Social landlord housing sales: April 2022 to March 2023
Information on the number of social landlord housing sales in Wales and their impact on dwelling stock for April 2022 to March 2023.
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Introduction
This annual statistical release presents information on housing sales by social landlords. It covers sales of both local authority and Registered Social Landlord (RSL) dwellings and includes the sale of social housing and other stock. The data are used by the Welsh Government and local authorities to monitor trends in social housing sales in the context of the overall level of Welsh housing stock.
Historical data for this collection can be found on the StatsWales website.
Main points
Between 2021-22 and 2022-23, the overall number of social landlord housing sales decreased. This followed an increase in sales in 2021-22 compared to 2020-2021. Due to the COVID-19 pandemic, data for 2019-20 were not collected.
In 2022-2023 there continued to be a considerable shift from statutory to non-statutory sales, which is likely to be due to the ending of the Right to Buy and Right to Acquire Schemes in January 2019. (Further information is available in the quality report). The small number of statutory sales, via the Right to Buy scheme, in 2022-23 were sales that were approved to be extended due to the COVID-19 pandemic.
- Between 2021-22 and 2022-23, sales decreased by 32% to 357 dwellings. 341 of these were Registered Social Landlord (RSL) sales (a decrease of 166, 33%) and 16 were local authority sales (an increase of 1).
- Since 2008-09, the majority of all social landlord housing sales have been by RSLs; with 2022-23 reporting the second highest proportion to date at 96% of all sales from RSLs (the highest proportion was seen in 2021-22).
- 99% of the sales during 2022-23 were non-statutory sales.
Figure 1: Sales by social landlord type, 2011-12 to 2022-23
Description of Figure 1: A bar chart showing that the number of sales has fluctuated since 2011-12, with a decrease seen in 2022-23 compared to the previous year. The majority of sales each year since 2011-12 have been by registered social landlords.
Source: Social landlord housing sales from Local Authorities and RSLs
Total social landlord housing sales by period and provider type (StatsWales)
[Note 1] For 2013-14 onwards there were some changes to definitions. For more information, please see the quality report.
[Note 2] Data for 2019-20 was not collected due to the COVID-19 pandemic.
Background
The tenure distribution of current dwelling stock is influenced by the sales of social landlord housing stock through Right to Buy and other schemes. Between 1 April 2022 and 31 March 2023, a total of 16 local authority and 341 Registered Social Landlord (RSL) dwellings were sold and, therefore, became private sector dwellings. These sales resulted in an increase of 357 dwellings in private sector stock – other factors such as new build and conversions will also affect levels of private sector stock.
During the time-period covered in this report there have been various changes in legislation. This includes the Housing (Wales) Measure 2011 as well as the Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (UK legislation). Whilst we have no specific evidence of how these legislation changes changed behaviour, it is likely there will have been an impact on the number applying to use the schemes in the period leading up to their abolition.
For further detail please refer to the accompanying quality report.
Types of social landlord housing
This release analyses data on all social landlord housing sales. The types of social landlord housing covered are outlined below.
Social housing
- General needs and sheltered housing let by social landlords at social rent
- Other supported housing
- Extra Care housing
- Non self-contained housing units
Non-social housing
- Properties at intermediate rents (including Rent First)
- Shared Equity (including Homebuy)
- Low-cost home ownership
- Shared ownership
- Flexible tenure for the elderly
- Residential care homes
- Nursing care homes
- Properties at market rents
- Other investment properties
All social landlord housing sales
The information shown in this release, on the number of housing sales by social landlords in Wales, is based on data provided by local authorities and RSLs. It covers statutory sales of social housing through the Right to Buy and Right to Acquire schemes, as well as non-statutory (voluntary and other) sales of stock held by local authorities and RSLs.
| Year | Right to Buy | Voluntary and Other | Total LA Sales |
Total Social Housing Sales [Note 1] |
|---|---|---|---|---|
| 2017-18 | 111 | 8 | 119 | 538 |
| 2018-19 | 154 | 7 | 161 | 801 |
| 2019-20 [Note 2] | - | - | - | - |
| 2020-21 | 37 | 3 | 40 | 397 |
| 2021-22 | 8 | 7 | 15 | 522 |
| 2022-23 | 2 | 14 | 16 | 357 |
Description of Table 1a: Table showing that the number of local authority sales decreased each year between 2017-18 and 2021-22 but has increased by one sale in 2022-23 compared to the previous year.
Source: Social landlord housing sales from Local Authorities and RSLs
| Year | Right to Buy and Right to Acquire | Voluntary and Other | Total RSL Sales | Total Social Housing Sales [Note 1] |
|---|---|---|---|---|
| 2017-18 | 125 | 294 | 419 | 538 |
| 2018-19 | 288 | 352 | 640 | 801 |
| 2019-20 [Note 2] | - | - | - | - |
| 2020-21 | 18 | 339 | 357 | 397 |
| 2021-22 | 2 | 505 | 507 | 522 |
| 2022-23 | 0 | 341 | 341 | 357 |
Description of Table 1b: Table showing the number of registered social landlord sales has fluctuated since 2017-18, with a decrease in 2022-23 when compared to the previous year.
Source: Social landlord housing sales from Local Authorities and RSLs
Total social landlord housing sales by period and sale type (StatsWales)
[Note 1] Total Social Housing Sales covers the total number of local authority and Registered Social Landlord dwellings sold.
[Note 2] Data not collected due to the COVID-19 pandemic.
“-“ no data
The total number of social landlord housing sales has been generally decreasing since the peak of over 7,000 sales in 2003-04. Since 2008-09 onwards, the lowest sales were 349 in 2009-10, whilst the highest were 801 in 2018-2019.
It is likely the high level of statutory sales in 2018-19 was due to applicants making use of the Right to Buy and Right to Acquire schemes ahead of their final abolition for existing stock in January 2019.
During 2022-23 the sale of dwellings decreased to 357, from 522 dwellings in 2021-22. The sale of RSL dwellings decreased to 341 (a decrease of 166, 33%) whereas local authority sales increased to 16 dwellings (an increase of 1)
Of the 357 dwellings sold, 111 (31%) were of social housing and 246 (69%) were of non-social housing which includes intermediate rented, shared equity and low-cost home-ownership properties. The number of social housing dwellings sold in 2022-23 was 30% lower than the 159 sold during 2021-22 and represented less than 0.1% of the entire social housing stock of 237,395 dwellings as at 31 March 2022. The number of non-social housing sales decreased by 32% in 2022-23 from the 363 sales in 2021-22. Further breakdowns can be found on the StatsWales website (Total social landlord housing sales by provider and sale type).
Sales by type
During 2022-23, 99% of all sales (355 dwellings) were non-statutory (‘voluntary’ and ‘other) sales.
Voluntary sales were the largest sales by type accounting for 32% of all sales (113 dwellings) as shown below in Figure 2. These include sales of a property where, for example, it is surplus to requirements due to low demand or where it is uneconomic to repair. Voluntary sales may cover both social housing and non-social housing.
There were 105 sales (30%) via the low-cost home ownership scheme. This scheme allows qualifying purchasers to buy a share of the property with a proportional rent payable on the remaining share to the social landlord.
A further 79 sales (22%) were via shared equity schemes including Home Buy schemes which allow those who are unable to meet their housing needs in the market to buy a home. Where the scheme is available the social landlord provides an equity loan of between 30% and 50% of the property purchase price. The loan can be repaid at any time but must be repaid when the house is sold.
The intermediate rented properties sales increased considerably from 5 sales in 2021-22 to 58 in 2022-23.
Figure 2: Percentage of sales by type, 2022-23
Description of Figure 2: A donut chart showing that just under two thirds of all sales were voluntary and Low Cost Home Ownership sales.
Source: Social landlord housing sales from Local Authorities and RSLs
Sales by local authority
The local authorities with the highest number of all sales during 2022-23 were Carmarthenshire (63 dwellings), Rhondda Cynon Taf (55 dwellings), Wrexham (33 dwellings), and Swansea (31 dwellings).
The local authorities with the lowest number of sales were Neath Port Talbot (2 dwellings), Merthyr Tydfil (3 dwellings), Powys and Gwynedd (both with 4 dwellings).
| Provider | Right to Buy and Right to Acquire | Voluntary and other | Total sales |
|---|---|---|---|
| Isle of Anglesey | 0 | 6 | 6 |
| Gwynedd | 0 | 4 | 4 |
| Conwy | 0 | 21 | 21 |
| Denbighshire | 0 | 10 | 10 |
| Flintshire | 0 | 6 | 6 |
| Wrexham | 2 | 31 | 33 |
| Powys | 0 | 4 | 4 |
| Ceredigion | 0 | 7 | 7 |
| Pembrokeshire | 0 | 6 | 6 |
| Carmarthenshire | 0 | 63 | 63 |
| Swansea | 0 | 31 | 31 |
| Neath Port Talbot | 0 | 2 | 2 |
| Bridgend | 0 | 14 | 14 |
| The Vale of Glamorgan | 0 | 18 | 18 |
| Cardiff | 0 | 14 | 14 |
| Rhondda Cynon Taf | 0 | 55 | 55 |
| Merthyr Tydfil | 0 | 3 | 3 |
| Caerphilly | 0 | 10 | 10 |
| Blaenau Gwent | 0 | 10 | 10 |
| Torfaen | 0 | 17 | 17 |
| Monmouthshire | 0 | 6 | 6 |
| Newport | 0 | 17 | 17 |
| Wales | 2 | 355 | 357 |
Description of Table 2: Table showing that in 2022-23, Wrexham was the only local authority with any statutory sales, with all local authorities having non-statutory sales.
Source: Social landlord housing sales from Local Authorities and RSLs
Total social landlord housing sales by provider and sale type (StatsWales)
Figure 3: Number of all social landlord housing sales by type of sale and by local authority area, 2022-23
Description of Figure 3: Bar chart showing that the majority of total sales came from a small number of local authorities.
Source: Social landlord housing sales from Local Authorities and RSLs
A small number (2) of statutory sales via the Right to Buy scheme were recorded in 2022-23 (both by Wrexham LA). These sales took longer than expected to complete due to COVID-19 pandemic. There were no statutory sales recorded by RSLs.
Carmarthenshire local authority recorded the highest number of non-statutory (voluntary and other) sales at 62, followed by Rhondda Cynon Taf at 55 sales.
Sales by landlord type
Prior to 2008-09, the majority of social landlord housing sales were of local authority dwellings.
The large-scale voluntary transfers of stock from local authorities to RSLs since 2007-08 however has increased the amount of housing owned and managed by RSLs and resulted in a sharp decline in local authority sales.
During 2022-23, RSL sales accounted for 96% of all sales (341 dwellings) and local authority sales accounted for 4% (16 dwellings).
Further information is provided in the accompanying quality report.
Figure 4: Number of sales by landlord type, 2006-07 to 2022-23
Description of Figure 4: Bar chart showing that the number of sales dropped dramatically after 2007-08, but then began increasing again to a new lower peak in 2018-19. In the last three years the number of sales has fluctuated, with almost all coming from registered social landlords.
Source: Social landlord housing sales from Local Authorities and RSLs
Total social landlord housing sales by period and provider type (StatsWales)
[Note 1] Data for 2019-20 was not collected due to the COVID-19 pandemic.
[Note 2] See the quality report for further details.
Just under a third of both local authority and RSL sales in 2022-23 were of social housing, with the remaining sales coming from non-social housing. The proportion of sales which were of social housing dwellings was higher for local authorities (38%) than for RSLs (31%), but numbers were lower from local authority dwellings, at 6, compared with 105 sales from RSL dwellings.
Figure 5: Number of registered social landlord (RSL) sales by type of sale, 2006-07 to 2021-23
Description of Figure 5: A bar chart showing that the number of registered social landlord sales has fluctuated between 2006-07 and 2022-23, with a peak in 2018-19. In recent years, almost all sales have been non-statutory.
Source: Social landlord housing sales from Local Authorities and RSLs
[Note 1] Data for 2019-20 was not collected due to the COVID-19 pandemic.
[Note 2] See the quality report for further details.
The number of statutory sales of RSL dwellings had been generally increasing each year since 2009-10 to 2017-18, before markedly increasing in 2018-19. However, since 2018-19 the number of statutory sales of RSL dwellings has drastically decreased in line with the final abolition of the Right to Buy and Right to Acquire schemes in January 2019. During 2022-23 there were no statutory sales of RSL dwellings compared with 2 in 2021-22.
Figure 6: Number of local authority sales by type of sale, 2006-07 to 2022-23
Description of Figure 6: Bar chart showing that following the drop in 2008-09, the number of local authority sales remained fairly low, with a marked decrease over the last 3 years. 2022-23 saw the lowest recorded number of local authority sales.
Source: Social landlord housing sales from Local Authorities and RSLs
[Note 1] Data for 2019-20 was not collected due to the COVID-19 pandemic.
[Note 2] See the quality report section for further details.
In contrast to RSLs, there were 16 local authority sales in 2022-23, 2 of which were statutory sales.
Over the five years between 2000-01 and 2004-05, there was an annual average of around 4,500 Right to Buy sales of local authority dwellings, dropping to around 1,500 a year during 2005-06 and 2006-07. Over the period from 2007-08 to 2010-11, many local authorities transferred their stock to RSLs and the number of local authority sales through Right to Buy decreased substantially, dropping to under 200 sales per year from 2008-09 onwards.
Glossary
This release analyses data on all social landlord housing sales. The types of social landlord housing covered are outlined below.
Social housing
This includes “stock at social rents” (i.e., general needs and sheltered housing), extra care, other supported housing and non-self-contained housing units.
Other (non-social housing)
This includes housing let at market rents, shared equity (including Homebuy), low-cost home ownership, shared ownership, rent to own, flexible tenure for the elderly, investment properties and other non-social housing such as residential care and nursing homes.
Statutory sales
Statutory sales include all social rented dwellings sold to tenants through the Right to Buy or Right to Acquire schemes.
Non-statutory sales
Non-statutory sales include ‘Voluntary’ and ‘Other’ sales. Voluntary sales include the sale of property which may be surplus to requirements due to low demand or is uneconomic to repair. ‘Other’ sales - these include those sold via shared equity (including Homebuy), low-cost home ownership and other shared ownership, rent to own and flexible tenure for the elderly schemes. They also include the sale of intermediate rented properties (including Rent First), other intermediate tenure dwellings such as residential and nursing homes and properties at market rent and other investment properties.
Right to Buy
The Right to Buy (RTB) scheme was introduced by the 1980 Housing Act and came into effect in October 1980. The RTB scheme allowed qualifying tenants of local authorities and RSLs to purchase the home they rented from the social landlord at discounted prices, according to the length of their tenancy. RTB discounts ranged from 32% to 70% of the market value, and prior to 14 July 2015 up to a maximum discount of £16,000, depending on the type of property, the residential area and time spent as a tenant of social housing. RTB did not apply to certain types of property and restrictions to subsequent sales applied in rural areas. This Scheme ended in January 2019.
Right to Acquire
The Right to Acquire (RTA) scheme was introduced by the 1996 Housing Act and came into effect from 1 April 1997. This scheme only applied to tenants of registered social landlords. The Right to Acquire scheme gave qualifying tenants of RSLs a right to purchase their home, if the property was provided using Social Housing Grant or was transferred from a local authority on or after 1 April 1997, subject to specified exceptions. Qualifying tenants were entitled, prior to 14 July 2015, to a discount of 25% of the value of the property, up to a maximum of £16,000.
Following the public consultation on the future of the Right to Buy and the Right to Acquire (referred to in paragraph 22 above), from 14 July 2015 onwards, the maximum discount available in relation to Right to Buy and Right to Acquire properties changed from £16,000 to £8,000. The change was made by the Housing (Right to Buy and Right to Acquire) (Limits on Discount) (Amendment) (Wales) Order 2015. This Order amended the Housing (Right to Acquire) (Discount) (Wales) Order 1997 and the Housing (Right to Buy) (Limits on Discount) (Wales) Order 1999 to reduce the discount available, in relation to both Right to Acquire and Right to Buy, to £8,000 from £16,000. Social landlords needed to ensure any applications served on them before 14 July 2015 were subject to a maximum discount of £16,000, but any applications served on them on or after 14 July 2015 were subject to a maximum discount of £8,000. This scheme ended in January 2019.
Voluntary sales
This includes the outright sale of property; for example, if the property is surplus to requirements due to low demand or is uneconomic to repair. They will include any sales to non-registered RSLs or the private sector and can be sales of both social and non-social dwellings.
Shared ownership
This scheme allows qualifying purchasers to buy a share of the property value with a proportional rent payable on the remaining share to the RSL.
Rent to Own - Wales
Rent to Own - Wales supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit. The scheme enables tenants of rental properties within the scheme, to build up a lump sum toward a deposit whilst they rent their home. The lump sum toward the deposit can then be used to help secure a mortgage to enable the purchase of the home.
Homebuy
The Homebuy scheme is administered by housing associations and helps people who are unable to meet their housing needs in the market to buy a suitable home. Where the scheme is available, the housing association provides an equity loan of between 30% and 50% of the property purchase price (although percentages may vary). When the loan is repaid, the amount repayable will be the same agreed percentage of the value of the property at the time. The loan can be repaid at any time, but must be repaid when the property is sold.
There are two ways that Homebuy loans are provided:
Housing associations can choose to sell any property in its ownership on Homebuy equity sharing terms. This will include sales of properties under ‘neutral tenure’ principles where newbuild properties are let or sold according to the need of the applicant.
‘Do-it-Yourself’ or ‘DIY’ Homebuy – eligible purchasers can choose a qualifying property from the open market and the RSL provides an equity loan for a percentage of the purchase price.
Extra care housing
Extra care sheltered housing’ or ‘assisted living housing’ offer a higher level of care than ‘sheltered housing’. The services offered vary between schemes, but meals, help with domestic tasks and some personal care are often provided. ‘Close care housing’ is usually located in the grounds of a care home, with staff from the home providing extra care and assistance.
Flexible tenure for the elderly
Includes specific housing schemes developed in 1990s to provide flexible tenure options for older people in housing schemes designed specifically for their needs.
Intermediate rent (including Rent First)
The unit is owned by the social landlord and the rent is set above the social level but below market level. They can be Welsh Government grant funded or landlord funded.
Low-cost home ownership
This schemed allows qualifying purchasers to buy a share of the property with a proportional rent payable on the remaining share to the social landlord.
Registered Social Landlords (RSLs)
RSLs are organisations that provide and manage properties for people who would otherwise be unable to afford to rent or buy privately. Registered social landlord (RSL) is the technical name for housing associations that are registered with the Welsh Government and are regulated to maintain a good standard of management.
Stock at social rents
These are self-contained wholly owned and managed by social landlords (local authorities and registered social landlords) and fall within the scope of the Welsh Government’s policy for social housing rents.
Rent First
Rent First is a subsidised intermediate rent solution providing people with a mid-market rental housing solution as well as potentially assisting them in the outright purchase of their home in the future. Rent First aims to help local authorities and housing associations meet their housing objectives. These include creating mixed income developments and communities which can access affordable properties to buy or rent.
Quality and methodology information
Detailed information on data quality and methodology can be found in the quality report.
