Ever heard of the swap option? Well that’s exactly what Sutton Council proposed to do with their own Orlit Homes that were privately owned:
We therefore negotiated a deal with our partners delivering the redevelopment so that we could offer a house swap option. Private Orlit owners have the choice of swapping their current home for a new home on the redevelopment on a like for like basis in respect of the number of bedrooms. They will own these properties just as they do their Orlits, but these homes will be of a much better build quality and will be worth far more than their existing homes. Because of the higher market value there is a claw-back caveat which restricts the profit they can make if they decide to sell their new house within a few years of moving in. This is a similar caveat to that when someone purchases under right-to-buy, and with the same intention of preventing people using the deal as a way to make a quick profit rather than secure a permanent home. The new home will be given in place of paying the market value of their existing property.
The benefit of the swap option is that in recognition of the disruption and upset caused by the need to buy back their homes, the property owners will be able to stay in the same area and retain their community if they want to, as well as being in better houses of a higher value, that they will be able to sell in future should they wish to.