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
Will an increase in social housing hold back the UK property market?
Leaks from the UK Treasury are suggesting that the UK government is set to put aside significant funding for social housing across the country. However, while there is no doubt that demand for social housing has never been higher, with more and more homes being repossessed and families thrown onto the street, there are concerns this could impact on the short to medium term potential of a property...
Read MoreBuyers vs. Sellers – the House Price War
There is set to be something of a standoff over the coming months, as buyers and sellers of houses within the UK lock horns over prices. There is a difference of opinion as to the price of housing from either side, with both seeking to gain as much as possible in the tough economy. This is not good news for the UK housing market, and is likely to further stall sales of houses in the future, ac...
Read MoreLate rental payments at five year low
15/11/2013 The number of people who have fallen behind on their rent is now at a five year low, making this the healthiest month since this particular data was first recorded in November 2008. LSL Property services claimed that late rent fell by £49 million between September and October, to 7.1% of total rent in England and Wales, compared with 8.5% in October. Furthermore, this data was ad...
Read MoreWhy is the Nationwide so down on the UK housing market?
The last 24 hours have given those looking towards buying their first property something to think about with news that Nationwide believes UK house prices will fall next year. While this is not a new view in the marketplace, the very fact that company with the reputation and the respect of Nationwide is suggesting a significant fall next year does give food for thought. So what is behind the sugge...
Read MoreAverage UK house price back above £200,000
Information released by the Communities and Local Government (CLG) shows that the average UK house price has now risen back above £200,000. While figures from November show that the rate of increase in the value of property in UK is starting to slow, prices in November were still 0.6% higher than the corresponding period in 2008. However, while house prices are starting to stabilise and consolida...
Read More