Member

Clause 7 also introduces three new exceptions. First, it exempts newly built social homes from the scheme for 35 years, giving councils the confidence to invest in new supply. At present, councils are disincentivised from building because homes can be sold before costs are recovered through rent. This is a significant supply side reform. From my own experience, I know that the frustration of seeing newly built homes sold off immediately, before they can meet local need, is extensive, so this is the right step to take. The Government’s manifesto committed to better protecting newly built social housing from the right to buy, and introducing an exemption was supported by 78%—the vast majority—of respondents to our consultation.