Ministers in Scotland have come under mounting pressure to scrap the proposed extension of the Right to Buy after a council blamed it for the collapse of a £7.2m development programme
East Ayrshire council accused communities minister Wendy Alexander for scuppering the 500-home new build project, describing her decision as "the last straw".

They said it could no longer guarantee that building the homes would be public money well spent, in case they were snapped up by tenants under an extended Right to Buy.

News of the development's demise marks a major embarrassment for Alexander. It was part of the Scottish Executive's flagship New Housing Partnerships investment strategy.

There is growing concern among all housing providers north of the border that extending the Right to Buy will devastate the sector's stock (Housing Today, 9 December 1999).

The decision to not complete the contracts for the new build project, which was to include 300 homes for rent, was taken at a special ad hoc meeting of the housing committee.

More than £1.2m of New Housing Partnerships funding had already been spent clearing several sites for development. A £6m grant to the partnership for the development will be retained by the government.

Housing chair Jimmy Kelly, also a partnership director, said: "To say we are disappointed is an understatement."

Months of complex negotiations had already proved awkward, he claimed, as the executive refused to allow the authority to keep securities over the land it was giving to the housing partnership.

He added: "The Scottish Executive's intention to extend the Right to Buy legislation is the last straw. We are in an impossible position and cannot continue as we planned.

"At the end of the day, the council has an obligation to make sure that public money is properly spent and gives value to the people of East Ayrshire. That will not happen if the new homes that we invest heavily in are quickly sold off."

It is understood the decision is will not affect the partnership's remaining plans to purchase 1,000 Scottish Homes properties in and around Kilmarnock.

In a statement, the partnership's board said it was "deeply disappointed" with the council's decision. While sympathising with the position as represented by the council, the directors had hoped that the outstanding issues could have been resolved through a joint meeting with the council and the Scottish Executive," it added.

Source

Housing Today