Swindon Council loses over £2m buying back “Yo-Yo homes” under Right to Buy
Research reveals financial impact of repurchasing council houses sold at discounts
Swindon Borough Council has lost over £2 million repurchasing council houses that were previously sold under the Right to Buy scheme in recent years, according to research conducted by The Big Issue.
The investigation found that the council bought back 21 houses sold under Right to Buy within the last 120 years, with a net loss averaging £103,507 per property.
The highest loss involved a house sold at a discounted rate of £54,050 in 2014, which the council repurchased in 2023 for £250,000 – a difference of £195,000. The smallest loss on a buyback was £48,500 for a property sold in 2016 for £71,500 and bought back in 2022 for £120,000.
One contributing factor to these losses has been the substantial discounts offered under previous Right to Buy rules, which allowed tenants to purchase council homes at significantly reduced prices.
Cabinet Member for Housing Councillor Janine Howarth highlighted a change in the maximum council house sale discount, effective from November 2024:
“Under the new rules, the maximum discount for a council house sale in the borough is now £30,000, whereas previously it had been £102,000,” Howarth explained during a council meeting in November.
Despite the financial disparity, the council said there are important reasons for repurchasing these “Yo-Yo homes.”
A council spokesperson stated: “The purchases were carefully considered and were chosen as part of a wider initiative to provide homes for families in urgent need of accommodation.”
The repurchase of Yo-Yo homes has occurred under successive administrations, including both the Conservative-run council in 2020, 2021, and early 2023, and the Labour-led council later in 2023 and into 2025.
The issue of retaining affordable social housing stock remains a cross-party challenge, prompting ongoing discussions at the Ministry of Housing, Communities and Local Government about reforming the Right to Buy scheme.
A ministry spokesperson acknowledged the need for change:
“We want to ensure that council tenants who have lived in, and paid rent on, their social homes for many years can retain the opportunity to own their home.
“However, reform of Right to Buy is essential to better protect much-needed social housing stock, boost council capacity, and build more social homes than we lose.”
Had Swindon Borough Council not incurred a £2 million loss repurchasing Yo-Yo homes, those funds would still have been restricted for use within social housing. However, the additional money could have contributed to repairs, maintenance, and much-needed improvements to existing homes.
As discussions continue at national level, local councils are hopeful that reforms to the Right to Buy scheme will better address the financial and inventory strain caused by the repurchase of Yo-Yo homes, while balancing the needs of tenants and communities.