Tory Right to Buy plan could cost taxpayers £20bn

Published on

The Conservative Party manifesto will be launched today, with a headline pledge of extending Right to Buy to housing association tenants.

The extension of the flagship Thatcherite policy is expected to see housing association tenants qualify for a discount on buying a housing association property that will be capped at just over £102,700 in the capital and £77,000 for the rest of England.

However, Ruth Davison, director of policy for the National Housing Federation, told Radio 4’s Today programme that the organisation had previously researched such a move and come up with a conservative cost of £5.8bn, as housing associations would have to be fully recompensed for any shortfall. However, she added that briefings in today’s newspapers said it could cost £20bn of taxpayers’ money.

“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,” Davison told the Guardian.

“To use their taxes to gift as much as £100,000 to someone already living in a good quality home is deeply unfair. Little wonder then that 60% of the public believe that it would be unfair for social housing tenants to get a discount to buy their home while private renters do not.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

ModaMortgages adds fixed-fee options to limited-edition range

ModaMortgages has expanded its limited-edition buy-to-let range with new fixed and percentage-based product fee...

Rely cuts rates for landlords with large property portfolios

Rely has launched a limited-edition range of buy-to-let mortgages for landlords who own 11...

Momenti Group expands Mortgage Minds support for brokers

Momenti Group has added group mentoring and one-to-one strategic sessions to its Mortgage Minds...

Vida introduces part-and-part mortgage option for residential borrowers

Vida Homeloans has launched a part-and-part repayment option across most of its residential mortgage...

Empty homes risk losing standard insurance cover after 60 days

Thousands of owners may be unaware that their empty properties are no longer fully...

Latest publication

Other news

ModaMortgages adds fixed-fee options to limited-edition range

ModaMortgages has expanded its limited-edition buy-to-let range with new fixed and percentage-based product fee...

Bank Rate holds, but the pressure is building

The Bank of England's decision to maintain Bank Base Rate (BBR) last month at...

Rely cuts rates for landlords with large property portfolios

Rely has launched a limited-edition range of buy-to-let mortgages for landlords who own 11...