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

Twenty7tec deepens FinCalc integration within ADVICE platform

Twenty7tec has expanded the integration between its ADVICE platform and FinCalc, allowing advisers to...

Cambridge BS backs homelessness charity with £10,000 grant

The Cambridge Building Society has strengthened its partnership with homelessness charity Jimmy’s Cambridge by...

Hodge widens foreign national mortgage criteria with 95% LTV lending

Hodge Bank has expanded its foreign national mortgage criteria, increasing maximum loan-to-value limits and...

Landlords release more equity to fund buy-to-let improvements, says Paragon

Landlords significantly increased remortgaging activity to fund improvements to their buy-to-let properties during 2025,...

Gen H cuts high loan-to-value mortgage rates by up to 20bps

Gen H has reduced rates across its higher loan-to-value mortgage range, with the largest...

Latest publication

Other news

Twenty7tec deepens FinCalc integration within ADVICE platform

Twenty7tec has expanded the integration between its ADVICE platform and FinCalc, allowing advisers to...

Cambridge BS backs homelessness charity with £10,000 grant

The Cambridge Building Society has strengthened its partnership with homelessness charity Jimmy’s Cambridge by...

Hodge widens foreign national mortgage criteria with 95% LTV lending

Hodge Bank has expanded its foreign national mortgage criteria, increasing maximum loan-to-value limits and...