Right to Buy: My Reaction to the Queen’s Speech

If previous experience of Right to Buy is anything to go buy, far from a one for one replacement, councils have only been able to replace one in 19 properties lost under Right to Buy.

RIght to Buy does nothing for people in the private rented sector, nothing for those on waiting lists, nothing for those living at home with their parents. It will cost a small fortune in public subsidy, and that subsidy could be better used to resolve the housing shortage.

Right to Buy has already reduced the amount of social housing, with up to 40% in some areas now in the private rented sector where rents have been pushed up three to four times their social rent levels.

It will also put housing associations in a difficult position where they may not want to sell their properties because of the impact on their revenue streams, something that might trouble those who lend to housing associations.

There is also the complication with charity law. The government will be forcing charities to sell assets the government may have had no part in funding in the first place.

What could happen is people in the nicest properties will take advantage of the Right to Buy and the people in the worst properties won’t, often because those homes are not mortgageable. The danger is it could provide a perverse incentive for some housing associations not to provide really good accommodation.

Extending Right to Buy is ill-conceived and just plain wrong.

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One thought on “Right to Buy: My Reaction to the Queen’s Speech

  1. “properties lost under right to buy”? No properties have been ‘lost’ they just have different owners.

    “RIght to Buy does nothing for people in the private rented sector, nothing…” it moves a property in to the private sector where it could be privately let etc – but Not having a ‘right to buy’ does nothing for any of the groups you mention either.

    Subsidised housing is a measure of social failure – it is not a good thing for its own sake.

    The government controling what it doesn’t own – well thats what government does, so the less government we have the better. You take its ‘tax benefits’ by being a charity, you play by its rules.

    The government wants its ‘tax breaks’ to subsidise house building, not managing existing properties. It is crazy that we need so many new houses – but the EU Referendum may help in that regard.

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