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

Royal London appoints Gelling as risk chief

Royal London has appointed Louise Gelling as group chief risk officer, subject to regulatory...

Remortgage searches rise 7% in July

Residential remortgage searches increased by 7% during July as purchase and buy-to-let activity weakened,...

LEASE launches lease extension cost tool

The Leasehold Advisory Service has launched a free online tool enabling leaseholders to check...

Vida mortgage lending more than doubles to £840m

Vida Group Holdings increased gross mortgage lending to £840m during the first half of...

Affordability blocking housing recovery

Improving confidence is encouraging buyers back into the housing market but affordability remains the...

Latest publication

Other news

Royal London appoints Gelling as risk chief

Royal London has appointed Louise Gelling as group chief risk officer, subject to regulatory...

Remortgage searches rise 7% in July

Residential remortgage searches increased by 7% during July as purchase and buy-to-let activity weakened,...

LEASE launches lease extension cost tool

The Leasehold Advisory Service has launched a free online tool enabling leaseholders to check...