A pilot programme reinvesting money received from Right to Buy sales to increase a council’s housing stock has been deemed a success.

Southampton City Council completed 23 property purchases in 2024/25 using £5,480,500 of Right to Buy receipts.

The acquisitions needed to be completed before the end of March or the local authority risked having to send left over funds back to central government.

The council confirmed it expected that there would be no obligation to return any receipts due to the amount spent on property acquisitions in 2024/25.

The purchased properties will be used for families in need of temporary accommodation, reducing the local authority’s use of expensive hotels and bed and breakfast rooms.

Cllr Andy Frampton, cabinet member for housing, told the Local Democracy Reporting Service: “Our pilot project to spend Right to Buy receipts to increase the council’s housing stock has been positive and successful.

“The acquisition of 23 good quality, affordable properties will provide stable homes for families in housing need in the city, helping them work towards achieving their future goals.

“All rent received from residents in council accommodation is subsequently reinvested into our housing service, for the benefit of all our residents.”

The 23 properties consisted of four one-bed flats, 13 two-bed flats, one three-bed house, two two-bed houses and three two-bed bungalows.

Two of the acquisitions were located within the boundaries of Eastleigh Borough Council, with the others all in the Southampton City Council area.

The pilot programme was only possible due to temporary flexibilities from government on how Right to Buy receipts can be spent.

Councils have been allowed to spend 100 per cent of the income they receive on acquiring new properties.

This was previously capped at 50 per cent. The flexibility, which was introduced by the Labour government last summer, is currently due to end on March 31, 2026.

Cllr Frampton said: “In February 2025, the council approved a paper which sets out the plan for the second phase of spending the remaining Right to Buy receipts which totals around £13m.

“The council are in the process of identifying suitable investment opportunities for this outstanding budget in order to best meet the council’s priorities.”