Conservative Run Council to Reinvest House Sales Money into New Affordable Homes

Conservative controlled Tamworth Borough Council is to keep some of the additional money raised from the sale of council homes to tenants in Tamworth to fund the building of new affordable homes to rent, following the Government’s reform of the Right To Buy scheme.

Under a new agreement with the government, which was approved by Tamworth Borough Council’s Cabinet last week, a proportion of any additional capital receipts from the sale of council homes to tenants under Right to Buy legislation will now remain in Tamworth, rather than being allocated to the national affordable housing programme by central government.

This means that Tamworth Borough Council will be able to invest available funds in new affordable housing in the borough.

Cllr Michael Greatorex, Cabinet member for Housing, said, “The changes in the rules allow us to use keep a greater proportion of the money raised by the sale of council homes here in Tamworth than would otherwise have been the case.  In turn, this could allow us to build more affordable housing for the people who really need it.”

This change follows the introduction to new rules regarding Right To Buy by central government, including increases in the level of discount available to tenants who buy their council homes.

The government has pledged to replace each extra home sold under Right To Buy with a new affordable home.

Housing need in Tamworth remains high, with more than 2,000 households on the Housing Register and an increasing number threatened with homelessness.

Tamworth Borough Council, working with its partners, is seeking to increase the supply of affordable housing by building new homes, bringing empty homes back into use and encouraging private renting to meet the need.