Right to Buy

Rather than revive the policy that lost 40% of council homes to private rentals, Johnson should build more affordable housing, says Peabody housing ...

When the 2015 policy was announced, the then mayor of London, one Boris Johnson, said that extending right to buy to housing associations would be the “height of insanity” if it did not lead to the creation of more affordable homes in the capital. The clear evidence from the sale of council houses since Thatcher’s introduction of right to buy is that a high proportion of these properties do not stay owner occupied. If the Treasury is not providing any new money to fund the discounts that housing associations will be obliged to offer new right-to-buy tenants, this funding will presumably come at the expense of other much-needed housing schemes. The version of this policy pitched in the 2015 Conservative manifesto proposed to force local authorities to sell off their high value, typically larger and most-needed properties to pay for the discounts that housing associations would be required to offer tenants. The tenant of a council-owned flat in London who has been renting from their local authority for three years could be eligible for a discount of up to £116,000. Among the slew of “red meat” policies that are now being put forward to shore up Boris Johnson’s position, there is one that ought to cause real concern for those want to see fair and balanced housing in this country.

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Since Right to Buy was introduced in 1980, nearly half a million council and housing association homes have been sold to their tenants. Right to Buy was abolished in Scotland after a total of 494,580 council and housing association homes were sold between the years 1979-80 and 2014-15. “The end of Right to Buy marks a major milestone in the Scottish Government’s efforts to build a sustainable housing policy for the future,” said then-Housing Minister Kevin Stewart at the time.

Boris Johnson unveiled the plans in a major speech in Blackpool as he tries to get his scandal-hit premiership back on track.

It's time to turn benefits to bricks," he said. Visit facebook.com/dailymirror/live to watch. Every Thursday at 1pm they will take part in a Facebook Live event to answer your questions and offer their advice. "We are going to look to change the rules on welfare so that the 1.5 million working people who are in receipt of housing benefits - I stress working people - and who want to buy their first home will be given a new choice: to spend their benefit on rent, as now, or put it towards a first-ever mortgage." But Mr Johnson failed to commit to his own manifesto pledge to build 300,000 new homes a year by the mid 2020s, saying "I can’t give you a cast iron guarantee that we will get to a particular number in a particular year". People on housing benefit will be "given a new choice to put benefits towards a first ever mortgage" under the shake-up, Mr Johnson said in a speech in Blackpool.

The policy launched by Margaret Thatcher in the 1980s remains a core part of the Tory party's identity.

In other words, the best hope for opponents of the policy is that it will never happen in the first place. Gavin Smart, the chief executive of the Chartered Institute of Housing, says the scheme is “not the answer” and would “be at the expense of the poorest households”, arguing that the estimated £70,000 subsidy a household would be better spent on addressing the housing stock crisis. Others point to the fact that … not many people living in housing associations seem to want this right very much. Fewer than 5% of the homes sold off have been replaced, according to the charity Shelter, and the available stock has dropped from that 5.5m figure to 4.2m by 2020. Average property prices in Britain have gone from that 1980 figure of £23,500 to £278,436 as of March. Meanwhile, rents for the worse-off council tenants who remained rocketed – going up 55% relative to earnings in a decade.

The scheme could see hundreds of people getting on the property ladder, but it is not without its critics.

“Currently, soaring house prices, stringent mortgage lending restrictions and high deposit requirements are hampering the ambition of many young people who want to own their own home. Secretary of State for Work and Pensions Thérèse Coffey added: “For too many people the aspiration to own their home has been taken away. It’s time to turn benefits to bricks,” the Prime Minister added. However, the scheme is less generous for those in homes owned by housing associations. “The Government needs to stop wasting time on the failed policies of the past and start building more of the secure social homes this country actually needs.” “This will be the first comprehensive review of the mortgage market for a decade, seeking bold and innovative steps that government and industry can take to support more first-time buyers into home ownership.” It will increase each year in April in line with the consumer price index (CPI).” Poverty campaigner Jack Monroe said that in order for the scheme to be viable the Government would need to raise benefits and build “genuinely affordable safe, decent housing”. A “comprehensive review” of the mortgage market reporting back in the autumn was also pledged in order to extend low-deposit mortgages. “And we are also giving people the choice to use their benefit towards their mortgage rather than on rent that pays a buy-to-let landlord.” The Prime Minister has dubbed this “benefits to bricks” – changing welfare rules so that the 1.5million people who are in work but also on housing benefit will be given the choice to use their benefit towards a mortgage, rather than automatically going directly to private landlords and housing associations. He criticised some associations for showing “scandalous indifference” to tenants and pledged a “one-for-one” replacement of each property sold to prevent the housing stock dwindling in an attempt to address the major criticism of his Tory predecessor’s policy.

The Government is also launching an independent review of first-time buyers' access to mortgage finance.

"First-time buyers are trying to hit a continually moving target. "Over that time almost two million people have been helped into home ownership. READ MORE: What is the right to buy scheme as Boris Johnson plans extension? Boris Johnson extends Right to buy scheme to Housing Association tenants Boris Johnson has extended the Right to Buy housing scheme to millions of Housing Association tenants. Boris Johnson reveals housing association tenants to have access to Right to Buy scheme

Polly Neate, chief executive of housing charity Shelter, called the announcement 'baffling, unworkable and a dangerous gimmick'

As a result, it’s thought that £9bn is paid in housing benefit to private landlords. However, in recent years, the number of people buying their council homes has fallen. It’s also unclear what sort of discount will be available to housing association tenants. The evidence here is clear. Expanding Right to Buy could exacerbate the social housing deficit Following months of speculation, the Prime Minister has confirmed his plan to extend Right to Buy to housing association tenants.

A selection of property industry figures have spoken out against the government's latest proposals to extend Right To Buy to housing associations.

“It is laughable to think that the housing associations will meet the target of replacing 1 for 1 within three years using money raised from the sale plus the Treasury’s funding of the discount. It's also not so good for the 4.4m renters in the private sector who do not have the same opportunity. Paula Higgins, chief executive of consumer group HomeOwners Alliance, comments: “Right To Buy is not so good for the swathes of people in need of social housing now and in the future as the scheme will erode the number of affordable homes for rent.

There are fears extending the right to buy to housing association tenants could further reduce the available social housing stock, as ITV News Political ...

“And, while it’s not going to be quick or easy, you can be confident that things will get better, that we will emerge from this a strong country with a healthy economy.” He added: “Over the next few weeks, the government will be setting out reforms to help people cut costs in every area of household expenditure, from food to energy to childcare to transport and housing.” And he promised “to cut the costs that government imposes on businesses and people up and down the country” despite his prior tax hikes. After that pledge failed to materialise, Mr Johnson committed to consider new pilots for the scheme ahead of the 2019 general election. Information from Downing Street ahead of Thursday's speech gave little detail on how the proposal will actually work, but the PA news agency has been told Mr Johnson will confirm his intention to give tenants of housing association properties the right to buy their homes. The prime minister also committed to detail “reforms to help people cut costs in every area of household expenditure” over the coming weeks as he seeks to ease the impact of soaring prices. "There is a debate in government on what the priority is. The prime minister used a major speech in Lancashire on Thursday to announce new measures to potentially help millions onto the property ladder.

Boris Johnson has confirmed plans to extend the right to buy scheme to tenants of housing association homes. In an address yesterday Johnson said there are ...

In addition, welfare rules are set to change, giving 1.5 million people in receipt of housing benefit the option to use their benefit towards a mortgage. If a review of the mortgage market could help with the challenge of needing such a big deposit then it would be greatly welcomed by those who are able to demonstrate that they can afford monthly payments, but who are currently locked out of home-ownership. Although competition among buyers is now starting to ease, we’re still in a market where demand is massively outstripping supply in many areas of the UK. This has already pushed prices to record highs so the challenge for first-time buyers of raising a deposit is not going to get easier. It’s clear to see why there are many renters keen to get on the ladder, as they’re forking out 40% more each month than ten years ago, while low interest rates means average mortgage payments have only increased by 11% over that same time. The Government’s record of delivering new homes is woeful at best and social housing has long been an area of serious neglect. “Yes, we have got to help people get deposits, but we need to have many more 95% mortgages … it is punitively difficult for so many people now in this country, it doesn’t need to be that way, that’s one of the reasons we are reforming it,” said the Prime Minister.

The body representing housing associations across England was not consulted on the government's plans to extend the Right to Buy to their members. Linked In ...

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Property experts are questioning whether the Government's new right to buy plan will work for families living in even the cheapest areas across London.

Asked if Londoners would be priced out from taking advantage of the new housing scheme, No 10 said: “It will vary per area. But Lucian Cook, head of residential research at Savills, questioned whether the scheme would work for families living in even the cheapest boroughs in the capital. That means it would take much longer to raise a five per cent deposit and households would have much less disposable income each month after buying.”

Many housing association tenants will welcome the chance to own their own home and private renters may welcome official recognition that they are stuck paying ...

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This week (9 June 2022), Boris Johnson announced an extension to the Right to Buy Scheme, but what does this mean for the current UK housing crisis? PBC Today ...

However, due to the lack of funding towards the 1980s Right to Buy Scheme, there is limited social housing to place people in, forcing more people into the private rental sector. “Reactionary, short-term thinking has led the government to draw on Thatcherite policies in an attempt to emulate electoral successes of the past. Currently, less than 5% of homes sold off through the Right to Buy scheme have been replaced. Established in the 1980s by ex-conservative prime minister Margaret Thatcher, the Right To Buy Scheme has been hailed as a ‘core part’ of the conservative party’s identity. Before the extension, tenants living in council homes are eligible to buy their properties at a discounted price – up to 70% off the market value depending on how long they have lived there. Housing associations currently rent affordable housing to around 2.5 million people across the country.