Local Authorities reported 7,494 eligible sales in 2024-25, up 7% from 2023-24. However, sales were down 32% from 2022-23, according to the latest Right to Buy sales and replacements 2024 to 2025 data from the Ministry of Housing, Communities & Local Government,
For the same period, 3,593 replacements were funded through receipts from eligible sales, an increase of 4% compared with 2023-24. Local Authorities started or acquired 3,548 properties and Homes England or the Greater London Authority started or acquired 45 properties.
Kelly Boorman, National Head of Construction at RSM UK, comments: “While it is positive to see an annual uplift in the number of Right to Buy sales, there has been a sharp decline (32%) in the number of sales since 2022-2023. This highlights the need for government to reform legislation to make home ownership more accessible.
“The spike in 2022-2023 was driven by a temporary surge in buyer confidence, fuelled by lower interest rates and more affordable mortgage products. However, this was followed by a sharp rise in mortgage rates in 2023, which led to a collapse in buyer confidence and a knock-on impact on sales volumes in 2023-24.
“The uptick in 2025 sales indicates that confidence is returning to the market as buyers consider their mortgage options, boosted by the Bank of England cutting interest rates to 4% in August, the lowest level in more than two years.
“But, there are still challenges for individuals looking to get on the ladder, with many trapped by surging rental costs. As the government continues to drive affordable home ownership and reaching its 1.5m new homes target, we expect to see a stabilisation of rental costs.
“The recent introduction of high loan-to-value mortgages, more affordable mortgage products and government-backed schemes which offer guarantees to lenders will support this ambition and encourage the shift from renting to ownership.”
She added: “The 4% uplift in Right to Buy replacements is another step in the right direction. However when looking at the replacement figures for Homes England (45), they are significantly down on 2015 levels (1,042), denoting there is a lot of work to do to stimulate home ownership. Greater London Authority replacement levels (3,548) were consistent with the last three years, highlighting the London market has been static during this time, mainly due to affordability barriers and surging rental costs.
“In contrast, regions such as the North East and Yorkshire and the Humber have seen strong growth in replacement volumes, aligning with RSM’s latest UK housing tracker, which shows that the North is outpacing the South. Homes England faces a significant challenge in scaling up the delivery of affordable homes to meet national targets, but the government’s pledge of £10bn in financial investment will provide a welcome boost by accelerating the pace of newbuilds and unlock stalled developments.”
Read the orginal article: https://propertyindustryeye.com/right-to-buy-sales-rebound/
