Birmingham City Council continues to lose hundreds of its most desirable council properties every year through the contested ‘right to buy’ scheme, a situation that hampers its efforts to house families currently reliant on temporary accommodation.
An investigation by BirminghamLive has revealed that the council is facing significant challenges as the rate of council homes sold to tenants under ‘right to buy’ far exceeds the number of new homes it can construct or acquire. This leaves many families living in Bed & Breakfasts, homeless centres, and other short-term arrangements, underscoring the pressing need for more social housing.
Hopes rest on proposed tougher regulations under the current Labour government to slow the pace of sales. However, some critics argue that ‘right to buy’ should be completely abolished across England, following the examples of Wales (2019) and Scotland (2016), where the policy has already been scrapped.
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Former councillor and housing expert Scott Brereton described the situation as a “leaky bucket”: “Every time we build new council homes, others disappear through Right to Buy and Right to Acquire. We’re trying to fill the bath with the plug pulled out.” He added, “The biggest irony? Thousands of former council homes are now owned by private landlords and rented back to councils at far higher cost to the taxpayer. We’ve effectively privatised public assets, then pay a premium to use them.”
Critics also point out that it is often the ‘best’ maintained and most desirable council homes that are sold under the scheme, leaving behind properties that are older and more costly to maintain.
The ‘right to buy’ scheme was introduced in 1980 under Prime Minister Margaret Thatcher, intended to give long-term tenants the opportunity to purchase their council homes at a significant discount and encourage home ownership. At that time, Birmingham City Council managed approximately 120,000 homes; today, that number has declined to under 60,000, though it remains one of the largest social housing providers in the country.
Supporters argue that the policy has enabled thousands of families to become homeowners, fostering community ties and social mobility. Prime Minister Andy Burnham has pledged to lead a substantial council housing construction effort to address current shortages.
Analysis of data gathered through the Freedom of Information Act, conducted by BirminghamLive in collaboration with the BBC data unit, highlights the disparity between homes sold and those added to the council’s housing stock since 2020. Over this period, 2,323 homes were sold to tenants, averaging more than 400 annually. In comparison, the council built 480 new homes and acquired an additional 755 properties, totalling 1,235 additions-significantly fewer than those lost.
Currently, around 35,000 households are on Birmingham’s housing register, many waiting years for vacancies amid overcrowded or temporary living situations. This includes thousands of children living in B&Bs and homeless centres, often incurring additional costs.
The current coalition council, comprising Green, Liberal Democrat, and Better Birmingham Independent members, acknowledges the challenges posed by ongoing property sales and years of underinvestment.
Former head of housing David Cusack emphasised the need to end ‘right to buy’ to protect public assets: “It should not be viewed as stopping people with aspirations to buy, but as protecting a valuable public asset for future use by people who need it. Waiting lists demonstrate this today more than ever.”
Tom Murtha, a housing campaigner involved in early efforts to limit the policy’s expansion, called for a complete ban, describing it as the “main cause of the current housing crisis”.
Housing activist Edward Harkins described the policy as “inequitable, iniquitous, bad economics and insanely counter-productive,” noting that its abolition in Scotland resulted in no electoral backlash.
Conversely, supporters maintain that ‘right to buy’ remains a vital policy for fostering home ownership and reducing inequality.
A government consultation last year suggested tightening eligibility criteria, but stopped short of abolishing the scheme. From April, new measures include increasing the minimum tenancy length before purchase eligibility from three to ten years, capping discounts at 15% of property value, and exempting new builds from ‘right to buy’ for 35 years.
Despite these changes, critics argue they do not fully address the scale of the problem in Birmingham and beyond.
The council now depends on partnerships with housing associations to partially fill the housing gap. Cabinet Member for Housing Cllr Baber Baz (Lib Dems) stated: “By working closely with registered providers and developers, the council aims to deliver 1,083 affordable homes each year as outlined in the 2023-2028 Housing Strategy.”
He added that the council’s acquisition programme targets three- and four-bedroom homes to quickly house families but is not a replacement for new construction.
“Birmingham is facing unprecedented pressure on its housing register and a shortage of available social housing, like any council in the country,” Cllr Baz said. “While the planned delivery of affordable homes exceeds the number lost each year through Right to Buy, growing demand continues to outstrip supply.”
The council recognises the benefits of home ownership but acknowledges that ongoing losses through ‘right to buy’, combined with historic underinvestment, contribute to a national crisis.
Financial limitations, including restrictions on retaining sales receipts and increasing construction costs, further complicate efforts to replenish housing stock.
The council’s summary of housing stock changes demonstrates the continuing imbalance between homes sold and those built or acquired from 2020 to 2026, emphasising the need for a national solution.
The figures exclude affordable housing delivered by registered providers or developers.
If you have purchased a home under the ‘right to buy’ scheme or have strong views on its impact, please contact [email protected].