MPs criticise the government Right to Buy extension plan
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
British holiday home owners in Spain win tax ruling
When Alan Roy and his wife Margaret decided to challenge the Spanish authorities with regard to the 35% tax deducted from the capital gain made on their holiday home, even they could not have guessed the repercussions of their action. After making a â‚¬10,000 profit on their property they were charged 35% capital gains tax by the Spanish government which deemed them to be non-resident, against...Read More
London business property market booming
Shaftesbury Group, the prominent UK property operation, last week revealed business in the West End of London was especially brisk over the Christmas and New Year period. The company has announced a significant increase in new tenant agreements approved at rates at or above recent property values for the company's various assets. So what does this mean for the UK property market in general? As...Read More
Is it time to move back into the UK residential property market?
Many investment advisers will have experience of very difficult market conditions but few will have encountered anything like that which we are seeing today. However, even though nobody is exactly sure when the UK residential property market will turn many people believe that one of the best signals that a market is bottoming out is when every single investment "guru" is negative on a particular a...Read More
Google takes on the property sector
While Google has many fingers in many pies, the announcement that the company is looking towards a possible property portal in the future has caused some concern within the UK property market. Indeed yesterday we saw the shares of Rightmove, the U.K.'s leading estate agent, fall by over 10% on concerns that the Google operation could reduce Rightmove's significant market share in the UK. Even t...Read More
Tenants 'live in fear of eviction'
Thousands of private tenants are continuing to live in poor housing because they fear their landlords may evict them if they complain, a new report has claimed.
A study by the Citizens Advice Bureau (CAB) claims that up to one million could be affected in the absence of a law to prevent eviction in such cases.
The charity's estimate is based on government figures concerning the n...