Posted tagged ‘Right to Buy’

Right to Build

May 24, 2012

Last month the government relaunched a scheme which has been more controversial than most schemes to emenate out of Whitehall over the years: Right to Buy. Finding its roots way back in the distant past (well, the 80s), this scheme encourages council tenants to take their first steps onto the home ownership ladder through providing a discount should they want to purchase their council owned home.

Apparently, over 2m social homes have been bought by their tenants since the schemes first incarnation, although in recent years this number has tailed off dramatically (only 4000 purchases of this type happened in 2011). Whilst primarily this is down to the tough economic times, it is also down to the fact that the value of the discount fell so heavily. In London for example, the discount fell from 53% way down to 10%, which is a real pain when property prices have increased from £16,493 in the year of the Silver Jubilee to £354,300 during this year’s royal celebrations.

I have very mixed feelings on this issue, and quite a split between my personal and my professional minds. On the one hand Right to Buy is a way for council tenants to grasp on by their fingernails to the property ladder, something which over the years has become tougher to do. With many seeing home ownership as an aspiration, any way of helping can only be seen as a good thing.

However, speaking less selfishly I’m pretty concerned at the current state of affairs. Part of this stems from the scheme itself, but mostly on its impact on the quantity and quality of housing stock remaining and being built to make up for purchased property’s loss. (more…)