Housing associations have been given just one week to decide whether they accept a proposal to introduce the government’s controversial Right to Buy extension voluntarily.

Under the plans, put forward by the National Housing Federation (NHF), housing associations would not be compelled to sell stock, but would instead enter into a voluntary agreement with the government, to allow tenants to buy their properties if they wished to do so.

The proposal includes requesting a guarantee from Government that it would fund the Right to Buy discounts and a pledge from housing associations to build a new home for every one sold off.

The deal would enable the following:

• Every housing association tenant would have the right to purchase a home at Right to Buy level discounts, subject to the availability of funding for the scheme. The presumption is that housing associations would sell the tenant the property in which they live.
• Housing associations would have the discretion not to sell, for example where a property is in a rural area and could not be replaced, or where it is adapted for special needs tenants. In that event, housing associations would offer tenants the opportunity to use their discount to buy an alternative home from either their own or another association’s stock.
• The Government would compensate the housing association for the discount offered to the tenant and housing associations would retain the sales receipt to enable them to reinvest in the delivery of new homes.
• Housing associations would be able to use sales proceeds to deliver new supply and would have flexibility to replace rented homes with other tenures such as shared ownership.

David Orr, NHF chief executive, said: “I am confident that our membership will see that this is a good proposal: one that’s good for housing associations and their tenants.

“Housing association households could get the opportunity to realise their dreams of home ownership, and housing associations would be able to replace the homes sold, boosting the nation’s housing supply.

“It also means housing associations could retain the independence which has allowed them to channel billions of pounds in private investment into home building over the last 30 years.

“Housing associations have always been committed to helping their tenants get on in life, whether that’s finding a job or buying their first home. So we are urging our members to sign up to work with Government to deliver this new Right to Buy proposal.”

However, concerns have been raised over the deadline. Housing associations have until just 5pm this Friday to respond to the proposals.

Shelter chief executive Campbell Robb said: “Offering just one week to decide something that will dramatically alter access to affordable housing in this country is unacceptable.

“Something this big needs serious consideration, not a seven-day deadline.

“What matters here are the millions of people suffering at the hands of our housing shortage, and rushing a decision through is simply not in their best interests.

“We need the government to come up with a well thought-out and comprehensive plan that can actually deliver the genuinely affordable homes we desperately need, not more piecemeal schemes.”