Our friends at Lib Dem HQ have prepared a briefing on the detail of the latest Conservative election announcement on the ‘right to buy’.
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|Friend –I thought you would be interested in a brief on the Conservative’s Right to Buy policy.Many thanks,
Conservative ‘Right to Buy’
Most people aspire to own their own home, and we believe in supporting people on the journey to home ownership. But policies that promote home ownership should not discriminate on the basis of previous housing tenure.
It is unfair for private tenants to get little or no support to buy a home while some social tenants are entitled to buy their home with a discount of as much as £100,000.
That’s why we will continue to support policies that help people to buy their own home – such as our proposals for Rent to Own homes that will help working people buy their first home for the same cost as renting.
Under our new ‘Rent to Own’ model each month’s rental payment steadily buys you a share in the home, which you’ll own outright after 30 years, just like with a normal mortgage.
Impact on housing stock
Policy Exchange original plans
Same old Tories….
“A Conservative Government will extend this right to tenants of housing associations. Our plans to boost shared ownership schemes, and give social housing tenants the right to own a share of their home, will also benefit first-time buyers.”
David Orr, Chief Exec, National Housing Federation
“As a Conservative minister recently said to me “getting a housing association tenancy in my constituency is like finding the golden ticket. The quality and price is so much better than anything in the private sector”…. [under the right to buy plan] all the private renters living in the minister’s constituency, and all the rest of us, would pay for some lucky tenants to be gifted homes that had been built and maintained for the benefit of the community.”
“If real new money is now to be found to fund RTB, that money could also be used to build new homes rather than changing who owns them.”
“Short term gimmicks designed to recreate the politics of the past are an expensive distraction.
Ruth Davison, Director of Policy and External Affairs at the National Housing Federation
“A very conservative estimate of this policy puts the cost to the tax payer of at least £5.8 billion.
“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 their taxes to gift as much as £100,000 to someone already living in a good quality home is deeply unfair.”
Gavin Smart, CIH interim chief executive, said replacing ‘Right to Buy’ homes was “vital for people on low incomes”.
“Right to Buy has helped millions of people become homeowners, but there are many more who remain in housing need,” he said. “It is crucial that every home sold is replaced.”
Financial Times ‘Councils struggle to replace sold-off homes’ 4th April 2015