This item was published during the term of a previous administration that ended in April 2007
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Moray suspends right to buy for some tenants
07/03/2006
Ministers have accepted the case put by Moray Council for part of its local authority area to be designated as 'pressured' for the purposes of the Right to Buy.
This means that some tenants within the designated areas will have the Right to Buy their rented council or housing association house suspended for five years. The Pressured Area option was introduced in 2001, to assist councils facing particular local pressures. It helps councils to continue to offer homes for affordable rent to people on low incomes in areas where the Right to Buy could otherwise lead to serious shortages.
The suspension of Right to Buy only applies to tenancies which commenced either on or after 30 September 2002. Speaking at the Chartered Institute of Housing conference in Aberdeen, Communities Minister Malcolm Chisholm said:
"Housing pressures vary across Scotland, and it is up to individual councils to consider whether it is appropriate to apply.
"Moray Council presented a convincing case in support of its application, with compelling evidence of substantial pressures on affordable housing in the designated areas.
"The Executive recognises that affordable housing is a key factor in sustaining communities, and that is why we have provided record funding of nearly pound97 million this past year to fund new affordable homes across rural Scotland. "This designation does not signal any change in our Right to Buy policy. The pressured area option has been available to local authorities for five years.
"Moray is the fourth council to have successfully applied, and a fifth application, from Fife Council, is currently being considered. "This shows that local authorities are looking carefully at affordable housing in their own areas and deciding that the pressured area option can help them.
"The Executive recognises that there are strong views about Right to Buy, but we will consider whether there is a case for further changes only when we have seen the evidence that will be collected on the effect of the policy and reported to Parliament this autumn." The pressured area designation applies to the towns of Elgin and Lossiemouth. The designation also covers a large, rural area surrounding Forres, although Forres Town itself was not part of the application. It is estimated that a total of 472 tenancies will be affected.
The pressured area designation granted to Moray Council lasts for five years.
456 Moray Council tenancies are affected immediately, as well as 16 housing association tenancies.
The designation will affect three letting areas in Moray:
- Elgin;
- Lossiemouth; and
- The Forres Rural housing management area, which covers a large rural area around Forres but does not include Forres town itself.
The first pressured area designation was granted in October 2005 to East Renfrewshire Council for the 'Eastwood' part of its area. The following month, the second was granted to Highland Council for a large part of the Highlands. The third and most recent designation was granted in February 2006 to South Ayrshire Council, covering 29 letting areas.
Right to Buy changed significantly when the Housing (Scotland) Act 2001 reduced and capped discount levels, extended the qualifying period to five years and introduced the pressured area mechanism. The legislation also requires Scottish Ministers to report to Parliament by 30 September 2006 on the effect of the Right to Buy. The preparatory work for that evidence-based report is underway. Ministers have made clear that they will not consider the case for any further adjustments to the Right to Buy in advance of the report.