§ Chris GraylingTo ask the Deputy Prime Minister whether housing associations retain funds raised as a result of the exercising of the right to buy. [65672]
563W
§ Mr. McNultyThe right to buy can be exercised only by those few housing association tenants who are secure tenants of non-charitable housing associations. Any sale proceeds that remain after the deduction of expenses, outstanding loan debt and the recovery of any grant for the original provision of the property, may be retained and spent on purposes permitted by legislation for an association registered with the Housing Corporation.
Former local authority tenants of housing stock that has been transferred to registered social landlords retain a Preserved Right to Buy. The transfer arrangements will normally contain a sharing agreement aimed at giving the local authority a share of sales receipts.
Tenants of registered social landlord properties built or acquired with public funds since 1 April 1997 have a right to acquire their rented home under the Housing Act 1996. The Housing Corporation provides the registered social landlord with a grant to cover the discount offered to the tenant for right to acquire sales and the landlord retains all proceeds of such disposals. The legislation requires the proceeds to be placed in a separate fund—the Disposal Proceeds Fund—and the Housing Corporation directs the registered social landlord to use the proceeds to provide replacement housing for rent.