PM looks to increase discounts in bid to make Right to Buy more attractive
The government intends to raise Right to Buy discounts to make the scheme more attractive to tenants, the Prime Minister has revealed.
David Cameron said the money raised would be used to pay off the debt and fund more affordable housing.
“Under this new plan, for every home bought under Right to Buy a new affordable home will be built – over and above our existing plans,” the government said.
It also claimed that under the previous government discounts “were reduced to very low levels, which resulted in fewer people being able to take up this opportunity”.
Full details will become available when the government publishes its housing strategy. The proposals to change will be consulted on and any changes would require secondary legislation.
On the impact on the housing revenue account reforms, the government said: “The reform of the HRA is and remains a key coalition housing policy and its timetable remains unchanged. We will ensure councils keep the proportion of the receipt needed to cover the debt associated with any property sold to ensure that each business remains viable.”
The government added that:
- Its intention is that the offer will apply to tenants with the Right to Buy and Preserved Right to Buy
- It would work with providers to ensure that the changes do not have a detrimental financial impact on providers whose tenants have the Preserved Right to Buy
- It does not intend to include tenants with the Right to Acquire under the scheme. “The Right to Acquire is offered on a different basis to reflect the different tenancy and type of landlord. This has always been the case.”
It also insisted that many social tenants would be able to meet the cost of the mortgage after allowing for the discount.
