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Conservatives’ Right to Buy promise is blasted by the industry
The industry has reacted with horror to the Conservatives’ manifesto pledge to extend Right to Buy to the social housing sector.
Altogether, some 1.3m housing association tenants would be able to purchase their homes after three years at a discount of 35%.
Jeremy Blackburn, RICS head of policy, said: “Extending the right-to-buy policy to housing associations and selling our remaining council housing stock is not a responsible approach to addressing the housing deficit.”
Adam Challis, head of residential research at property firm JLL, said: “The expansion of Right to Buy represents terrible policy.”
Other critics said the proposed policy was unfair on private tenants.
Ruth Davison, director of policy and external affairs at the National Housing Federation, said: “We fully support the aspiration of home ownership, but extending right-to-buy to housing associations is the wrong solution to our housing crisis.
“While extending Right to Buy will see some people being able to buy their own home with help from the taxpayer, these are people already living in good secure homes on some of the country’s cheapest rents.
“It won’t help the millions of people in private rented homes who are desperate to buy but have no hope of doing so, nor the three million adult children living with their parents because they can’t afford to rent or buy.
“To use public assets to gift over £100,000 to someone already living in a good-quality home is deeply unfair.”
Gavin Smart, deputy chief executive of the Chartered Institute of Housing, said: “The Conservatives say each home sold under the extended Right to Buy would be replaced on a one-for-one basis – but we know this is not happening under the current scheme.
“Our research has shown that most authorities only expect to be able to replace half or fewer of the homes they sell under Right to Buy.
“Government figures show that between April 2012 and last September, councils started or acquired 2,298 homes using right-to-buy receipts – just one for every 11 sold.
“The next government should be reviewing the way the policy currently works, not extending it.”
Jackson Stops & Staff said it welcomed the extension of Right to Buy, but only “provided that the funds realised are reinvested in the sector”.
Only Hunters estate agents – whose chairman Kevin Hollinrake is standing for a safe Conservative seat – appeared to have anything wholly positive to say about the extension of Right to Buy.
Glynis Frew, managing director, said: “We welcome Cameron’s pledge to extend the Right to Buy to housing associations.
“The fact that more people will be able to buy homes can only be positive as this will facilitate the movement at the lower end of the market and should then have a ripple effect throughout the rest of the market.
“Home ownership is an important part of British culture, with the majority of the population still striving towards owning their own property, so initiatives that promote this are hugely welcome.
“The fact that every house purchased will be replaced on a one-for-one basis is a massive plus too. This will provide more affordable homes whilst ensuring no-one is forced to leave their home.”
Right to Buy was scrapped in Scotland last year and is set to be abolished in Wales if Labour continues to hold the balance of power.
http://www.propertyindustryeye.com/conservatives-right-to-buy-promise-is-blasted-by-the-industry/
