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The Right To Buy In Scotland - Pulling Together The Evidence

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Footnotes

1 'Relets' are properties being let to new tenants or to existing tenants wishing to transfer to alternative social housing (known as 'transfer applicants').

2 453,837 local authority properties were sold under the Right to Buy between October 1980 and December 2005. 15,232 housing association properties had been sold under the Right to Buy up to March 2005.

3 Research for the Council of Mortgage Lenders (2004) found that 70% of households in Scotland aspired to be owner-occupiers within two years.

4 The conditions whereby a tenancy is retained on 'preserved' Right to Buy terms when a landlord seeks to terminate the tenancy are set out in part 4 of the Scottish Statutory Instrument 2002 No. 318 The Housing (Scotland) Act 2001 (Scottish Secure Tenancy etc.) Order 2002, and refer to section 16 and schedule 2 of the Housing (Scotland) Act 2001.

5 The 2001 Act allowed for housing associations to 'opt in' to the Right to Buy, but only one - Ayrshire North Housing Association Ltd - has chosen to do so to date.

6 The clawback period is the period of time over which some of the discount would be repaid if the property was sold within that period.

7 Research was commissioned by the Scottish Executive from Holt Brook et al. (2006).

8 Right to Buy sales began in October 1980, but councils had been making discretionary sales before that date for many years. General consents to sell had existed - in various forms - since 1952. During the 18 months prior to the introduction of the Right to Buy, 5,543 discretionary sales took place in Scotland (April 1979 to October 1980).

9 Based on sales of local authority, New Towns and Scottish Homes stock.

10 Including sales of properties in Glasgow, Dumfries & Galloway and Scottish Borders transferred under the Community Ownership Programme.

11 The apartment sizes of 2% of sales in 1980 and 3% of sales in 1981 are unknown.

12 Sales to sitting tenants who retained the Right to Buy following the stock transfer to housing associations in Glasgow, the Borders and Dumfries & Galloway are included in the data for Figures 2.8, 2.9, 2.10 and 2.11.

13 Local authority houses transferred to housing associations under community ownership in Dumfries & Galloway, Glasgow and Scottish Borders are included in this analysis, as transferring tenants retain their existing rights under Right to Buy.

14 Including estimates for 2005 for the three councils whose stock was transferred under community ownership.

15 The median price is the middle price across the whole range of sales prices.

16 It can be argued that the Right to Buy, in itself, may impact on buyers' propensity to move. For example, in the absence of the Right to Buy, a tenant might have moved out earlier to become an owner-occupier in the private housing market, or alternatively a tenant might have stayed in a property longer as a tenant, but has moved earlier because of the options that owner-occupation has made available.

17 Unless stated otherwise, references to 'new tenants' refer to all new tenants, and include new tenants who had been homeless prior to taking up tenancies.

18 Figure 4.1 shows data for local authorities only. Also, Figure 4.1 does not include lets in 1999 or 2000 as data was not collected in those years.

19 2004/05 figures include estimates for the proportion of new lets in the three whole stock transfer authorities.

20 2004/05 figures include estimates for the proportion of new lets in the three whole stock transfer authorities.

21 The SHCS asks respondents in which year they bought their home under the Right to Buy. By using Right to Buy sales data to identify the number of properties sold each year, and the data from the SHCS about which year respondents bought their home, it is possible to broadly estimate the proportion of buyers who bought in each year and remain in their home.

22 Argyll & Bute, Dumfries & Galloway, East Dunbartonshire, East Lothian, East Renfrewshire, City of Edinburgh, Highland, Midlothian, Moray, Perth & Kinross, South Ayrshire, Stirling and Western Isles.

23 Aberdeen City, Aberdeenshire, Angus, Clackmannanshire, Falkirk, Fife, North Ayrshire, North Lanarkshire, Orkney Islands, Renfrewshire, South Lanarkshire and West Lothian.

24 Dundee City, East Ayrshire, Glasgow City, Inverclyde, Scottish Borders, Shetland Islands and West Dunbartonshire.

25 Median valuation of Right to Buy sales has been estimated due to incomplete data.

26 Relet rates are for local authority or large scale voluntary transfer stock only and do not take account of other lets by RSLs.

27 The SNS system provides a range of data for each of 6,505 data zones in Scotland which contain on average 750 people. Data zones have been ranked on the basis of the Scottish Index of Multiple Deprivation ( SIMD) which was derived from analysis of a range of indicators for each data zone. A full description of data zones, and derivation and interpretation of the SIMD is given on the SNS website at www.sns.gov.uk .

28 These tenants may not necessarily have been new tenants. They may have been existing tenants who had transferred properties within the previous two years.

29 This includes former Scottish Homes and New Town properties as well as local authority properties.

30 By 1995 Pawson et al. estimated that approximately 25,000 homes had been sold for a second time and just under 7,500 had been sold three or four times.

31 In East Lothian there was however significant demand from Edinburgh-based buyers.

32 Affordability was defined as a price not exceeding three times the annual earnings of people working in Glasgow, as shown by the New Earnings Survey.

33 SCORE is the Scottish Continuous Recording system, which collects information from housing associations and co-operatives about new lettings.

34 'Non-Right to Buy' in this context are those owner-occupiers in either ex-Right to Buy or private built property.

35 To meet the Scottish Housing Quality Standard a home must be compliant with the Tolerable Standard, free from serious disrepair, energy efficient, provided with modern facilities and services and healthy, safe and secure.

36 The factoring services provided include common repairs.

37 The remaining properties are buildings which share common parts but which have become wholly owned; whilst GHA(m) continues to factor the properties, there is no longer any relationship with GHA.

38 Tenants of non-charitable RSLs are entitled to the Right to Buy, as are tenants of charitable RSLs where the RSLs registered as a charity after 18 July 2001.

39 RSLs can apply to the Scottish Ministers for an extension to the 2012 exemption from the Right to Buy for a further period of up to ten years.

40 Where the public subsidy for a building project was agreed before 30 September 2002, the properties in question would be exempt from Right to Buy until 2012.

41 The cost floor rules help protect a landlord's investment in rented housing. They set out the method of calculating the price at which a house will be sold under the Right to Buy by taking into account construction or major improvement works.

42 Includes Scottish Homes/New Towns tenancies. The estimate of 347,000 local authority tenancies is based on there being 353,000 dwellings used as normal letting stock in March 2006, and 7,000 of those being vacant.

43 Includes 6,687 tenancies managed by 19 housing co-operatives.

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Page updated: Tuesday, September 26, 2006