The position and role of former public sector homes in the owner-occupied sector: new evidence from the Scottish housing market

By 1995, around one-third of Scotland's public sector housing stock (as at 1980) had been sold to sitting tenants under the 'Right to Buy'. An estimated 67 000 of these 300 000 dwellings have subsequently been resold on the open market. At the peak of the resale activity, in 1992, the volume of resales reached just under 14 000 transactions, accounting for 14 per cent of all 'second-hand' market activity in that year. There appears to be a substantial differential between the realised market values of former public sector homes as compared with other second-hand dwellings, characteristic of regions of England where demand for housing is less intense. There is also evidence of considerable variations in prices of former public sector properties within districts, depending on the reputation of the neighbourhood concerned. Survey evidence shows that the resale market is not predominantly a first-time-buyer market. Half of those who have purchased former public sector dwellings were already owner-occupiers at the time. For most of those concerned, buying an ex-RTB property presented an opportunity to trade up in the market in terms of size and type. Nevertheless, for a considerable proportion of first-time buyers, the availability of a former public sector property may have been crucial in facilitating access to home-ownership. Significantly, one-third of this group had previously contemplated social renting.
Introduction Since 1979, the sale of public housing through the 'Right to Buy' has been a central feature of the British government's housing policy. By 1995 a total of more [...]