The Conservatives are proposing an extension of the right-to-buy scheme encompass those living in housing associations, offering discounts worth up to £77,000 in England (£102,700 in London.) The proposal will not apply in Scotland or Wales, due to the right-to-buy being abolished.
Tory’s claim that by extending right-to-buy plans to housing association tenants, millions of people across the country would finally be able to buy their homes. The current rules allow most tenants living in council owned properties to buy their homes at a discounted rate. However, these rules do not currently apply to private, non-profit organisations such as housing associations.
What is the housing industry saying?
Deputy Chief Executive of the Chartered Institute of Housing, Gavin Smart has commented on the proposal, saying “extending right to buy to housing associations is not going to tackle the housing crisis – in fact it could make things worse for people on lower incomes who are already struggling to access a decent home at a price they can afford.”
“Individual tenants might benefit from the opportunity to own a home, but we would be very concerned that it would result in a dramatic loss of vital social and affordable housing. The Conservatives say that forcing councils to sell off their most valuable properties would fund this extension plus 400,000 new homes over five years – we fear the figures simply won’t stack up. And it could have a huge impact on councils’ ability to build new homes, particularly in more expensive areas like London and the south east, where it might actually make more sense for them to borrow against the value of these properties so they can fund more homes.”
“The Conservatives say each home sold under the extended right to buy would be replaced on a one-for-one basis – but we know this is not happening under the current scheme. Our research has shown that most authorities only expect to be able to replace half or fewer of the homes they sell under right to buy. And government figures show that between April 2012 and last September councils started or acquired 2,298 homes using right to buy receipts – just one for every 11 sold.”
“Right to buy has already had a huge impact on the supply of genuinely affordable homes, which is being cut at a time when more and more people are in need. The next government should be reviewing the way the policy currently works, not extending it.”