The Chartered Institute of Housing has estimated that about 7,000 Local Authority owned high-value homes per annum will become available under the Government’s Right-to-Buy scheme for Housing Association tenants. However the Government is estimating that there will be around 15,000 homes a year becoming available.
However this difference in estimates is very important as the Government is charging the Local Authorities up-front, in advance, a proportion of the money which they (the Government) estimates will be come available. I have already pointed out that this idea of up-front payment, in advance of actual sales, will cause Local Authorities cash-flow problems, but the fact that there looks like there is quite a big difference between what each party is estimating is going to cause Local Authorities even bigger cash-flow problems.
This is going to be very interesting – but not in a good way.