This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A number of MP’s have moved to lambast plans outlined by the Government to extend the Right to Buy scheme to Housing Association tenants.
The Public Accounts Committee has released a report that questions how the policy will be funded and how replacement properties will be constructed.
Overcrowding
In addition, the MP’s argue that there is evidence that Right to Buy could actually increase overcrowding for those most in need of housing.
As an objective, the scheme is designed to allow Housing Association tenants to buy their own homes, with discounts akin to those currently enjoyed by council tenants.
The Public Accounts Committee has said that there is a danger that an increased discount for Housing Association tenants would lead to more fraud.
Speculative
Meg Hillier, chair of the Public Accounts Committee, noted that the approach to paying for the policy was speculative. She said, ‘there are no costings or workings out. We are not talking about a back of an envelope calculation-there is no envelope at all.’[1]
Previously, the policy has been criticised by the Local Government Association and the Institute for Fiscal Studies. What’s more, it has already been rejected by the Welsh and Scottish governments.
The Government has stated that the extension of Right To Buy, currently being piloted in five UK locations-will be funded by councils selling off their most valuable houses.
However, the MP’s against the move said the Government’s commitment, ‘will not ensure that these will be like-for-like replacements.’ They argue homes, ‘can be a different size and in a different area and may cost more to rent.’[1]
Right To Buy extension slammed
Difficulty
In their report, the MPs noted that it would be extremely difficult to replace homes on a one-for-one basis.
The Government however has insisted that all replacements homes will be constructed.
A spokesperson for the Department of Communities and Local Government said, ‘this Government makes no apology for helping people into homeownership. Our voluntary agreement with housing associations will mean 1.3 million tenants will have the chance to own their own home, while every home sold will be replaced with a new affordable property.’[1]
More information on the extension can be found here.
[1] http://www.bbc.co.uk/news/business-36163172
