Right to Buy creates nearly 40,000 new homeowners

// HA News

The reinvigorated Right to Buy has created nearly 40,000 new homeowners in the last 3 years, according to new figures on the government website.

Ministers welcomed this as further evidence of how government-led efforts to support hard-working aspiring homeowners are working.

The figures also show that 3,644 new starts and acquisitions have been made since the Right to Buy was reinvigorated in 2012.

This means that the 3,054 additional homes sold in the first year of the scheme are already being replaced on a one-for-one basis nationally.

Housing Minister Brandon Lewis said “For years, the discounts available under the Right to Buy were left to dwindle, denying thousands of people the opportunity to own their own home.”

“This reinvigorated scheme has turned that around, and means nearly 40,000 people have been able to buy the home they love – many of whom might otherwise never have had the chance to become homeowners.”

“On top of that, it’s getting homes built, with councils replacing the additional homes sold on a one-for-one basis.”

Since the reinvigoration of the Right to Buy scheme, nearly £964 million in sales receipts are being re-invested into building new homes; levering a further £2.2 billion of investment over the next 3 years.

This means that in total, over £3.2 billion will be raised to invest in affordable house building as a result of the as a result of Right to Buy.

In the 3 months to June, 2,779 households bought their homes under Right to Buy.

Local authorities received approximately £223 million from Right to Buy sales, 5% higher than the £212 million in the same quarter of 2014 to 2015.

The new leader of the Labour party, Jeremy Corbyn has recently called for an extension of the right to buy to people who live in privately rented accommodation.

Corbyn explained the logic behind his controversial proposal, saying “We know that Generation Rent faces an uphill struggle simply to get into long-term housing. We have seen some good ideas from Labour to establish more secure tenancies for renters. Now we need to go further and think of new ways to get more people into secure housing.”

“So why not go with Right to Buy, with the same discounts as offered by way of subsidised mortgage rates, but for private tenants and funded by withdrawing the £14 billion tax allowances currently given to Buy to Let landlords?”

“I believe this idea could open up the possibility of real secure housing for many currently faced with insecurity and high rents.”

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