1  Overview

1.1 Purpose 

1.1.1 Whilst VPG is no longer available for new sales, this chapter is for use by RSLs who previously operated the VPG scheme, who are still required to comply with these and any subsequent procedures.

 
1.2  Context 

1.2.1  The Voluntary Purchase Grant Scheme (VPG) was introduced in April 1996 and allowed Registered Social Landlords (RSLs) to dispose of their rented housing at a discount to their secure and assured tenants who occupied properties eligible for the scheme. VPG has been replaced in April 2006 by Social HomeBuy 
 
1.2.2  For full details of how the VPG scheme operated please refer to previous versions of this chapter. Proceeds from the sale of VPG properties, including Grant previously received or discount repaid must be paid into a Disposal Proceeds Fund to replace the rented housing sold. 
 
1.2.3  VPG was not funded by Social Housing Grant but by Purchase Grant (PG), paid under section 21 of the Housing Act 1996. SHG is paid under Section 18 of the Housing Act 1996. The arrangements for Purchase Grant Recovery differ from those for the recovery of SHG. 

In essence, SHG is Recovered and either repaid to the Agency or credited to the RCGF.

For properties funded by Purchase Grant, it is not just the Grant that is Recovered, repaid or recycled , but the entire net disposal proceeds.

1.3 Main Features of the Scheme

1.3.1  The VPG Scheme gave RSLs the opportunity to:

• sell its permanent rented housing stock to Secure or Assured Tenants at a discount;
• provide replacement rented housing by using the recycled net disposal proceeds from sales together with private finance.

1.3.2  Net Disposal Proceeds are credited to the RSL’s Disposal Proceeds Fund.  For details of how to calculate contributions to the DPF, permitted uses of the DPF and accounting and administration arrangements please see the DPF chapter