MHCLG updates Right to Buy receipts guidance with new flexibilities
The Ministry of Housing, Communities and Local Government (MHCLG) has updated its guidance on the Right to Buy (RTB) pooling system, reflecting changes made since 1 April 2021. The guidance revises the terms of Retention Agreements under section 11(6) of the Local Government Act 2003, enabling local authorities to retain RTB receipts, and amends the Local Authorities (Capital Finance and Accounting) Regulations 2003, SI 2003/3146. The updated guidance includes measures from the government’s 2 July 2025 response to its RTB reform consultation. These measures extend the flexibilities introduced in July 2024 indefinitely, further simplify the rules and allow the combination of RTB receipts with grant funding. The changes aim to support local authorities in increasing the supply of social and affordable housing from the 2026–27 financial year.