In October 2015, the Government announced the voluntary agreement with housing associations and the National Housing Federation that will extend right to buy discounts to 1.3 million more families across the country.
At autumn statement 2015, the Chancellor announced that, ahead of full implementation, there would be a pilot with five housing associations, which would inform the design of the main scheme.
The power of the Secretary of State to make payments to housing associations in respect of right to buy discounts would be established by clause 62 of the Housing and Planning Bill 2015.
The Government will provide funding for the pilot. The five housing associations will be compensated for their administrative costs up to the point of sale, and once the Housing and Planning Bill receives Royal Assent, would be compensated in full for the cost of the discounts.
Expenditure on the implementation of the pilot, including routine administration, communication, marketing, valuation and legal costs will take place relying on the sole authority of the Supply and Appropriation Act, subject to eligibility and approval. Expenditure will be met from the Department for Communities and Local Government’s existing budget.
The funding of sales and the contractual commitment to sales will be contingent upon the Housing and Planning Bill receiving Royal Assent.