Right to Buy vote undoubtedly a landmark but now is time for the how, says KPMG

Right to Buy vote undoubtedly a landmark

Commenting on the decision by the majority of housing associations to vote in favour of the National Housing Federation and Government’s proposals on Right to Buy.


Also on KPMG.com

Jan Crosby, Head of Housing at KPMG, said:

“This vote will undoubtedly be seen as a landmark in the housing association sector’s history. By achieving voluntary agreement, the NHF and Government have enabled the initial decision to be made quickly without regulatory red tape, but the ‘how’ is understandably unclear and could take some time. The biggest issue is likely to be the timing gap in funding between the 70 per cent reimbursed by government when a property is sold and the remaining balance received when a new home starts on site, which it can be hoped will be proactively bridged by Government. Another hurdle is the fact that as it stands, replacement build costs are likely to be higher than sale receipts in some areas, due to the level of Right to Buy discount. These and other details need to be worked through.

“For housing associations, it will be vital to review their financial plans with some urgency, specifically looking at funding, corporation tax and VAT implications, so that they can enter this brave new world with the insight and planning they need. With the target for replacing a home two years after a sale, time is of the essence.”


For media enquiries please contact:

Frances Shennan, Corporate Communications, KPMG

T: +44 (0)121 335 2575

E: frances.shennan@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Connect with us


Request for proposal



KPMG’s new-look website

KPMG has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.