Why UK councils are buying back homes to ease housing shortages

The number of council homes in England has dropped from housing 30% of households in the late 1970s to just 6% today. That shift didn’t happen by accident — it’s the result of decades of right-to-buy sales that have left local authorities with a fraction of the stock they once had. Here’s what you actually need to know.

2.4 million
Council homes sold since 1980 under Right to Buy
Common Wealth

41%
Of those sold homes now owned by private landlords
Common Wealth

303,000+
Homes empty for over six months in England
Action on Empty Homes

1.3 million
Households on social housing waiting lists
Gov.uk

The numbers tell a story of imbalance. While 18,500 council homes are expected to be sold off in 2025-26 — more than eight times the number built that year — over a million homes sit empty across the country. Councils are now turning to a different strategy: buying homes back.

Buying back is faster than building
Acquisitions from the private market can be completed in months, not years. No planning permission, no infrastructure delays, no multi-year build programmes.

Empty homes are a ready resource
Over 300,000 homes have stood empty for more than six months. Using even a fraction of them could cut waiting lists and reduce homelessness spending.

Legal powers already exist
Councils can use Compulsory Purchase Orders and Empty Dwelling Management Orders to acquire empty properties. The framework is there — using it is the challenge.

It can save public money
A 2024 Joseph Rowntree Foundation report found buyouts offer better value than paying housing benefit to private landlords or funding temporary accommodation.

Right to Buy-back and the council home reversal

The term you’ll hear most often is right to buy-back. It’s not a single national programme but a growing set of local and regional schemes where councils purchase former social homes — or any suitable property — from the open market to add back to their housing stock.

Right to Buy-back
Schemes where local authorities buy homes from the private market — often ex-council houses sold under Right to Buy — to restore them as social or affordable housing.

The Greater London Authority ran a pilot in 2021 that acquired around 1,300 homes in its first year. It has since launched the Council Homes Acquisition Programme (CHAP), aiming to buy 10,000 homes over the next decade. What I tend to notice is that these schemes are spreading because they solve a timing problem: building a new council house takes years, but buying an existing one can take weeks. For a deeper look at how the broader market is shifting, generational shifts in UK property explain why this matters more than ever.

Why councils are turning to buy-backs now

The housing crisis isn’t abstract. Over 1.3 million households are on social housing waiting lists in England, while in 2023/24 there was a net loss of 650 social rent homes — 20,560 lost against just 19,910 delivered. Building alone won’t close that gap quickly enough.

The economics of temporary accommodation make buy-backs even more urgent. Councils are spending heavily on private temporary housing for homeless families, often in poor-quality properties at high cost. A 2024 Joseph Rowntree Foundation report concluded that buying homes outright offers better value for public money than continuing to pay housing benefit to private landlords or funding temporary accommodation.

There’s also a practical advantage that’s hard to ignore. Unlike new builds, using existing empty homes requires no planning permission, no infrastructure delivery, and no multi-year build programmes. If even a fraction of England’s 300,000-plus long-term empty homes could be brought back into use, the impact on waiting lists and homelessness would be immediate.

The replacement gap
England sold 13,966 council homes through Right to Buy in 2023-24 but built only 2,260 council homes in 2024-25. For every home built, more than six were sold off.

But buying back isn’t a simple fix. In high-demand, high-cost areas, councils must be careful not to overheat local property markets by competing aggressively with private buyers. The strategy works best when targeted at empty homes or properties that won’t distort the market. If you’re navigating property transactions yourself, identifying undervalued properties requires a different set of skills than what councils use.

Where councils get stuck

The legal tools exist, but using them is another matter. Three interconnected barriers explain why compulsory purchase for empty homes remains rare.

Funding gaps stop acquisitions before they start

Confirming authorities expect clear evidence that a council has the money to acquire a property and implement its plans. Constrained local authority budgets make finding capital to buy at market value a genuine obstacle, especially in high-value areas. A council might identify the perfect empty property but lack the upfront cash to purchase it, even when the long-term savings on temporary accommodation would justify the cost.

Specialist knowledge is in short supply

Compulsory Purchase Orders (CPOs) require expertise in property law, public law, planning, valuation, and project management. Very few local authorities retain in-house teams with enough depth across all these areas. When the specialist leaves or retires, the institutional knowledge often leaves with them. This is where engaging a real estate lawyer early in the process can make the difference between a successful acquisition and a stalled one.

Organisational confidence is fragile

CPO requires political will, officer resource, and tolerance for complex, sometimes protracted processes. The legal framework is less opaque than it appears, but building internal confidence and cross-departmental capacity is challenging. Many councils simply don’t start because the process feels daunting.

→ Scroll right to see all columns

Source: MHCLG CPO guidance
StageWhat happensTypical timeline
Select enabling powerChoose the correct legal basis (e.g. Housing Act 1985, s.17)1–3 months
Justify the CPOGather evidence that acquisition serves the public interest3–6 months
Prepare and make the orderDraft the order, serve notices, publish in local press2–4 months
Consideration by confirming authorityPublic inquiry if objections are received6–12 months
ImplementationNotice to treat or General Vesting Declaration3–6 months
CompensationAssessed at open market valueOngoing

How councils are buying homes back

Heads up — some links on this page may earn me a small cut if you buy something. Doesn’t change the price for you, and I only link stuff that’s actually relevant.

Using Compulsory Purchase Orders effectively

The CPO process has six stages, but the key is starting earlier than you think necessary. Councils that begin CPO proceedings while still negotiating with owners save significant time and demonstrate seriousness. For empty homes specifically, the confirming authority considers how long the property has been vacant, what steps were taken to engage with the owner, and the outcome of those steps.

The evidence base matters most. Councils should document vacancy history, record every engagement attempt, and have a credible end-use scheme in place before making the order. Once confirmed, acquisition proceeds by notice to treat or General Vesting Declaration — the latter is particularly useful where owners are unknown or untraceable. Compensation is paid at open market value.

Empty Dwelling Management Orders as a lighter touch

EDMOs under the Housing Act 2004 allow local authorities to manage empty properties without acquiring them outright. This is useful when the owner can be located but has left the property vacant for a prolonged period. The council can take over management, carry out repairs, and let the property, with any profit returned to the owner after costs. It’s less confrontational than a CPO and can bring homes back into use faster.

Regional buy-back schemes and grant funding

The GLA’s Council Homes Acquisition Programme aims to buy 10,000 homes over the coming decade, funded through the Affordable Homes Programme. These schemes provide London councils with resources to buy homes and mitigate rising homelessness. Outside London, councils are exploring similar models, often partnering with registered providers to share costs and expertise.

What I’d look at here is the funding structure. Councils should explore alignment between Homes England grant funding, local authority capital programmes, and registered provider partnerships at the outset. The cost of getting the process right is a fraction of the cost of remedying defective orders or responding to judicial review. For anyone dealing with property disputes or acquisition complexities, consulting a property lawyer early can prevent costly mistakes.

The emerging role of right of first refusal

The Common Wealth report recommends expanding “right of first refusal” powers so local authorities become preferred buyers when ex-social homes enter the market. Spain already does this — its national public housing company has acquired 1,500 homes through this power since 2016, representing over one-fifth of new affordable homes in Barcelona. A national rollout of the London scheme, where the GLA bought 1,500 mostly ex-council homes in its first year, could dramatically accelerate buy-backs across England.

Frequently asked questions

Can a council buy any empty home, or only ex-council properties?
Councils can buy any property, but most schemes prioritise ex-council homes because they’re already configured as social housing and can be brought back into use quickly.
How long does a Compulsory Purchase Order take?
The full process typically takes 12–24 months from start to completion, depending on whether objections trigger a public inquiry.
Do councils pay market value for compulsory purchases?
Yes. Compensation is assessed at open market value, plus reasonable costs and any disturbance or loss payments the owner is entitled to.
What happens if the owner of an empty home can’t be found?
Councils can use a General Vesting Declaration to acquire the property without the owner’s signature. Compensation is held until the owner comes forward.
Does buying back homes reduce the supply for first-time buyers?
It can, if councils compete with private buyers for the same properties. That’s why most schemes target long-term empty homes or ex-council stock.
How many homes has the GLA bought back so far?
The initial Right to Buy-back scheme acquired around 1,300 homes. The new CHAP programme aims for 10,000 over the next decade.

Buy-backs won’t fix the crisis alone, but they buy time

The government has set a target of 1.5 million new homes during this Parliament, and has invested £39 billion for social and affordable housing. But building at that scale takes years. Buy-backs and empty home acquisitions offer something new builds can’t: speed. A home bought today can be occupied within weeks, not years. The question isn’t whether councils should buy back homes — it’s whether they can move fast enough to make a real dent in the waiting lists.

If this was useful, you might also want to read innovative solutions for the UK affordable housing crisis.

Sources and Further Reading

Is the UK property market pricing out young buyers? — Explores the affordability pressures driving demand for social housing.

Making money from UK property without owning a home — Alternative property investment strategies for a changing market.

Common Wealth (2025). The Right to Buy-Back: How councils can reclaim social housing. 🔗

Action on Empty Homes (2025). Empty Homes in England 2025. 🔗

Joseph Rowntree Foundation (2024). The case for buying back social homes. 🔗

Ministry of Housing, Communities and Local Government (2024). Compulsory purchase process and the Crichel Down Rules. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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