by The info on Proper to Purchase offered on this launch is complemented by the Proper to Purchase gross sales and replacements in 2021-22 statistical launch which was printed in July 2022. This launch focusses on the receipts from the sale of native authority properties and the way they’re spent on the availability of recent social housing. For extra info, please see the technical notes.
1. Headline figures
2,006,690 social housing dwellings have been offered via Proper to Purchase schemes from April 1980 to March 2022. This consists of Statutory Proper to Purchase, Voluntary Proper to Purchase and Preserved Proper to Purchase
91% of all recorded social housing gross sales from April 1980 to March 2022 have been via Proper to Purchase schemes
In 2021-22 there have been:
14,006 gross sales of social housing have been made in 2021-22 via the Proper to Purchase schemes, a rise of 52% in comparison with 2020-21, although a lower of 8% in comparison with 2019-20.
1,397 gross sales of social housing via the Proper to Purchase scheme, a rise of 80% in comparison with 2020-21, and a rise of 24% in comparison with 2020-21
2. Proper to Purchase gross sales
In 2021-22, there have been 14,006 gross sales of social housing via the Proper to Purchase scheme [footnote 1], together with Preserved Proper to Purchase and Voluntary Proper to Purchase [footnote 2], a rise of 52% in comparison with 2020-21, though it is a lower of 8% in comparison with 2019-20.
Of the 14,006 Proper to Purchase gross sales in 2021-22, 10,974 have been native authority owned and three,032 have been owned by non-public registered suppliers ( PRPs ). Of these owned by PRPs , 3,008 have been offered via Preserved Proper to Purchase and 24 have been offered via Voluntary Proper to Purchase [footnote 2].
Following a drop in Proper to Purchase gross sales in 2020-21, native authority Proper to Purchase gross sales have recovered to 2019-20 ranges. Although PRP Proper to Purchase gross sales in 2021-22 have been 30% greater than in 2020-21, they’re nonetheless solely 65% of the whole PRP Proper to Purchase gross sales in 2019-20.
Because the introduction of Proper to Purchase in 1980-81, there have been 2,006,690 gross sales of social housing to tenants via all of the Proper to Purchase schemes [footnote 3]. Preserved Proper to Purchase was launched in 1989, although knowledge on the variety of gross sales is just accessible from 1997. The overwhelming majority, 94%, of all Proper to Purchase gross sales have been to native authority tenants. Nevertheless, since 2010-11, 26% of all Proper to Purchase gross sales have been to tenants of PRP owned social housing.
Determine 2.1 Gross sales to tenants via the Proper to Purchase Schemes, England; by supplier, proportion of gross sales 1996-97 to 2021-22
On the peak of Proper to Purchase gross sales, in 1982-83, 167,123 dwellings have been offered via the scheme, representing 3% of social housing inventory at 31 December 1981. There have been numerous smaller peaks and troughs since then, reflecting numerous adjustments in coverage referring to Proper to Purchase. In 1986, the foundations modified to permit for greater reductions to tenants of flats and the minimal time period for tenants to buy their property was diminished from 5 years to 2 years. This led to a second peak in gross sales between 1988-89 and 1989-90 the place over 130,000 dwellings (over 2.8% of inventory) have been offered annually.
Determine 2.2 Gross sales to tenants via Proper to Purchase schemes per 1,000 inventory, by supplier 1980-81 to 2021-22
A: Begin of Proper to Purchase Scheme, B: reductions elevated for studios, C: reductions and eligibility diminished, D: reductions elevated (reinvigoration)
In 1999, the utmost low cost was diminished from £50,000 to a regionalized most, starting from £22,000 within the North East to £38,000 in London. This alteration was adopted by an announcement that Proper to Purchase was as a consequence of be diminished which led to a pointy uptake from 1998 to 2004. Complete Proper to Purchase gross sales in 2003-04 have been 84,102, the best since 1989-90. In 2003, the foundations have been modified which elevated the minimal tenancy to five years to qualify for Proper to Purchase and decreased the reductions. This alteration, together with the worldwide monetary disaster, meant that between 2003-04 and 2009-10, annual gross sales via Proper to Purchase dropped from 84,102 to three,144, a 96% discount.
In April 2012, the federal government modified the utmost money low cost accessible for Proper to Purchase gross sales to a brand new greater degree of £75,000 throughout England. In March 2013, in recognition of the rising property costs in London, the federal government additional elevated the utmost low cost accessible for tenants dwelling in London boroughs to £100,000. In July 2014, the federal government modified the utmost money low cost accessible for the Proper to Purchase to ensure that it to extend yearly in step with the Client Worth Index (CPI) fee of inflation. The low cost was £84,600 in England and £112,800 in London in 2021-22. This reinvigoration, together with the introduction of the Voluntary Proper to Purchase, elevated gross sales via Proper to Purchase to 18,100 in 2016-17; greater than a five-fold improve in comparison with 2010-11, however nonetheless a 78% lower in comparison with 2003-04.
Since 2016-17, annual gross sales of social housing via the Proper to Purchase schemes have been step by step declining, from 18,100 in 2016-17 to fifteen,257 in 2019-20. There was a sharperdecline in 2020-21 which can be, partly, as a result of restrictions launched in response to the COVID-19 pandemic.
The vast majority of Proper to Purchase gross sales have been native authority owned dwellings. Gross sales of native authority properties via Proper to Purchase in 2021-22 elevated by 59% in comparison with 2020-21, reaching a worth barely above that in 2019-20. Gross sales of PRP -owned inventory via Voluntary Proper to Purchase and Preserved Proper to Purchase elevated by 30% in the identical time interval, although nonetheless remained decrease than the gross sales in 2019-20. Whereas Preserved Proper to Purchase gross sales elevated from 2,187 to three,008 from 2020-21 to 2021-22 (improve of 38%), Voluntary Proper to Purchase gross sales decreased from 138 to 24 (lower of 83%).
Determine 2.3 Gross sales to tenants via Proper to Purchase schemes per 1,000 inventory, by supplier 2003-04 to 2020-22
C: reductions and eligibility diminished, D: reductions elevated (reinvigoration)
3. Proper to Purchase gross sales by area
Preserved Proper to Purchase and Voluntary Proper to Purchase knowledge are usually not accessible by area. The info collected by the RSH data the whole variety of gross sales to tenants by native authority. As Preserved and Voluntary Proper to Purchase comprised over 76% of complete gross sales to tenants of PRP owned properties from 2012-13 to 2021-22, using the time period ‘Proper to Purchase’ on this part in reference to PRP gross sales will use values for all gross sales to sitting tenants.
The determine beneath reveals the whole variety of Proper to Purchase gross sales to sitting tenants by area between 1980 and 2022. As could be seen, in the course of the first 4 years of the Proper to Purchase scheme, essentially the most gross sales have been seen within the North West and West Midlands. When the scheme was modified to extend the reductions for flat gross sales, the variety of gross sales in London and the South East elevated essentially the most, reaching the next peak in gross sales than when the scheme first started. Till 2020-11 all Proper to Purchase gross sales recorded by area are solely native authority gross sales; from 2011-12 onwards PRP gross sales are additionally included within the complete.
Since reinvigoration in 2012, gross sales to sitting tenants elevated in all areas of England, however the largest improve was seen in London.
Determine 2.4 Gross sales to sitting tenants via Proper to Purchase schemes, by English Area 1980-81 to 2021-22
In 2021-22 the share of inventory (each native authority and personal register supplier) offered to sitting tenants via Proper to Purchase schemes was related throughout all areas, starting from 0.19% within the South East, to 0.60% in Yorkshire and the Humber.
Determine 2.5 Gross sales to sitting tenants via Proper to Purchase schemes, share of complete inventory, by English Area 2009-10 to 2021-22
3.1 Gross sales to sitting tenants by area and supplier
Between 1986 and 2015 there have been a number of giant scale quantity transfers ( LSVTs ) [footnote 4] of native authority inventory to personal registered suppliers. LSVTs have been extra prevalent in sure areas of the nation, notably within the North West the place 85% of inventory was owned by PRPs by 2015.
Due to the regional distribution of LSVTs , within the 6 years to 2021-22, 75% of Proper to Purchase gross sales within the North West have been PRP inventory, whereas in Yorkshire and the Humber, the place there have been fewer LSVTs , the Proper to Purchase gross sales have been predominantly (80%) native authority owned inventory.
Determine 2.6 Gross sales to sitting tenants via Proper to Purchase schemes, by English Area and Supplier 2011-12 to 2021-22
4. Proper to Purchase reductions
Monetary knowledge on Proper to Purchase reductions is accessible again to 1998-99 for native authorities and personal registered suppliers. Between 1998-99 and 2011-12, the typical low cost diminished from 50% for each native authorities and PRPs to 27% and 32% respectively. Following the reinvigoration of the Proper to Purchase scheme, which additionally impacted Preserved Proper to Purchase, the typical low cost elevated to 45% and 50% in 2012-13 for native authorities and PRPs respectively. Between 2012-13 and 2021-22 the share low cost has remained broadly constant and is now 41% for native authorities and 53% for PRPs .
Regardless of the share low cost for PRP gross sales remaining greater than reductions for native authority gross sales, the worth of the low cost for native authority properties are much like these for PRP properties. That is due partly to the truth that most native authority Proper to Purchase gross sales are on properties within the South East and London, the place property values are greater. In 2021-22, the typical property worth offered via Proper to Purchase was £164,490 for native authorities and £135,530 for PRPs .
In 2021-22, there was a rise within the common property worth offered via Proper to Purchase for native authorities, reflecting the broader housing market, which in flip led to the next common low cost. For PRPs , the typical market worth of Proper to Purchase dwellings offered in 2021-22 was related (lower of 0.3%) to that in 2020-21. As well as, in comparison with 2020-21, reductions in 2021-22 have been up by 1.3% for LAs and down 0.4% for PRPs .
5. Proper to Purchase purposes
Information on purposes by tenants to buy their social housing via the Rightto Purchase scheme is just collected by native authorities and at present is just accessible by native authority since 2011-12. Information on Proper to Purchase purposes shouldn’t be accessible for personal registered suppliers.
In 2021-22 there have been 27,459 purposes by native authority tenants to buy their social housing property via Proper to Purchase, a rise of 13% in comparison with 2020-21. The variety of gross sales annually is often round 40-50% of the variety of purposes.
Determine 2.7 Native authority Proper to Purchase purposes and gross sales, England 1998-99 to 2021-22
6. Variety of bedrooms in Proper to Purchase properties
Since knowledge on bed room numbers of native authority Proper to Purchase gross sales have been first collected in 2012-13, 12% of gross sales have been 1 bed room, 33% have been 2 bed room and 53% have been 3 bed room or extra. On this similar time interval, 5% of PRP gross sales via Proper to Purchase have been 1 bed room, 27% have been 2 bed room and 68% have been 3 or extra bedrooms. These proportions have remained broadly related throughout the ten years.
For PRPs , which make up 26% of all Proper to Purchase gross sales since 2012-13, 5% of gross sales have been 1 bed room, 27% have been 2 bed room and 68% have been 3 or extra bedrooms.
The chart beneath reveals the breakdown of Proper to Purchase gross sales by the variety of bedrooms by area for PRP and native authority gross sales [footnote 5]. The graph beneath reveals that for all areas of England, PRPs proportionally promote fewer 1 mattress properties and extra 3 or extra mattress properties than native authorities.
The chart additionally reveals that for each native authorities and personal registered suppliers, the proportion of three or extra bedrooms properties offered in London is significantly smaller than for all different areas.
Determine 2.8 Variety of bedrooms in properties offered via Proper to Purchase schemes, by supplier and English Area 2012-13 to 2021-22
7. Proper to Purchase
Tenants of social housing owned by PRPs who would not have the Preserved Proper to Purchase might be able to buy their property via the Proper to Purchase. Proper to Purchase gives a reduction between £9,000 and £16,000 to tenants relying on the placement of the property. Since its introduction in 1998, there have been 11,068 gross sales of social housing via the Proper to Purchase recorded by Houses England. [footnote 6]
In 2021-22, there have been 1,397 gross sales of social housing via Proper to Purchase, a rise of 78% in comparison with 2020-21, and a rise of 24% from 2019-20.
There was a pointy improve within the variety of Proper to Purchase gross sales in 2018-19, when 2,080 gross sales have been recorded, earlier than lowering to 777 in 2020-21. This worth elevated by 80% into 2021-22.
Determine 2.9 Proper to Purchase Gross sales in England, 1998-99 to 2021-22
