Conservatives’ Right to Buy promise is blasted by the industry

The industry has reacted with horror to the Conservatives’ manifesto pledge to extend Right to Buy to the social housing sector.

Altogether, some 1.3m housing association tenants would be able to purchase their homes after three years at a discount of 35%.

Jeremy Blackburn, RICS head of policy, said: “Extending the right-to-buy policy to housing associations and selling our remaining council housing stock is not a responsible approach to addressing the housing deficit.”

Adam Challis, head of residential research at property firm JLL, said: “The expansion of Right to Buy represents terrible policy.”

Other critics said the proposed policy was unfair on private tenants.

Ruth Davison, director of policy and external affairs at the National Housing Federation, said: “We fully support the aspiration of home ownership, but extending right-to-buy to housing associations is the wrong solution to our housing crisis.

“While extending Right to Buy will see some people being able to buy their own home with help from the taxpayer, these are people already living in good secure homes on some of the country’s cheapest rents.

“It won’t help the millions of people in private rented homes who are desperate to buy but have no hope of doing so, nor the three million adult children living with their parents because they can’t afford to rent or buy.

“To use public assets to gift over £100,000 to someone already living in a good-quality home is deeply unfair.”

Gavin Smart, deputy chief executive of the Chartered Institute of Housing, said: “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.

“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.

“The next government should be reviewing the way the policy currently works, not extending it.”

Jackson Stops & Staff said it welcomed the extension of Right to Buy, but only “provided that the funds realised are reinvested in the sector”.

Only Hunters estate agents – whose chairman Kevin Hollinrake is standing for a safe Conservative seat – appeared to have anything wholly positive to say about the extension of Right to Buy.

Glynis Frew, managing director, said: “We welcome Cameron’s pledge to extend the Right to Buy to housing associations.

“The fact that more people will be able to buy homes can only be positive as this will facilitate the movement at the lower end of the market and should then have a ripple effect throughout the rest of the market.

“Home ownership is an important part of British culture, with the majority of the population still striving towards owning their own property, so initiatives that promote this are hugely welcome.

“The fact that every house purchased will be replaced on a one-for-one basis is a massive plus too. This will provide more affordable homes whilst ensuring no-one is forced to leave their home.”

Right to Buy was scrapped in Scotland last year and is set to be abolished in Wales if Labour continues to hold the balance of power.

The Conservatives’ manifesto is here

 

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8 Comments

  1. Robert May

    It is very obvious from the contents of Eye this morning that everyone has an opinion on homes and housing, in the 3 weeks ahead of the election suddenly  everyone wants their turn on this popular soapbox. As far as I can see we are no further forward on the subject than we were in 2010.

    Well done to everyone  who managed to get their name into this particular story! To each one of you I would ask let’s have a detailed and cohesive run through of your individual proposals for solving the  housing and homing issues the country faces. I am sure Ros can find space for a detailed breakdown of your suggestions to an audience that is well placed to judge your suggestions.

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  2. Agent for Change

    With over 4,000,000 extra people in the UK since the year 2000 all these things will do little to help the housing crisis. If you have a flood you have to turn off the stop **** then you fix the burst pipe.

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  3. Gump

    Right to buy make my blood boil, I understand people need help with housing and am all for it, but for the love of God why gift them a potential £120,000 (based on a two bed flat in my area) in equity when they are back on their feet?

    This isa the government are offering private buyers is £3,000!!!!

    Its beyond a joke and insulting to anyone who is trying to get on the property ladder by good old fashioned saving up. In fact, it’s insulting full stop

     

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  4. 1stTimeBuyer

    I am completely disgusted by this.  Why the hell should I, a tax payer, and someone who is saving very hard to just get the on housing ladder, subsidise, so in effect put my hard earned money direct into someone else’s pocket.  They already have it easy in cheap rent.  I may as well just set-up a standing to them, this along side the one I have to give money for cigarettes, holidays and alcohol to those who refuse to work.  This just goes to prove the conservatives have no idea what fairness to the working individual is about.  I am currently an undecided voter, but they have just made my decision a lot easier, I certainly won’t vote be voting conservatives now.

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  5. wardy

    I wouldn’t worry to much. How many of the 1.3 tenants are going to be able to get the finance anyway?

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    1. NewsBoy

      Entirely right.  People seem to have forgotten why people are in social house – it’s because they can’t don’t have the means or the ability to move into the private sector and have little or no chance of getting a mortgage. I deal in this sector and cannot remember a single client in any of our accommodation who would have the remotest interest or wherewithal to buy. Apart from anything else the vast majority of our clients/tenants in this type of accommodation have no wish to have the responsibility of ownership.

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  6. NewsBoy

    People seem to have forgotten why people are in social housing – it’s because they can’t/don’t have the means or the ability to move into the private sector and have little or no chance of getting a mortgage. I deal in this sector and cannot remember a single client in any of our accommodation who would have the remotest interest or wherewithal to buy. Apart from anything else the vast majority of our clients/tenants in this type of accommodation have no wish to have the responsibility of ownership.

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  7. Jacqueline Emmerson

    The whole point of social housing is to house, on a long term basis, those who can’t afford to buy. When I grew up on a council estate that was most families. We were able to stay near our extended families as there was just enough housing available. Now a couple has to move away from our village when they start a family. Part of the stock was sold to tenants. As they died off private buyers came in. Some of the stock was knocked down with the usual promise of a rebuild that never happened. Result, a lot of lonely folk who don’t live near their adult kids and adult kids with the expense of  living in private rented accommodation. The latter fills a certain gap. Many tenants need a home for life. Three years guarantee, as Labour suggests isn’t much use to someone with small kids or someone retired. I might that my family benefited from buying their council houses. However, it is the generations coming behind them who now suffer.

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