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

Kensington promotes Burwood to national accounts role

Kensington Mortgages has promoted James Burwood to the role of national account manager. Burwood (pictured)...

Market Harborough takes specialist lending offer into Scotland

Market Harborough Building Society has expanded its lending footprint to include properties in Scotland,...

Paradigm Consulting partners with Comentis on financial vulnerability support

Paradigm Consulting has agreed a new strategic partnership with Comentis aimed at helping advisory...

Landbay adds assisted legals to new five-year fixed Premier remortgage range

Buy-to-let lender Landbay has expanded its Premier range with the launch of new five-year...

The Darlington adds digital BDM role for Wales and South West

Darlington Building Society has appointed Rebecca Russell as digital business development manager for Wales...

Latest publication

Other news

Kensington promotes Burwood to national accounts role

Kensington Mortgages has promoted James Burwood to the role of national account manager. Burwood (pictured)...

Market Harborough takes specialist lending offer into Scotland

Market Harborough Building Society has expanded its lending footprint to include properties in Scotland,...

Paradigm Consulting partners with Comentis on financial vulnerability support

Paradigm Consulting has agreed a new strategic partnership with Comentis aimed at helping advisory...