Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether she plans to make changes to the (a) Housing Revenue Account model and (b) Right to Buy scheme.

The government recognises that changes in rent policy, inflationary pressures, and increased costs associated with investing in existing stock since 2012 have led to increasing strain on Housing Revenue Accounts. The principle of self-financing remains the right one but we are committed to working with councils to overcome the pressures on their Housing Revenue Accounts and to supporting them to make a greater contribution to social and affordable housing supply.

This government is also committed to the Right to Buy. We want to ensure that council tenants who have lived in, and paid rent on, their social homes for many years can retain the opportunity to own their home. However, reform of Right to Buy is essential to better protect much-needed social housing stock, boost council capacity and build more social homes than we lose, supporting the government’s commitment to deliver the biggest increase in social and affordable housebuilding in a generation.

We have returned the maximum cash discounts to between £16,000 and £38,000 and we are allowing councils to keep 100% of the receipts from sales so that they are better able to build and buy new homes. We consulted last autumn on further reforms to the Right to Buy, including increased protections for new builds and changes to eligibility requirements. The consultation is now closed, and the government will set out next steps shortly.

We will also set out more detail of our future investment in social and affordable housing at the Spending Review next week.