Exploitation of the Right to Buy Scheme by Companies

The 'Right to Buy' (RTB) scheme has generated 1.5 million sales since its creation in 1980 and has been very successful in achieving its goal of increasing owner occupation levels. Commissioned by the ODPM in response to concerns raised by local authorities and MPs about abuses of the RTB, this report examines the scale, extent and nature of potential exploitation by companies of the scheme's rules, both at national and local level. Although not an illegal activity, these practices are either contrary to the spirit of the RTB or potentially exploit tenants by charging them high fees to help them buy their home. A number of conclusions are drawn regarding the characteristics of RTB purchasers, RTB in regeneration areas, RTB service companies, RTB incentives companies and private landlordism, and exploitation by relatives. This publication will be of interest to all housing authorities that operate this scheme.