish Ministers powers to extend that suspension. The
Scottish Government has now set out the requirements which the
Association need to clarify in order that this suspension may be
Elderpark Housing Association is in the process of developing a
case for consideration by the Scottish Government to extend the
suspension. The Association believes that a large increase in
the number of RTB sales may be detrimental to the objectives of the
Association. These are detailed below.
- The demand for our housing is increasing and is projected to
increase further with changes in homeless legislation, yet the
supply will decrease because the Association is unlikely to build
new housing to replace those sold under RTB.
- The decrease in the level of Housing Association Grant funding
means that the Association is unlikely to be able to afford to
build new units. This means that we cannot replace houses
sold under RTB.
- The Association has increased substantially our loan portfolio
to invest in new build developments and therefore proportionately
the level of rent needed to service this debt. RTB sales will
reduce the rental income we collect which may result in the
Association being unable to meet the conditions attached to these
large loans. Should this occur banks may charge higher
interest rates because lending to the Association would be viewed
as being more risky. Higher interest rates mean that there is
less money available to invest in property and services.
- RTB sales can result in an increase in private rented
accommodation, which in traditional tenemenal stock can result in
management problems associated with managing anti social behaviour
and paying for communal planned maintenance.
- A large increase in the number of RTB may depress demand for
new build home ownership in the immediate area. The knock on
effect may be that brown field sites in Greater Govan may become
less economically viable to develop. This in turn may
hamper the physical and economic regeneration of Govan.
If you have any views we would like to hear from you.
Please email firstname.lastname@example.org or phone
us on 0141 440 6156 and ask to speak to Aidan.