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

Inspired Lending funds £2.6m off-market property deal in Shrewsbury

Inspired Lending has provided £2.6 million in short-term finance to back the off-market acquisition...

Knowledge Bank launches AffCalc to enhance affordability checks for brokers

Knowledge Bank has rolled out the full release of its new affordability assessment tool,...

Roma Finance bolsters team with two senior hires

Roma Finance has made two senior appointments as part of its strategy to double...

Many first-time buyers aim to clear their mortgage by 40, TSB finds

More than one in six first-time buyers hope to be mortgage free by the...

Loft conversions can add a quarter to home values

Homeowners who extend upwards are reaping the biggest rewards, with new data from Nationwide...

Latest publication

Other news

Inspired Lending funds £2.6m off-market property deal in Shrewsbury

Inspired Lending has provided £2.6 million in short-term finance to back the off-market acquisition...

Knowledge Bank launches AffCalc to enhance affordability checks for brokers

Knowledge Bank has rolled out the full release of its new affordability assessment tool,...

Roma Finance bolsters team with two senior hires

Roma Finance has made two senior appointments as part of its strategy to double...