Retaining Right to Buy receipts could give London boroughs nearly £470m a year to spend on building homes.
Responding to a Government consultation on capital finances regulations for local government, London Councils, which represents all 32 boroughs and the City of London, said allowing councils to keep 100% of their Right To Buy receipts would give councils about £470m per year to spend on replacement homes, based on data from 2014/15.
It also called for red tape surrounding Right to Buy receipts to be cut, including restrictions which prevent local authorities from match funding receipts with affordable housing funding.
Sir Steve Bullock, London Councils’ executive member for housing, said:
“Cutting restrictions around Right To Buy receipts would make a huge difference in helping councils replace those homes that are sold off, even if the level of funding they are allowed to retain is not increased.
“We know thousands more homes must be built in London every year to allow us to even begin to tackle a growing crisis. Boroughs have long been pulling their weight and doing their bit by granting planning permission and ensuring house-building is progressing, but they must be given more support.”