The reported bankruptcies of two of the top American automakers has certainly affected Motor City’s unemployment rate significantly.
According to the April U.S. Bureau of Labor Statistics figures, of the 49 metropolitan areas with a population of one million or more, the Detroit-Warren-Livonia MSA reported the highest unemployment rate at 13.6 percent. The MSA reported a 6.6 percent in over-the-year unemployment rate increase. Furthermore, in the same month, the two metropolitan divisions that comprise this area registered the highest jobless rates: Detroit-Livonia-Dearborn at 14.6 percent and Warren-Troy-Farmington Hills at 12.8 percent.
Dillon notes that the only new construction in the metro may be a condominium that is taking a rental exit strategy.
Because of this, it would come as no surprise to discover that Detroit’s apartment market is also suffering.
However, all things considered, the market is “faring pretty well,” according to Kevin Dillon, associate partner in Hendricks & Partners’ Birmingham, Mich. office. Perhaps the best explanation is the limited new construction—only five multifamily permits have been issued this year, compared with 435 permits issued in 2008.
The shadow market has not had a significant impact on occupancy rates, though vacancy has increased 100 basis points, to 7.4 percent, year-over-year from the first quarter of 2008 to the first quarter of 2009.
Furthermore, Dillon notes, the shadow market is limiting rent increases—rents slipped 0.6 percent year-over-year, to $832 per month, ending March 2009.
Among those developments suffering from high vacancies, Dillon tells MHN that Class A properties are generally the properties with the lowest occupancy, while B+ through C level properties have the strongest occupancies. “Residents are more comfortable with lower rent payments and they don’t believe they can get into A properties,” he notes.
Residents that tend to rent in Class A communities in good times are more likely to have experienced job losses this year, he explains.
Consequently, most of the market’s concessions are seen in Class A properties, where residents are being offered one to one-and-a-half month of free rent.
Transaction-wise, velocity is down approximately 85 percent as a result of a lack of lending sources, and cap rates have increased 150 to 250 basis points in the past 12 to 18 months. Unlike many other major markets, Dillon notes that the gap between buyer and seller expectations has closed. “Now it’s a matter of having good product available for sale. We don’t have as much for sale as we used to.”
So what will turn Detroit’s apartment market around? “If the country starts purchasing automobiles again and sales increase substantially, that will secure employment opportunities,” says Dillon. “That could be an outstanding benefit to the multifamily market, allowing people to maintain their own apartments and not have to move out of the area for employment.”
Wednesday, June 3, 2009
Franklin Housing Authority Selects Michaels Development to Revitalize Its Public Housing Inventory
The Franklin Housing Authority (FHA) has selected The Michaels Development Co. from among eight others to assist in the potential redevelopment of its public housing inventory of about 297 units across 60 acres of land.
“We want to find a way to make better use of land and create more affordable and workforce housing as well as homeownership housing,” Derwin Jackson, FHA executive director, tells MHN. “While there is no timeline yet, I would like to see it completed within the next five years.”
The Michaels Development Co. will be working with the FHA to come up with a master plan that will include rehabilitation of existing units as well as construction of new units.
“It was a very tough decision to choose from all the great proposals we had, but ultimately it came down to who had the most expertise and innovative ideas. In addition, Michaels is also bringing some funding and the company has some local partners,” says Jackson.
The FHA is seeking to implement a comprehensive, multi-phased strategy for the redevelopment of its property in Franklin. This would include the construction of 308 new units to replace its current 297 dwelling units through public and private resources. In addition to vastly improving the standard of living for residents, this redevelopment will increase the availability of raw land owned by FHA that can be used for the development of additional low- and moderate-income housing.
“The majority of our housing units were constructed in the 1950s and 1960s and do not have the conveniences of modern residential structures. This endeavor will not only allow us to improve living conditions but also free up land so that we can build transitional affordable housing not currently available in Franklin,” added Jackson.
The Michaels Development Company has developed more than 35,000 housing units since 1973. The company specializes in the development of mixed-use, mixed-income and mixed-finance communities and has completed successful HOPE VI communities in 13 cities.
“Our firm worked with Derwin Jackson on a similar project in Meridian, Miss., and we were excited to have the opportunity to replicate our success in Franklin,” says Ava Goldman, senior vice president of The Michaels Development Co. “This project became even more appealing as we learned more about the history and community of Franklin. We are confident that working with the Franklin Housing Authority, we can dramatically improve the public and affordable housing options here.”
“We want to find a way to make better use of land and create more affordable and workforce housing as well as homeownership housing,” Derwin Jackson, FHA executive director, tells MHN. “While there is no timeline yet, I would like to see it completed within the next five years.”
The Michaels Development Co. will be working with the FHA to come up with a master plan that will include rehabilitation of existing units as well as construction of new units.
“It was a very tough decision to choose from all the great proposals we had, but ultimately it came down to who had the most expertise and innovative ideas. In addition, Michaels is also bringing some funding and the company has some local partners,” says Jackson.
The FHA is seeking to implement a comprehensive, multi-phased strategy for the redevelopment of its property in Franklin. This would include the construction of 308 new units to replace its current 297 dwelling units through public and private resources. In addition to vastly improving the standard of living for residents, this redevelopment will increase the availability of raw land owned by FHA that can be used for the development of additional low- and moderate-income housing.
“The majority of our housing units were constructed in the 1950s and 1960s and do not have the conveniences of modern residential structures. This endeavor will not only allow us to improve living conditions but also free up land so that we can build transitional affordable housing not currently available in Franklin,” added Jackson.
The Michaels Development Company has developed more than 35,000 housing units since 1973. The company specializes in the development of mixed-use, mixed-income and mixed-finance communities and has completed successful HOPE VI communities in 13 cities.
“Our firm worked with Derwin Jackson on a similar project in Meridian, Miss., and we were excited to have the opportunity to replicate our success in Franklin,” says Ava Goldman, senior vice president of The Michaels Development Co. “This project became even more appealing as we learned more about the history and community of Franklin. We are confident that working with the Franklin Housing Authority, we can dramatically improve the public and affordable housing options here.”
As Rent-Stabilized Properties Encounter Difficulties, NYC Firm Forms Division to Provide Third-Party Services
Kaled Management Corp. announced it has formed a division to provide third-party asset and property management services to owners of rent-regulated apartment properties in New York City.
The division, Kaled Residential Asset Management, will be spearheaded by Jordan Platt, the company’s vice president of Operations.
“We are uniquely qualified to take over the management of stabilized apartment buildings on behalf of lenders and institutions that are now holding the keys to assets that are among the most complicated and challenging to run profitably and well,” said Edward Kalikow, president of Kaled Management.
During the financing-fueled commercial real estate bull-run of the mid- to late-2000s, many investors purchased large portfolios of rent-stabilized properties in New York City at high prices and aggressive future income projections. Many of these properties are now facing difficulties in covering their debt costs.
Stuyvesant Town and Peter Cooper Village was reportedly the largest portfolio purchased, by Tishman Speyer in 2006 for a record $5.4 billion. By Sept. 2008, The New York Times reported, the company had spent $224.4 million out of its $400 million interest reserve fund.
Kalikow tells MHN there are at least 20,000 units of stabilized housing in various stages of foreclosure in New York City.
Kalikow said his fourth generation family firm has more than 30 years experience in “this very particular niche of ownership and management – despite onerous rent laws, aging structures and equipment, and complex tenant relations.”
“It is a tightrope walk that requires vigilance, knowledge of bricks-and-mortar as well as rules and regulations, and a hands-on approach to maintain the highest possible occupancy rates,” said Kalikow.
Kaled Residential Asset Management said it will serve owners of individual apartment buildings and portfolios of rent-stabilized housing to “insure the successful maintenance of the property and enhance each asset for long-term ownership or disposition.” The division offers accounting and back-office operational services, as well as on-site property management, and asset maintenance, including the planning and execution of capital improvements.
“We bring an owner’s perspective to property management,” said Kaled Residential Asset Management’s Platt. “This means that we keep a keen focus on the bottom line as well as maintain the property at the highest level to enhance its value year after year.”
Rent stabilization was created in 1969. The city Rent Guidelines Board sets the rents and the rent increases. About 300,000 units have been removed from rent stabilization since 1993 when lawmakers changed some of the laws. Many of the most aggressive purchases made in the 2000s by investors were based on the assumption that they could convert more of the units to market-rate, a strategy that has not been as successful as projected.
“There have been a number of opportunistic investors that viewed rent-stabilized housing as a treasure trove opportunity, with overly aggressive plans to destabilize the units into market-rate rentals,” said Platt. “But we view these assets as serving an important purpose—providing work force housing to New Yorkers—and also provide an evergreen, conservative income when managed by people who know what they’re doing, and how to work well with their tenants and within the confines of the complex stabilization regulations.”
The division, Kaled Residential Asset Management, will be spearheaded by Jordan Platt, the company’s vice president of Operations.
“We are uniquely qualified to take over the management of stabilized apartment buildings on behalf of lenders and institutions that are now holding the keys to assets that are among the most complicated and challenging to run profitably and well,” said Edward Kalikow, president of Kaled Management.
During the financing-fueled commercial real estate bull-run of the mid- to late-2000s, many investors purchased large portfolios of rent-stabilized properties in New York City at high prices and aggressive future income projections. Many of these properties are now facing difficulties in covering their debt costs.
Stuyvesant Town and Peter Cooper Village was reportedly the largest portfolio purchased, by Tishman Speyer in 2006 for a record $5.4 billion. By Sept. 2008, The New York Times reported, the company had spent $224.4 million out of its $400 million interest reserve fund.
Kalikow tells MHN there are at least 20,000 units of stabilized housing in various stages of foreclosure in New York City.
Kalikow said his fourth generation family firm has more than 30 years experience in “this very particular niche of ownership and management – despite onerous rent laws, aging structures and equipment, and complex tenant relations.”
“It is a tightrope walk that requires vigilance, knowledge of bricks-and-mortar as well as rules and regulations, and a hands-on approach to maintain the highest possible occupancy rates,” said Kalikow.
Kaled Residential Asset Management said it will serve owners of individual apartment buildings and portfolios of rent-stabilized housing to “insure the successful maintenance of the property and enhance each asset for long-term ownership or disposition.” The division offers accounting and back-office operational services, as well as on-site property management, and asset maintenance, including the planning and execution of capital improvements.
“We bring an owner’s perspective to property management,” said Kaled Residential Asset Management’s Platt. “This means that we keep a keen focus on the bottom line as well as maintain the property at the highest level to enhance its value year after year.”
Rent stabilization was created in 1969. The city Rent Guidelines Board sets the rents and the rent increases. About 300,000 units have been removed from rent stabilization since 1993 when lawmakers changed some of the laws. Many of the most aggressive purchases made in the 2000s by investors were based on the assumption that they could convert more of the units to market-rate, a strategy that has not been as successful as projected.
“There have been a number of opportunistic investors that viewed rent-stabilized housing as a treasure trove opportunity, with overly aggressive plans to destabilize the units into market-rate rentals,” said Platt. “But we view these assets as serving an important purpose—providing work force housing to New Yorkers—and also provide an evergreen, conservative income when managed by people who know what they’re doing, and how to work well with their tenants and within the confines of the complex stabilization regulations.”
PropertyBridge Announces Winners of Contest Held to Promote Online Rental Payments
Oakland, Calif.--PropertyBridge Inc., provider of electronic payment services to the residential real estate management industry, has announced the results of its 2009 Community Contest, a marketing promotion for community managers that was held from February to April 30, 2009. As part of the promotion, each PropertyBridge client’s (management company) respective apartment communities competed with each other.
Nearly 1,000 properties across the nation were part of the contest.
The contest aimed to increase PropertyBridge transactions by awarding cash prizes to managers of communities with the largest increase in transactions over the previous month. Participating clients saw electronic transactions at their properties increase by an average of 31 percent. The winning properties, those with the largest increase in electronic payments over the entire contest period, saw their transaction increase by an average of 97 percent.
“We are extremely pleased with the boost in electronic payment adoption rates as a result of the Community Contest,” says Trevor Bert, controller for 155 properties managed by Dallas-based Westdale Asset Management. “A 47 percent increase in transactions at top performing properties is evidence that our communities were very motivated by the contest and worked hard to promote paying rent with PropertyBridge,” he adds.
Jessie Sordahl, business manager at Broadstone Ancala Apartments in Scottsdale, Ariz., says that the contest provided an additional incentive to promote the convenience of paying rent with PropertyBridge. “We reminded everyone who brought a rent check to our office that they could save time by paying with a credit or debit card online. Fewer checks in the leasing office gives us more time to focus on other important tasks,” he says. Broadstone Ancala won the top prize for Alliance Residential Co., boasting a 61 percent increase in electronic transactions during the promotion period.
Three monthly cash prizes and one $500 top prize were awarded to each participating management company.
Nearly 1,000 properties across the nation were part of the contest.
The contest aimed to increase PropertyBridge transactions by awarding cash prizes to managers of communities with the largest increase in transactions over the previous month. Participating clients saw electronic transactions at their properties increase by an average of 31 percent. The winning properties, those with the largest increase in electronic payments over the entire contest period, saw their transaction increase by an average of 97 percent.
“We are extremely pleased with the boost in electronic payment adoption rates as a result of the Community Contest,” says Trevor Bert, controller for 155 properties managed by Dallas-based Westdale Asset Management. “A 47 percent increase in transactions at top performing properties is evidence that our communities were very motivated by the contest and worked hard to promote paying rent with PropertyBridge,” he adds.
Jessie Sordahl, business manager at Broadstone Ancala Apartments in Scottsdale, Ariz., says that the contest provided an additional incentive to promote the convenience of paying rent with PropertyBridge. “We reminded everyone who brought a rent check to our office that they could save time by paying with a credit or debit card online. Fewer checks in the leasing office gives us more time to focus on other important tasks,” he says. Broadstone Ancala won the top prize for Alliance Residential Co., boasting a 61 percent increase in electronic transactions during the promotion period.
Three monthly cash prizes and one $500 top prize were awarded to each participating management company.
Economic Update - Pending Home Sales Reach for Unexpected Highs
The National Association of Realtors said Tuesday that its index of signed sales contracts, which is regarded as a harbinger of home sales in the very near future, spiked upward 6.7 percent nationally in April to 90.3. That much of a rise hadn't been expected by analysts, and represented the quickest upward movement of the index since late 2001.
A mixture of factors seemed to be driving buyers. Prices are down, first-time buyers have that $8,000 tax credit to spur them on, and until last week at least, mortgage rates were remarkably low. Regionally, the Northeast saw an enormous increase in pending sales--some 33 percent--while the Midwest experienced a 9.8 percent rise. Pending sales elsewhere were more-or-less flat.
Pending home sales have been going up for several months now, but it doesn't mean that the market is headed for the stratosphere (which would be another boom, and who wants that?). Unemployment and its doleful companion, foreclosure, haven't stopped increasing just yet, and mortgage rates promise to be an unwelcome wild card in the housing picture.
Red Bank, N.J.-based Hovnanian Enterprises Inc. has reported a second-quarter 2009 loss that was less than a year ago, which counts as good news in the homebuilding industry. Its loss for the quarter, which ended April 30, was $118 million, or $1.50 a share, compared with $340.7 million, or $5.29 a share, during the same quarter last year.
Horsham, Pa.-based luxury homebuilder Toll Brothers Inc. will announce its second-quarter numbers on Wednesday, and it too is expected to offer up some good news, homebuilder-style. That is, a narrower loss than last year.
Only a day after GM's historic bankruptcy announcement, the beleaguered giant said that it found a taker for its Hummer division, which has been part of the company for 10 years. Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., privately owned and based in China, will buy the brand.
CNNMoney reported that the CEO of Sichuan Tengzhong, Yang Yi, said that the deal "will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S." Perhaps the company has some industrial miracle up its sleeve, since it would take that to make a Hummer "fuel-efficient."
Bulls still seemed to be in charge on Wall Street on Tuesday, though only a little. The Dow Jones Industrial Average closed up 19.43 points, or 0.22 percent. The S&P 500 was up 0.2 percent and the Nasdaq edged up 0.44 percent.
A mixture of factors seemed to be driving buyers. Prices are down, first-time buyers have that $8,000 tax credit to spur them on, and until last week at least, mortgage rates were remarkably low. Regionally, the Northeast saw an enormous increase in pending sales--some 33 percent--while the Midwest experienced a 9.8 percent rise. Pending sales elsewhere were more-or-less flat.
Pending home sales have been going up for several months now, but it doesn't mean that the market is headed for the stratosphere (which would be another boom, and who wants that?). Unemployment and its doleful companion, foreclosure, haven't stopped increasing just yet, and mortgage rates promise to be an unwelcome wild card in the housing picture.
Red Bank, N.J.-based Hovnanian Enterprises Inc. has reported a second-quarter 2009 loss that was less than a year ago, which counts as good news in the homebuilding industry. Its loss for the quarter, which ended April 30, was $118 million, or $1.50 a share, compared with $340.7 million, or $5.29 a share, during the same quarter last year.
Horsham, Pa.-based luxury homebuilder Toll Brothers Inc. will announce its second-quarter numbers on Wednesday, and it too is expected to offer up some good news, homebuilder-style. That is, a narrower loss than last year.
Only a day after GM's historic bankruptcy announcement, the beleaguered giant said that it found a taker for its Hummer division, which has been part of the company for 10 years. Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., privately owned and based in China, will buy the brand.
CNNMoney reported that the CEO of Sichuan Tengzhong, Yang Yi, said that the deal "will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S." Perhaps the company has some industrial miracle up its sleeve, since it would take that to make a Hummer "fuel-efficient."
Bulls still seemed to be in charge on Wall Street on Tuesday, though only a little. The Dow Jones Industrial Average closed up 19.43 points, or 0.22 percent. The S&P 500 was up 0.2 percent and the Nasdaq edged up 0.44 percent.
Repairs firm Mears reports strong demand for services
Social housing repairs and maintenance company Mears has said it continues to perform strongly, ahead of its annual general meeting today.
The firm said the positive trends reported in an interim management statement on 28 April are continuing, and it has ‘excellent visibility in the order book for the current year and next’.
Since releasing its preliminary year end results in March, the company has won £100 million of new contracts. The statement issued in April said demand for its services has ‘never been stronger’.
It also said the integration of its 3C asset management subsidiary, which it bought in January, is progressing well and the division should make a profit in the second half of the year.
The firm said the positive trends reported in an interim management statement on 28 April are continuing, and it has ‘excellent visibility in the order book for the current year and next’.
Since releasing its preliminary year end results in March, the company has won £100 million of new contracts. The statement issued in April said demand for its services has ‘never been stronger’.
It also said the integration of its 3C asset management subsidiary, which it bought in January, is progressing well and the division should make a profit in the second half of the year.
Communities secretary Blears quits cabinet
The minister in charge of the Communities and Local Government department has announced she is resigning from the cabinet.
Hazel Blears said she wants to return to ‘grassroots’ politics, and would be ‘redoubling’ her efforts to speak for the people of her Salford constituency.
Ms Blear has been communities secretary since June 2007. She had recently been embroiled in the expenses row, and repaid £13,000 after it was disclosed that she had claimed second home allowances on three properties in a year.
She also wrote a newspaper article that was perceived as critical of prime minister Gordon Brown’s attempts to reach out to the public through video website Youtube.
In the wake of the expenses revelations, Mr Brown said her behaviour had been ‘totally unacceptable’, and her cabinet position was already in doubt ahead of a ministerial reshuffle expected after local and European elections being held tomorrow.
In her resignation statement Ms Blears said: ‘My politics has always been rooted in the belief that ordinary people are capable of extraordinary things, given the right support and encouragement.
‘The role of a progressive government should be to pass power to the people. I’ve never sought high office for the sake of it, or for what I can gain, but for what I can achieve for the people I represent and serve.’
Mr Brown said he understood Ms Blears’ decision, and that she had made an ‘outstanding contribution to public life’.
Hazel Blears said she wants to return to ‘grassroots’ politics, and would be ‘redoubling’ her efforts to speak for the people of her Salford constituency.
Ms Blear has been communities secretary since June 2007. She had recently been embroiled in the expenses row, and repaid £13,000 after it was disclosed that she had claimed second home allowances on three properties in a year.
She also wrote a newspaper article that was perceived as critical of prime minister Gordon Brown’s attempts to reach out to the public through video website Youtube.
In the wake of the expenses revelations, Mr Brown said her behaviour had been ‘totally unacceptable’, and her cabinet position was already in doubt ahead of a ministerial reshuffle expected after local and European elections being held tomorrow.
In her resignation statement Ms Blears said: ‘My politics has always been rooted in the belief that ordinary people are capable of extraordinary things, given the right support and encouragement.
‘The role of a progressive government should be to pass power to the people. I’ve never sought high office for the sake of it, or for what I can gain, but for what I can achieve for the people I represent and serve.’
Mr Brown said he understood Ms Blears’ decision, and that she had made an ‘outstanding contribution to public life’.
Northern Irish associations get new regulator
Housing associations in Northern Ireland will have an extra regulator after the creation of a new Charities Commission for the region.
All of Northern Ireland’s 40 housing associations have charitable status and will come under the control of the new regulator immediately, the Department for Social Development said.
Associations are already regulated by the DSD, but many will need to adjust their annual reports to better illustrate the public benefit they provide in line with charity legislation, said Seamus Murray, head of the charities implementation team.
But he added that the change will not create much extra work as associations already produce annual reports and accounts for public view which can be copied to the new commission.
‘There is a principle regulator in place, what needs to be done is to make sure they meet the requirements of the charities legislation as well. That should not be a big ask for housing associations,’ he said.
Chris Williamson, chief executive of the Northern Ireland Federation of Housing Associations, said the DSD had pledged not to duplicate regulation and he hoped this would work in practice.
‘Anything within reason that increases public confidence in the workings of charities has to be welcomed,’ he said.
The new non-departmental public body to regulate all Northern Ireland charities was launched this week after it established under the Charities Act (NI) 2008.
All of Northern Ireland’s 40 housing associations have charitable status and will come under the control of the new regulator immediately, the Department for Social Development said.
Associations are already regulated by the DSD, but many will need to adjust their annual reports to better illustrate the public benefit they provide in line with charity legislation, said Seamus Murray, head of the charities implementation team.
But he added that the change will not create much extra work as associations already produce annual reports and accounts for public view which can be copied to the new commission.
‘There is a principle regulator in place, what needs to be done is to make sure they meet the requirements of the charities legislation as well. That should not be a big ask for housing associations,’ he said.
Chris Williamson, chief executive of the Northern Ireland Federation of Housing Associations, said the DSD had pledged not to duplicate regulation and he hoped this would work in practice.
‘Anything within reason that increases public confidence in the workings of charities has to be welcomed,’ he said.
The new non-departmental public body to regulate all Northern Ireland charities was launched this week after it established under the Charities Act (NI) 2008.
Right to buy scheme discounts halve in ten years
Discounts available under the right to buy scheme have halved in the last decade, government figures have revealed.
Across England the average discount on a local authority owned home has fallen from 27 per cent in 1997/98 to 11 per cent in 2007/08, when looking at the right to buy discount as a percentage of overall house prices.
The drop is most marked in London, where the discount has fallen from 29 per cent in 1997/98 to just 6 per cent in 2007/08.
Looking at the discount as a percentage of prices for right-to-buy homes gives a similar picture, in terms of the level of decline. Using these figures the average discount has fallen from 49 per cent in 1997/98 to 24 per cent in 2007/08. In London the discount drops from 53 per cent to 13 per cent over the decade.
The figures were released in Parliament by junior housing minister Iain Wright, in response to a question from shadow housing minister Grant Shapps.
Mr Wright said the figures are based on the value of the property, not the amount paid after the discount, and only apply to local authority owned homes.
‘Around 80 per cent of RTB sales in 2007/08 were local authority properties, while 20 per cent are properties owned by registered social landlords,’ he said.
Earlier this year Inside Housing revealed that local authorities are facing a huge drop in receipts from right to buy sales in 2008/09. A snapshot survey of 10 councils found right to buy sales had fallen by 89 per cent in a year, with some authorities failing to sell any properties.
Across England the average discount on a local authority owned home has fallen from 27 per cent in 1997/98 to 11 per cent in 2007/08, when looking at the right to buy discount as a percentage of overall house prices.
The drop is most marked in London, where the discount has fallen from 29 per cent in 1997/98 to just 6 per cent in 2007/08.
Looking at the discount as a percentage of prices for right-to-buy homes gives a similar picture, in terms of the level of decline. Using these figures the average discount has fallen from 49 per cent in 1997/98 to 24 per cent in 2007/08. In London the discount drops from 53 per cent to 13 per cent over the decade.
The figures were released in Parliament by junior housing minister Iain Wright, in response to a question from shadow housing minister Grant Shapps.
Mr Wright said the figures are based on the value of the property, not the amount paid after the discount, and only apply to local authority owned homes.
‘Around 80 per cent of RTB sales in 2007/08 were local authority properties, while 20 per cent are properties owned by registered social landlords,’ he said.
Earlier this year Inside Housing revealed that local authorities are facing a huge drop in receipts from right to buy sales in 2008/09. A snapshot survey of 10 councils found right to buy sales had fallen by 89 per cent in a year, with some authorities failing to sell any properties.
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