Boris Johnson is reportedly considering a return of Margaret Thatcher’s “right to buy” policy of the 1980s. Such a move would give people the chance to buy the property they rent from housing associations for a discounted price of up to 70%.
According to The Telegraph, Johnson is “very excited” about the potential revival of the policy which would help “generation rent” by giving around 2.5 million people given the chance to become homeowners.
Similar plans were floated by David Cameron’s government in 2015 as part of the Conservative election manifesto. Lisa Nandy, Labour’s shadow communities secretary, has accused the “desperate” government of simply repackaging Cameron’s plans.
Some experts are warning that the policy is simply a sell-off of affordable homes as opposed to a concrete policy of increased house building. David Alexander, chief executive officer of property firm DJ Alexander Scotland, has said that right to buy was a vote winner when introduced by Margaret Thatcher but the policy does nothing to address long-standing issues within the housing market and simply delays a proper review of the housing sector. Alexander said:
“While this policy will be a vote winner for Boris Johnson in key regions, the implementation of this plan does not address the need for substantially more housing as a whole. If it is introduced in the same way that it was in the 1980s, then the key issues which have dominated the housing market for the last two decades will simply be exacerbated by the move.
It was the sale of council housing in the 1980s that led directly to the substantial growth of the private rented sector. The sale of social housing only exacerbated the need for more housing as demand continued to exceed supply. This policy will only work if the funds gained from social housing sales are reinvested in more social housing rather than simply absorbed into other Government spending.
But there is little doubt that Boris Johnson has touched a nerve with this idea. Home ownership undoubtedly scratches an itch, a desire among the electorate to be homeowners and the discount to make it more affordable to a wider population.
The result will only be positive if it is matched by an increase in the size of the housing market to match growing need. Anything else will simply shift the demand to another time and another part of the market.”
The government is also reportedly considering removing the need for developers to build a set number of affordable homes in favour of having them contribute to an infrastructure fund that councils can then utilise to fund their own projects. There are also contemplations over allowing banks to consider taxpayer money received by claimants of housing benefit when they seek a mortgage.
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One Response
This is a brilliant idea, where I live it’s all become holiday homes with zero chance of being able to afford a home, I’ve spent loads of my own money on my housing association property as it was needed, it would be well rewarded if I could get the opportunity to buy it, it’s the only way for me to invest for my daughters future.
Would be deeply grateful for this.