Local authorities are expected to obtain maximum value for money in respect of their expenditure, whether capital or current, on all their programmes, including housing.
Local authorities have been requested, in planning their housing programmes, to systematically consider the extent to which the programmes include the purchase of private houses and to have effective arrangements in place for such purchases. It is a matter for individual authorities, subject to the equitable and efficient use of the capital resources available to them, to assess the balance of advantage in terms of value for money between constructing a new house and purchasing a private house, either new or second-hand. In nominating their annual programme of starts, authorities are expected to include a realistic target for private house purchases. It is open to an authority, within their authorised capital allocation, to substitute, at any time, the purchase of private houses for the building of new houses.