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.

[tds_create_account btn_bg_h="#000000" f_text_font_family="global-2_global" show_version="" tdc_css="eyJhbGwiOnsiYm9yZGVyLXJhZGl1cyI6IjUiLCJkaXNwbGF5IjoiIn19"]

Latest articles

Virgin Money raises selected mortgage rates and launches new 60% LTV deals

Virgin Money is increasing selected residential and buy-to-let rates from 16 September while withdrawing...

Clydesdale to raise residential product transfer rates by up to 0.20%

Clydesdale will increase selected residential product transfer fixed rates from Wednesday 16 September. The lender...

FCA bans former law firm manager over £28m client money case

The FCA has banned a former law firm manager from working in financial services...

National Friendly expands adviser proposition with term assurance launch

National Friendly has moved further into the protection market with the launch of Friendly...

Nationwide names Richard Walker to lead intermediary sales and new-build business

Nationwide has appointed Richard Walker as head of intermediary sales and new build, bringing...

Latest publication

Other news

Virgin Money raises selected mortgage rates and launches new 60% LTV deals

Virgin Money is increasing selected residential and buy-to-let rates from 16 September while withdrawing...

Clydesdale to raise residential product transfer rates by up to 0.20%

Clydesdale will increase selected residential product transfer fixed rates from Wednesday 16 September. The lender...

Getting to know you: Sam Lindsay, My Mortgage Angel

Name: Sam Lindsay Age: 48 Location: Essex Firm: My Mortgage Angel Interests: Helping people on their homebuying...