North Yorkshire Council
Executive Member for Culture, Arts and Housing
14 January 2026
Right to Buy Policy
Report of the Corporate Director Community Development
1.0 PURPOSE OF REPORT
1.1 The purpose of the report is to seek approval from the Executive Member for Culture, Arts and Housing to adopt the Right to Buy Policy, to manage the statutory Right to Buy scheme in a consistent, transparent and legally compliant manner by North Yorkshire Council.
2.0 SUMMARY
2.1 This report highlights the need for North Yorkshire Council (the Council) to adopt a single, unified Right to Buy Policy (see Appendix A) to govern the Council’s approach to administering the statutory Right to Buy scheme. The introduction of a formal policy will ensure consistency across the County and provide clarity for tenants and staff, addressing the current absence of any documented framework inherited from predecessor authorities.
2.2 Historically, Right to Buy applications have been processed in accordance with legislation, but without a formal policy or consistent procedures. This has led to variations in practice, limited transparency, and increased governance risks. The proposed policy addresses these issues by establishing a clear framework that aligns with statutory requirements and reflects best practice.
2.3 The policy sets out eligibility criteria, property exemptions, discount structures, and application procedures. It incorporates recent legislative changes, including the 2024 Discount Order, and embeds fraud prevention and post-sale compliance measures. By adopting this policy, the Council will ensure fair treatment of tenants, protect public assets, and strengthen operational governance across all housing services.
3.0 BACKGROUND
3.1 North Yorkshire Council’s Housing Revenue Account (HRA) Policy Framework for Landlord Services is a key component in the Council’s Housing Improvement Programme to meet the requirements of the Social Housing (Regulations) Act 2023 and to demonstrate compliance with the Consumer Standards set by the Regulator for Social Housing.
3.2 Work is underway to harmonise policies across the Housing Revenue Account functions. Transparency in decision-making around those policies is central to the revised Consumer Standards, as data-based decision making is a critical tool in the Council’s ability to demonstrate service improvement and delivery being driven by the specific needs and vulnerabilities of its tenants.
3.3 Following LGR, the new unitary authority inherited responsibility for approximately 8,500 council homes previously managed by the former stock-holding authorities of Selby District Council, Harrogate Borough Council, and Richmondshire District Council. Unlike other areas of housing management, none of these authorities had a formal Right to Buy policy in place. Applications were processed in accordance with statutory requirements, but without a unified framework or documented procedures
3.4 The absence of a formal policy has resulted in a fragmented and inconsistent approach to administering Right to Buy across the County. Tenants have lacked clear guidance on eligibility, discount entitlements, and application processes, while staff have operated without a single reference point for decision-making. This has created governance risks and limited transparency.
3.5 Recent legislative changes have highlighted the need for a clear, consistent policy. The most significant update is the Housing (Right to Buy) (Limits on Discount) (England) Order 2024, which came into force on 21 November 2024. This Order reduced the maximum cash discount for Right to Buy purchases in Yorkshire and Humber to £24,000, a substantial decrease from previous limits. This amendment requires the Council to apply the new cap consistently across all applications and ensure tenants are fully informed of the revised discount structure.
3.6 Without a unified policy, the Council risks non-compliance with statutory obligations, legal challenge, and unmanaged loss of affordable housing stock, particularly in rural communities where supply is limited and demand is high.
4.0 RIGHT TO BUY POLICY
4.1 The policy applies to all secure tenants of North Yorkshire Council who meet the statutory eligibility criteria under the Housing Act 1985. It provides a comprehensive framework for administering the Right to Buy scheme, ensuring legal compliance, operational transparency and fairness for tenants across the County.
4.2 The policy outlines the process for verifying eligibility. This includes confirming secure tenancy status, assessing the length of qualifying tenancies, and identifying any disqualifying factors such as possession proceedings or bankruptcy. This structured approach ensures that only tenants who meet the legal requirements are able to proceed with an application.
4.3 Discounts are calculated in accordance with statutory provisions, including the regional cash cap of £24,000 introduced by the Housing (Right to Buy) (Limits on Discount) (England) Order 2024. The policy also applies the cost floor rule, which prevents properties from being sold below the cost of construction, acquisition, or major works carried out within the last 30 years. These financial safeguards are designed to protect public investment and ensure that the Council’s housing assets are not undervalued through the Right to Buy process.
4.4 The policy identifies specific categories of properties that are exempt from the scheme. These include sheltered and supported housing for older or vulnerable residents, homes that have been significantly adapted for tenants with disabilities, temporary accommodation, and properties subject to demolition notices. These exemptions are essential to preserving housing stock for those with particular needs and maintaining the long-term sustainability of communities, especially in areas where supply is limited.
4.5 To ensure transparency and consistency, the policy outlines standard procedures for valuations, issuing offer notices, and completing sales. It also encourages tenants to seek independent financial and legal advice before committing to purchase, recognising the long-term implications of homeownership. Fraud prevention is a key component of the policy, with measures such as identity verification, tenancy audits, and investigation protocols embedded throughout. These controls help safeguard public assets and maintain the integrity of the scheme.
4.6 Following the sale of a property, the policy sets out clear post-sale conditions. These include the requirement to repay a proportion of the discount if the property is sold within five years, as well as restrictive covenants that limit inappropriate alterations or changes of use. For leasehold properties, such as flats and maisonettes, the policy outlines obligations related to service charges and adherence to lease terms. These provisions ensure that the Council’s interests are protected and that properties continue to be managed responsibly after sale. In addition, where the rural restriction does not apply, there is an obligation to offer the Council a right of first refusal if the property is sold within 10 years.
4.7 In recognition of the unique challenges faced by rural communities, the policy includes specific protections for homes sold in designated rural areas. These protections are designed to ensure that properties remain available to local people and support the long-term viability of rural housing stock. In line with Section 157 of the Housing Act 1985, the policy applies resale restrictions to properties in designated rural areas, including National Parks, National Landscapes (formerly AONBs), and smaller settlements. These restrictions require that any future purchaser must demonstrate a qualifying local connection.
4.8 The policy defines a qualifying local connection as having lived or worked in the area for at least three years, or having close family ties (e.g., parents, children, or siblings who are permanent residents). The Council’s position is that Section 157 restrictions will remain in place to preserve affordable housing for local people and maintain the integrity of rural protections. Following Scrutiny feedback and legal advice, the policy now permits temporary consent for disposal outside the restriction in exceptional circumstances. This is subject to strict evidential requirements, including: proof of 12 months’ marketing; marketing materials that clearly state the restriction; an independent valuation confirming fair market value; and evidence of market activity, or a signed employment offer or contract confirming the purchaser will work at an operational base within the local area.
5.0 REGULATOR OF SOCIAL HOUSING CONSUMER STANDARDS
5.1 The Regulator of Social Housing sets consumer standards that local authorities must meet in delivering landlord services. The adoption of this Right to Buy Policy supports compliance with these standards by ensuring transparency, fairness, and consistency in how the statutory scheme is administered.
5.2 The policy aligns with the Transparency, Influence and Accountability Standard by providing tenants with clear, accessible information about their rights and responsibilities under the Right to Buy scheme and signposting them to independent advice. It also supports the Tenancy Standard by setting out clear eligibility criteria and application processes, ensuring that tenancies are managed lawfully and consistently across the Council’s housing portfolio.
5.3 Failure to implement a unified policy could expose the Council to governance risks, inconsistent decision-making, and potential regulatory scrutiny. By adopting this policy, the Council demonstrates its commitment to meeting the Regulator’s Consumer Standards and maintaining strong systems of control and accountability.
6.0 CONSULTATION UNDERTAKEN AND RESPONSES
6.1 Internal consultation has been undertaken with key stakeholders, including Housing Management and Legal Services. Their feedback has informed the development of the policy, ensuring that it is legally robust, operationally practical, and aligned with the Council’s governance requirements.
6.2 Due to the statutory nature of the Right to Buy scheme, the scope for tenant consultation is limited. The policy is primarily driven by legislative requirements, which restrict the extent to which tenant feedback can influence core provisions such as eligibility criteria and discount structures.
6.3 However, in line with the Council’s commitment to transparency and tenant engagement, the draft policy was shared with involved tenants for comment. Tenants commented that the document was easy to read and follow, which supports the Council’s aim of producing clear guidance. One tenant queried whether Right to Buy applies in small parishes, citing Shaw Mills as an example. This feedback highlighted the need to ensure that the policy clearly explains eligibility criteria and any statutory exclusions, to avoid misunderstanding. The Policy has been reviewed following this.
6.4 The policy was also presented to the Housing and Leisure Overview and Scrutiny Committee on 1 December 2025. Members were asked to consider two specific aspects of this policy:
· Whether the policy should allow disposals of properties previously sold under Right to Buy subject to Section 157 restrictions where the property has been marketed for at least 12 months at a realistic market value and no eligible local buyer has come forward?
· Whether the policy should allow disposals of properties previously sold under Right to Buy subject to Section 157 restrictions where the potential purchaser can evidence a confirmed offer of employment in the protected area?
6.5 During the discussion, Members supported the principle of introducing flexibility in exceptional cases, provided that robust evidence requirements were in place. They raised several queries. First, Members asked whether the definition of “local” could be widened, for example by applying a 10-mile radius or extending eligibility to the whole of North Yorkshire. It was confirmed that this is not possible because the definition of “local” is prescribed by legislation and linked to designated parishes, National Parks, and National Landscapes, and policy cannot override these statutory boundaries.
6.6 Members also asked whether consent could be granted with a condition that the purchaser occupies the property as their primary residence. It was confirmed that Section 157 relates only to disposal, not occupation, and imposing a primary residence condition would require a restrictive covenant or planning condition, which would be difficult to enforce and resource-intensive.
6.7 In addition, Members suggested adopting evidential standards similar to those used for agricultural occupancy conditions. The policy has therefore been amended to include clear evidential requirements for considering consent. These include proof that the property has been marketed for at least 12 months, marketing materials that clearly state the Section 157 restriction, an independent valuation confirming fair market value adjusted for the restriction, and proof of market activity including details of offers received.
6.8 Finally, Members asked how many properties this is likely to apply to. It was noted that exact figures are not available, but the restriction applies to all properties within designated rural parishes, National Parks, and National Landscapes across North Yorkshire, so the potential scope is significant.
6.9 Following Scrutiny feedback and subsequent legal advice, the policy has been amended to include a mechanism for granting consent for disposal outside Section 157 restrictions in exceptional cases, subject to robust evidence requirements. It also clarifies the evidential standards that must be met and confirms that Section 157 restrictions will not be removed, but temporary consent may be considered where justified.
7.0 CONTRIBUTION TO COUNCIL PRIORITIES
7.1 The introduction of a unified Right to Buy Policy makes a meaningful contribution to the Council’s strategic priorities. It ensures compliance with statutory obligations while establishing a clear governance framework that reduces risk, promotes transparency, and supports accountable decision-making.
7.2 By harmonising practices across the County, the policy promotes fairness and consistency, ensuring that all eligible tenants are treated equitably regardless of location. It also enhances the Council’s ability to safeguard rural housing stock, supporting the long-term sustainability of communities where supply is limited and demand is high.
7.3 Although the policy is driven by legislation, it reflects the Council’s commitment to tenant engagement by offering clear guidance and signposting to independent financial and legal advice. This empowers tenants to make informed decisions about homeownership and understand the implications of purchasing their home.
7.4 The policy also delivers operational benefits. A single, consistent framework simplifies staff training, improves accuracy, and enables more efficient processing of applications, contributing to the Council’s wider goal of delivering effective and responsive housing services.
7.5 Finally, the policy supports the Housing Improvement Programme by embedding strong governance and accountability measures. It ensures that housing services are delivered in a transparent, consistent, and legally compliant manner, reinforcing the Council’s commitment to continuous improvement.
8.0 ALTERNATIVE OPTIONS CONSIDERED
8.1 In developing this policy, the Council considered two options. The first was to continue operating without a formal Right to Buy policy, relying solely on statutory requirements. This option was rejected because it would perpetuate inconsistent practices across the County, limit transparency for tenants, and expose the Council to governance and compliance risks.
8.2 The second option, and the preferred approach, was to introduce a comprehensive, unified Right to Buy Policy. This option ensures compliance with legislation, promotes fairness and consistency, and strengthens governance. It also provides clear guidance for tenants and staff, reducing risk and supporting efficient service delivery.
9.0 IMPACT ON OTHER SERVICES/ORGANISATIONS
9.1 The adoption of the Right to Buy Policy will primarily affect Housing Management and Legal Services, who are already delivering the scheme in line with statutory requirements. While no major changes to operational procedures are anticipated, the policy provides a formal framework that reinforces existing practices and supports consistency. Business Support will continue to process applications, and Finance teams will ensure compliance with receipt-handling and accounting rules. No significant impact is expected on other Council services or external organisations, beyond routine liaison with HM Land Registry and mortgage lenders.
10.0 FINANCIAL IMPLICATIONS
10.1 The statutory Right to Buy scheme has ongoing financial implications for the Council’s Housing Revenue Account (HRA), primarily through the disposal of council-owned housing at a discount. This reduces rental income and affects the long-term availability of affordable housing stock. However, these disposals occur regardless of the adoption of this policy. The policy itself does not introduce new financial impacts but instead formalises existing procedures, ensuring that applications are managed consistently, transparently, and in accordance with legislative requirements.
10.2 The Housing (Right to Buy) (Limits on Discount) (England) Order 2024 introduced a regional cash cap of £24,000 for Yorkshire and Humber. While this reduces the maximum discount compared to previous levels, the sale of properties at below market value still represents a significant financial consideration for the Council.
10.3 Receipts from Right to Buy sales are subject to strict rules under the Local Government Act 2003 and associated regulations. A proportion of receipts must be returned to central government, and the remainder can only be used for specific purposes, such as funding new affordable housing. This limits the Council’s flexibility in reinvesting proceeds and requires careful financial planning to ensure compliance.
10.4 The policy also addresses the cost floor rule, which prevents properties from being sold at a price lower than the cost of construction or major works undertaken within the last 30 years. This safeguard helps protect public investment but requires accurate record-keeping and valuation processes.
10.5 While the policy does not introduce new financial obligations beyond those required by law, it strengthens governance by ensuring that discounts, valuations, and receipts are applied consistently and transparently. This reduces the risk of error, challenge, or financial loss arising from inconsistent practice.
10.6 In summary, the financial impact of the policy is inherent to the statutory Right to Buy scheme. The introduction of a unified policy does not increase costs but ensures that the Council manages these implications effectively, complies with current legislation, and maximises opportunities to reinvest receipts in affordable housing provision. Broader reforms to the Right to Buy scheme are currently under consultation and have not yet been implemented.
11.0 LEGAL IMPLICATIONS
11.1 Legal considerations have been embedded throughout the development and content of this report, particularly in relation to statutory compliance, discount application, property exemptions, and post-sale conditions.
11.2 The Right to Buy Policy formalises the Council’s legal obligations under the Housing Act 1985 and associated regulations, ensuring that applications are processed lawfully and consistently.
11.3 By adopting a unified policy, the Council mitigates risks of legal challenge, strengthens governance, and provides a clear framework for staff and tenants. This approach supports ongoing compliance and reinforces the Council’s commitment to legal accountability.
11.4 The policy will be subject to regular review to ensure it remains aligned with future legislative changes and regulatory requirements.
12.0 EQUALITIES IMPLICATIONS
12.1 An Equalities Impact Assessment Form (see Appendix B) has been completed and reviewed internally, which has identified that the proposal will have no negative impact on anyone with any protected characteristics.
12.2 Mitigation will be taken through robust governance assurance on complaints, led by a quarterly complaints report.
12.3 A key consideration is the accessibility of this policy, and it is proposed that the policy be publicised via the tenants newsletter, and available on the website, including in an easy read format. A hard copy of the policy will be provided to any tenant upon request and in other formats as required.
13.0 CLIMATE CHANGE IMPLICATIONS
13.1 A Climate Change Impact Assessment (CCIA) screening form has been completed (see Appendix C), which has concluded that the policy results in no positive or negative climate change impacts.
14.0 PERFORMANCE IMPLICATIONS
14.1 The introduction of the Right to Buy Policy does not create any new reporting requirements, as it formalises existing statutory processes rather than introducing additional operational measures. Performance monitoring will continue to be based on existing data collection practices.
14.2 Specifically, the Number of Enquiries and Number of Completions, already captured through the annual Local Authority Housing Statistics (LAHS) return, will be used to inform internal reporting. These figures will be added to the Council’s corporate Quarterly Report on an annual basis, ensuring visibility at senior management level and enabling strategic oversight of Right to Buy activity.
14.3 This approach supports proportionate and consistent monitoring, aligning with existing reporting cycles and ensuring that Right to Buy performance is tracked without duplicating effort or introducing unnecessary administrative burden.
15.0 POLICY IMPLICATIONS
15.1 The adoption of this Right to Buy Policy replaces any existing arrangements or informal practices previously used to administer the statutory scheme. It establishes a single, unified framework for North Yorkshire Council, ensuring compliance with legislation and consistency across all housing services. This policy forms part of the Council’s Housing Revenue Account Policy Framework and aligns with the Housing Improvement Programme.
16.0 RISK MANAGEMENT IMPLICATIONS
16.1 The statutory Right to Buy scheme presents several risks that require careful management. One significant risk is legal challenge if the Council fails to meet statutory requirements under the Housing Act 1985 and associated regulations. Non-compliance could result in disputes, complaints, or judicial review, exposing the Council to reputational and financial damage.
16.2 Another key risk is the loss of affordable housing stock, particularly in rural areas where supply is limited and demand is high. The sale of council homes under Right to Buy reduces the availability of social housing, which may impact the Council’s ability to meet housing need and deliver its strategic objectives.
16.3 Fraudulent applications also pose a risk, including tenancy fraud, identity fraud, or misuse of the scheme, which could lead to financial loss and undermine public confidence. Operational risks such as inconsistent application of the policy or failure to meet statutory timescales may further compromise governance and service delivery. Financial risks could arise from incorrect discount calculations or failure to apply cost floor rules, resulting in breaches of statutory obligations.
16.4 These risks will be mitigated through robust eligibility checks, comprehensive fraud prevention protocols including identity verification and tenancy audits, and regular policy reviews supported by governance assurance. Strong financial controls and accurate record-keeping will safeguard compliance. In addition, rural protections such as Section 157 resale restrictions will be applied to preserve housing stock in designated areas, ensuring homes remain available to local people and supporting the long-term sustainability of communities.
17.0 CONCLUSIONS
17.1 The introduction of a unified Right to Buy Policy is essential for North Yorkshire Council to ensure compliance with statutory obligations, promote fairness and transparency, and strengthen governance across housing services. The policy addresses risks associated with inconsistent practices, supports the protection of rural housing stock, and provides clear procedural guidance for tenants and officers. Its adoption will harmonise processes following Local Government Reorganisation and reinforce the Council’s strategic priorities without introducing new financial or legal obligations beyond those already required by law.
18.0 REASONS FOR RECOMMENDATIONS
18.1 The recommendation to adopt the Right to Buy Policy is based on the need to comply with the Housing Act 1985 and associated regulations, implement recent legislative changes including the Housing (Right to Buy) (Limits on Discount) (England) Order 2024, and mitigate governance and financial risks. The introduction of a unified policy supports consistent application of statutory requirements, safeguards public investment, and provides clarity for both tenants and staff.
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19.0 |
RECOMMENDATION(S)
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19.1
19.2 |
That the Executive Member approves the adoption of the Right to Buy Policy as set out in Appendix A.
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APPENDICES:
Appendix A – Right to Buy Policy
Appendix B – Equalities Impact Assessment (EIA)
Appendix C – Climate Change Impact Assessment (CCIA) Screening Form
BACKGROUND DOCUMENTS: None
Nic Harne
Corporate Director – Community Development
County Hall
Northallerton
6 January 2026
Report Author – Imogen Downie, Housing Policy and Strategy Officer (Service Improvement)
Presenter of Report – Imogen Downie, Housing Policy and Strategy Officer (Service Improvement)
Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.