MPs criticise the government Right to Buy extension plan
29/04/2016
MPs have sharply criticised the governments plan to extend the Right to Buy to Housing Association tenants which has proven to be a controversial matter.
A report from the Public Accounts Committee (PAC) has questioned how the policy will be funded and asked whether proper replacement homes will be built.
The MPs have also stated that there was evidence that Right to Buy could increase overcrowding for those in housing need.
The government has said that they make no apology for encouraging home ownership.
The idea of the scheme proposed by the government is to allow Housing Association tenants to buy their own homes with discounts similar to those that are currently enjoyed by council tenants.
Members of the Public Accounts Commit Committee said there is a danger that increased discounts for Housing Association tenants would lead to greater fraud.
The Chair of the Public Accounts Committee, Meg Hiller, said the approach to paying for the policy was entirely speculative.
"There are no costing’s or workings out. We are not talking about a 'back of an envelope' calculation - there is no envelope at all."
The Local Government Association and the Institute for Fiscal Studies (IFS) has also criticised the policy, and it has been rejected by the governments of Wales and Scotland.
The extension of the Right to Buy is already being piloted in five areas across England and the government made known it will be funded by councils selling off their most valuable council houses.
The government stated that all council homes will be replaced. However, the MPs have concluded that the government’s commitment “will not ensure that these will be like-for like replacements”, as new homes can “be a different size in a different area, and be more expensive to rent”.
The MPs said such a target as replacing the home on a one-to-one basis would require a five-fold acceleration in housing starts.
The scheme is due to be rolled out across England later this year.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245 or arranging a visit
Share this..
Related stories
UK House prices rise in April
The average price of a house in the UK rose by 1.1pc in April, compared to March, but activity in the housing market remains low, according to Halifax. This means that house prices rose for the third consecutive month, and are now 2pc higher than at the start of the year. Despite these strengthening results, a fall in the amount of mortgage approvals in 2013 has meant that the activity around t...
Read MoreIs Renting The Answer To The Property Slump?
The Royal Institution of Chartered Surveyors (RICS) has reported a sharp rise in the number of people becoming landlords or tenants. It seems as though those who are both unable to sell their properties and those who cannot afford to buy are moving into the rental market at different ends. This has actually seen rental values firm in the UK as demand continues to grow. So is the rental market t...
Read MoreNationwide reports further house price fall
The Nationwide has revealed that house prices in the UK fell by 1.7 percent in September alone which brings the annual fall to 12.4 percent. This latest monthly fall is the largest on record and signals the start of another serious downward spiral for the industry. Finance is scarce, buyers are even scarcer and sellers are coming out in their droves looking to sell at almost any price!
Taylor Wimpey given more breathing space by lenders
Taylor Wimpey, one of the U.K.'s best-known and largest housebuilders, has this evening been given until 31 March to sort out its finances and get the company back in order. Recent discussions with the company's financing partners have concluded with an agreement to review the company's balance sheet and debt structure no earlier than 31 March 2009. Like so many in the industry Taylor Wimpey has s...
Read MoreLand Registry figures show 15.1% annual fall in property prices
Official figures from the Land Registry show that UK property prices fell by 0.8% during January which equates to a 15.1% fall for the year to January 2009. While this is a little less than other property surveys have indicated it still shows a gradual decline in the UK property market. The average house price in the UK is now officially £156,753 which is around £28,000 lower than the figure jus...
Read More