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Lucy Bradbury
Susie Rogers
The pressure on local authorities to provide more affordable housing has never been greater. Rising demand, increasing homelessness pressures and the continued reliance on temporary accommodation mean councils are under constant pressure to find new ways to increase housing supply.
When councils talk about increasing housing supply, the conversation almost always starts with new development and for good reason. Building new homes remains essential if the housing crisis is to be addressed in the long term. However, focusing solely on development risks overlooking other valuable delivery tools, including buying back units previously sold (including under the right to buy) and which are often located in existing estates.
There is also a middle ground between new development and traditional buybacks: strategic acquisition programmes. These involve acquiring established homes on the open market, either individually or as part of a portfolio. Although local authorities may not have the same historic knowledge of these properties as they would with buybacks, strategic acquisitions can still provide an effective way to increase affordable housing supply, particularly where suitable portfolios become available from registered providers.
New housing developments take time. Planning, procurement, funding arrangements and construction can mean years pass before new homes become available for occupation - however, the need for housing is immediate.
Buybacks and strategic acquisitions can offer a much quicker route to increasing housing stock. By acquiring existing homes, councils can often bring properties back into use in a matter of weeks rather than years. In most cases, homes can be occupied shortly after acquisition, helping local authorities respond more quickly to housing pressures and reducing dependence on costly temporary accommodation.
Former council homes sold under Right to Buy, along with carefully targeted market acquisitions, can provide opportunities to increase the availability of affordable housing. These properties are often located within established communities where infrastructure, transport links and local services are already in place.
Buybacks can also help retain affordable housing within an area and support the creation of balanced, sustainable communities. Rather than allowing suitable homes to remain permanently outside the affordable housing sector, councils can bring them back into public ownership and use.
Development remains critical to meeting future housing need and increasing overall supply. However, long-term development programmes and short-term acquisition strategies can work hand in hand.
Buybacks provide councils with an opportunity to deliver homes whilst larger regeneration schemes and development projects move through their various stages. They can help bridge the gap between immediate need and future delivery, providing additional flexibility within a wider housing strategy.
In the face of growing housing pressures, local authorities need to make full use of every tool available to them. Development will remain central to increasing supply, but strategic acquisition programmes, including buybacks, can provide an additional and often faster route to delivering affordable homes where they are needed the most.
Buybacks may be an overlooked tool, but they are one that local authorities can no longer afford to ignore. Alongside development and wider strategic acquisition programmes, they can help councils respond to immediate housing pressures and make better use of existing housing stock.
If your authority is considering a strategic acquisition and/or buyback programme, or looking to expand an existing one, the Capsticks housing team can help you navigate the legal and practical considerations involved and support the successful delivery of your objectives.
Susie Rogers Susie Rogers | Capsticks Head of Housing, Capsticks
Lucy Bradbury Lucy Bradbury | Capsticks Senior Associate, Capsticks
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