Council tenants will soon be offered an increased discount of up to £50,000.00 in a Right to Buy scheme shake-up. In some parts of the country this could see discounts trebled.
The shake-up is part of an effort by the Government to “ease the struggle and help some of the two million social tenants in England buy the property they live in”. This could leave many private tenants wondering what sort of help they can expect from the Government.
Under the reforms of the Right to Buy Scheme council houses will be offered for sale with discounts of up to £50,000.00 with Grant Shapps, Housing Minister, commenting:
“The previous miserly restrictions on discounts meant Right to Buy becme, for many tenants, nothing more than an empty promise — a social mobility scheme run by Ebenezer Scrooge.
That’s why I am today publishing proposals that will dramatically increase the discounts under Right to Buy, ensuring it once again becomes a meaningful tool to support social tenants who want to buy the home they live in”.
Previously a central policy of Margaret Thatcher the Government are hoping to re-energise the Right to Buy scheme with Grant Shapps insisting:
“We are also determined to maintain the number of affordable homes for rent – so for the first time, every additional home that is sold will be replaced by a new affordable home on a one-for-one basis.
The new homes for affordable rent will help get the nation building again, and help councils meet housing need”.
The question now is how will they maintain the number of affordable homes for rent? If they sell off the current council and local authority stock where will the properties come from?
There is currently a maximum discount ranging from £16,000 across London to £38,000 in the South East, and discounts will also depend on the length of the tenancy and the age and condition of a property.
A tenant of eight years in the West Midlands with an income of £20,000 could get a discount of £50,000 based on a purchase price of £90,000 for a flat, this is compared to a previous discount offered of £26,000.
Plans are to be discussed with tenant organisations, lenders and landlords with CML Director General, Paul Smee, commenting:
"In principle, we welcome this consultation on changes to Right to Buy".
What do you think of Right to Buy schemes — are they a good or a bad idea?
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