Right to buy must be reformed, National Housing Federation say
One of two stories which helps explain another policy which exacerbates the problems around rural affordable housing. It tells us:
The government has been urged to reform right to buy and cut the discounts available to tenants to stem the loss of social housing.
The National Housing Federation, which represents affordable housing providers, said it wanted to see a fundamental review of the whole policy including the discounts available to buyers, the eligibility criteria and where the money from sales goes. Right to buy, which was launched in 1980 by Margaret Thatcher, allows some council and housing association tenants to buy their property, currently at a 70% discount worth up to £77,000, or £102,700 in London.
Since its launch, the scheme has led to more than 2m homes being sold off, which councils and housing associations have not been able to replace.
In 2012, the scheme was reinvigorated to increase the discounts available to tenants. The number of people using it since then has leaped – between April and June 2,845 council-owned properties were sold to tenants, while 675 new houses were started or acquired by councils using right-to-buy funds.
On Thursday, the House of Lords will debate the deregulation bill, which includes a plan to reduce the eligibility period of residents from five years to three.
With the average cost of building a new home exceeding £140,000, the National Housing Federation said it was concerned that heavy discounts and a shorter qualification period would leave a lasting legacy on the availability of affordable homes in the future.