Fewer council homes in Barnet were replaced than sold through the government’s Right to Buy scheme last year, figures show. Housing charity Shelter said the programme has “torn a hole” in the national social housing supply and warned that recent policy changes are a step in the wrong direction.

Data from the Ministry of Housing, Communities and Local Government reveals that 23 council homes were privatised through Right to Buy by Barnet Council last year – down from 41 in 2019. Councils are expected to replace these homes on a one-for-one basis, but Barnet Council acquired or began construction on 18 replacements in 2020.

Right to Buy was introduced in 1980 to help council and housing association tenants buy their home at a discount. The maximum level of the discount was raised in 2012 and now stands at £112,800 in London.

A Barnet Council spokesperson said: “Provision of new affordable homes in Barnet has exceeded the sale of them through the Right to Buy scheme by a huge margin.

“In 2020/21 The Barnet Group – which is owned by Barnet Council – finished building 145 new homes through its registered provider of social housing, Opendoor Homes. 

“Construction work also began at Cheshir House in Hendon, which will provide 75 council homes in an extra care scheme. A further 18 Opendoor homes are being built in Burnt Oak Broadway. In 2020/21, Opendoor Homes acquired 48 homes, and the Housing Revenue Account acquired 43.

“In addition to this, we are currently on-site building 467 new homes. This is a mixture of housing through Opendoor Homes, Barnet Council and SAGE funded affordable housing. All bar 32 of these homes will be for affordable rent.”

Across England, 94,000 homes have been sold through Right to Buy since then, with just 31,000 (33%) replacement houses acquired or started. As of 1st April, councils can use 40% of the receipts from properties sold to cover the cost of replacements. However, they can now instead use the cash to fund schemes to help people buy houses – either through shared ownership or the discounted First Homes scheme for first-time buyers.

The Joseph Rowntree Foundation said the changes are “piecemeal” given the scale of the national housing crisis and further reforms are needed if councils are to replace homes sold through Right to Buy.

Rachelle Earwaker, an economist at the charity, said:

“The latest data seems to indicate that the uneven impact of the pandemic is likely driving down the demand for purchasing Right to Buy homes. However, the fact that we are not replacing the homes that are being sold was an issue prior to the pandemic and will persist long after it unless we act urgently.”

The government also extended the time councils have to spend Right to Buy receipts from three to five years – which the JRF said was a positive move. Barnet Council collected £4.8 million through the scheme last year, contributing to £85.4 million raised since 2012.

Shelter said the pandemic has exacerbated the housing crisis, and there could not be a worse time to endanger the supply of affordable social homes. Chief executive Polly Neate added:

“Right to Buy has torn a hole into our social housing supply that has not been plugged. The government has failed to replace the homes sold through Right to Buy with new social housing. As we look towards our post-pandemic recovery, the government must build the new generation of social homes that people and families desperately need.”

An MHCLG spokeswoman said Right to Buy has helped nearly 2 million council tenants become homeowners, and the government is investing over £12 billion in affordable housing over five years.

She added: “We’ve made it easier for councils to fund new homes to replace the ones they’ve sold as well as giving them greater flexibility over the types of homes they provide to reflect the needs of their communities.”