Part 3 of the Housing (Miscellaneous Provision) Act 2009 provides for an incremental purchase scheme in respect of newly built houses reserved by housing authorities for the purpose. Regulations to implement the Incremental Purchase Scheme for new homes were made in June 2010. The scheme is available to all housing authorities.
It is acknowledged that the current economic climate, reduced demand for house purchase including purchase by local authority tenants, constraints on availability of credit to applicants and a scale back of new-build local authority houses have all combined to limit the potential of the scheme at present.
It remains the intention, as previously announced, that the 1995 tenant purchase scheme for houses will be wound down in 2012 to be replaced by a new scheme based on the incremental purchase model. This change will require amending legislation.