When a home is sold through right to buy, Councils will now have more options on how to spend that money to help them build new homes that are better suited to the needs of their community.
The changes announced today will give Councils more flexibility to put money aside and develop ambitious projects in the future. This combined with the abolition of the borrowing cap should help Councils rapidly build homes over the next few years.
Housing Secretary Rt Hon Robert Jenrick MP said:
Councils have a crucial role to play in increasing housing supply, including building more affordable and social housing.
I have listened to local authorities who responded to our consultation on the use of Right to Buy receipts and I am delighted to announce a package of reforms providing authorities with the flexibilities they need to develop ambitious build programmes and help get people on the housing ladder.
This in turn should help bring down those hefty waiting lists for homes and help more people get settled in the area of their choice.