The Right to Buy (RTB) should be scrapped for all new tenancies, according to housing charity, Shelter Scotland.

The charity is calling on the Scottish Government to be bolder in its reform of RTB by ending the policy for all new tenancies [1] and that those currently with the RTB should move onto the ‘modernised’ RTB with its more restricted terms and conditions. [2]

The policy, which allows social tenants to buy their rented home, often with substantial discounts, was introduced over 25 years ago under Mrs Thatcher’s government. It has meant the sale of nearly half a million public sector homes since then.

The Scottish Government has proposed ending the RTB for newly built social housing and for tenants getting a rented social home for the first time, or returning after a tenancy break. However, tenants with a current RTB would keep that right.

The charity argues that its proposals – contained in its submission to the current consultation on the upcoming Housing Bill [3] – are much simpler and will make a bigger impact at a time when the need for affordable rented homes is so acute.

In addition, Shelter Scotland argues that decisions over ‘pressured area status’ should be devolved to local authorities and that the RTB should be suspended for all tenants in an area covered by this designation.

A recently released Shelter Scotland report on the housing crisis, Building pressure, showed that social rented housing is at a 50-year low [3].

Graeme Brown, Director of Shelter Scotland, housing and homelessness charity, said: 'Much of this decline can be attributed to the Right to Buy policy which has robbed communities of social housing that has often then been sold on the open market for ridiculous prices, particularly at the height of the housing market boom, instead of being re-let to those in housing need.

'But Right to Buy is not the only reason for a decline in housing. A failure to invest in housing by successive governments to help rebuild stock sold under Right to Buy has been a key factor in the lack of homes in the 21st century. Governments must recognise that investment in housing is a must and reaps rewards, not just in housing people, but also to the wider economy, particularly during this economic downturn.'

He added: 'Right to Buy and building more homes is like pouring the bath water out at the same time as running the taps. When Scotland needs more social housing that just makes no sense whatsoever.'

The charity’s response to the Scottish Government’s new housing bill consultation also:

• argues that the Scottish Housing Regulator must continue to oversee local authority homelessness services.
• strongly advises that homelessness must be given a high priority in the proposed new regulation system.
• argues that the Scottish Government has not set out the case for profit-distributing bodies to become registered social landlords (RSLs)

It also proposes some additional topics that should be contained in the upcoming bill. These are:

• Homeless people should have a right to support to accompany a right to a home.
• There should be reforms of housing allocations to strengthen the role that RSLs play in housing homeless people.
• Consideration should be given to whether there should be changes to tenancy law to make evictions from social tenancies a last resort.
• Minor reforms to the tenancy regime on rent payments, succession, and joint tenancies.

Notes to editors

1. This includes tenancies resulting from transfers and successions.
2. The modernised RTB applies to tenancies which started on or after 30th September 2002 or tenants who had not already qualified for the RTB by this date.  Under the modernised terms the qualifying period for tenants is 5 years and the maximum discount is 35 per cent of market value or £15,000, whichever is the lower. The preserved RTB (pre-30th September 2002 tenancies) has a qualifying period of 2 years and entitles tenants to a maximum discount of 60 per cent of market value for houses and 70 per cent for flats.
3. Draft Housing (Scotland) Bill: a consultation
   
4. Countdown to 2012
   
5. Shelter believes everyone should have a home and helps 170,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Britain's housing crisis by campaigning for new laws, policies and solutions.
6. Spokespeople are available for interview, telephone the media office on 0844 515 2442. An ISDN line number is available for broadcast interviews.