The housing secretary is considering abolishing [Right to Buy] for newly built council houses and cutting the discount offered to existing tenants.
The deputy prime minister is facing growing pressure from local authorities to reduce the cost of Baroness Thatcher’s flagship policy, and a consultation on proposals will be launched in October’s Budget.
More than 100 local authorities called for the scheme to be axed on new council homes in a damning report into the state of Britain’s housing stock published on Tuesday. The report, commissioned by Southwark Council, said the policy was helping to burn a £2.2bn hole in local authority accounts and exacerbating the country’s housing crisis.
Ms Rayner attended an “urgent meeting” with local authorities last month to discuss housing reforms. The Ministry of Housing and Local Government told The Telegraph: “We are working at pace to reverse the continued decline in the number of social rent homes.”
[…]
In Southwark Council’s report, local authorities said Right to Buy had created “a serious problem for the sustainability of England’s council housing”. Ms Rayner said in the summer that the Government was considering protections for new council homes.Discounts on the scheme can reach as much as £75,000 outside of London, and over £100,000 in London. The cap, which is based on how long a tenant rents a property before buying it, is limited to £136,400 in London.
[…]
In the last financial year, 10,896 homes were sold through Right to Buy and only 3,447 were replaced, official figures show – resulting in a net loss of 7,449. Since 1991, the scheme has resulted in a net loss of 24,000 social homes.This is partly because under the current system, councils can only keep a third of the receipts from each sale to build a replacement home, with the rest going to the council and government for other purposes.
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Correct.
You qualify through low income, and as the list to get council housing is long, need is taken into account also.
Right to Buy allows council tenants to buy their homes at a substantial discount on market value. This is alright, as it promotes stability and gives tenants equity, but at the same time, council tenants don't get evicted anyhow, even if their income has become very high, and you can pass on a tenancy when you die if a relative was living in the council house with you.
But the money from the sale of council houses to tenants does not get ploughed back into buying or building more council housing, and the people who bought them can in turn sell them on the open market rather than back to the council.
This has made it near impossible for councils to maintain levels of housing stock, let alone increase it to reflect population growth. In central London, many types of essential worker are hard to obtain as too few can afford to live within commuting distance - large & high quality housing estates in the centre and all through the Boroughs having been sold off under the scheme long ago & snaffled up by developers.
Thatcher brought it in as a populist policy, and to weaken state services, but every other PM after permitted the policy to carry on unaltered.