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

My Legal Club adds three firms to conveyancing panel

My Legal Club has appointed three law firms to its conveyancing panel as it...

Gatehouse Capital strengthens Scottish broker support with new appointment

Gatehouse Capital has appointed Hanif Hussain as business development manager for Scotland as it...

Gen H reduces high-LTV mortgage rates by up to 20bps

Gen H has cut mortgage rates for borrowers with smaller deposits by up to...

Expat buy-to-let rates rise sharply for lower-LTV borrowers

British expatriate landlords with larger deposits are facing higher mortgage rates than borrowers with...

Commonhold reform faces practical challenges over finance and building management

The introduction of commonhold as an alternative to leasehold will require significant preparation across...

Latest publication

Other news

My Legal Club adds three firms to conveyancing panel

My Legal Club has appointed three law firms to its conveyancing panel as it...

Gatehouse Capital strengthens Scottish broker support with new appointment

Gatehouse Capital has appointed Hanif Hussain as business development manager for Scotland as it...

Gen H reduces high-LTV mortgage rates by up to 20bps

Gen H has cut mortgage rates for borrowers with smaller deposits by up to...