A controversial policy has been announced by the Conservatives – an extension of Right to Buy. The change will mean it covers all Housing Association properties, as well as council ones. It has been met with concern from the housing industry, renters and the general public alike.
Right to Buy was introduced by Margaret Thatcher in the late 70s to an enthusiastic public, helping to win her the 1979 general election. Council tenants were able to buy their house at a huge discount, depending on how long they had lived in their house. Over the years it has become more and more unpopular, as the houses were not replaced and our country became more and more crowded.
David Cameron is presumably attempting to replicate Margaret Thatcher’s success at convincing working class people to vote Conservative. In extending the Right to Buy scheme to Housing Association properties, an additional 1.3 million tenants will be able to buy their houses, from a 35% discount.
Housing Associations are private, non-profit companies, set up to provide affordable housing for those who need a home. Any money made is invested into creating more homes. They often provide accommodation for the most vulnerable members of society, including the formerly homeless, women fleeing domestic violence, those with mental health issues or the elderly. Which begs the question – are these homes really Cameron’s to give away?
The housing crisis is a key part of the upcoming election, and it’s this that the Conservatives are attempting to latch onto. However those securely housed in Council or Housing Associations properties aren’t the ones that are struggling the most. Those who are in need of help are the ones in private rental accommodation, where neither housing benefit nor wages are enough to cover the rent, and the threat of a Section 21 notice or a rent hike looms over them.
If the government is able to force Housing Associations (some of which are registered charities) to sell their homes at huge discounts, is it able to force this on the private sector too? While it would obviously have a huge and devastating impact on the rental market, it’s the same principle, but helping those who need help, instead of those who are already securely housed.
The cost is another factory that the Tories have yet to explain. They deny that it’s unaffordable, and will fund it by selling off the most valuable council houses when they become vacant. Depending on a number of factors including how many people take up the scheme, and assuming that the government reimburses the Housing Associations for the discount, it could cost the government £5.8bn. This would go a long, long way towards building new houses that people could actually afford to live in, without any Help to Buy, deposit-boosting gimmicks. It could be far, far more usefully spent than forcing charities to sell their most valuable assets with six-figure discounts.
