Government sets out reforms to Right to Buy

admin    Uncategorized     agents

Property118

Government sets out reforms to Right to Buy

The government has announced new reforms to Right to Buy as part of efforts to overhaul and support councils.

The flagship policy, introduced by Prime Minister Margaret Thatcher in the 1980s, was designed to give council tenants in England and Wales the right to purchase their homes from local authorities.

However, the scheme has proven controversial, and following the completion of a Labour government consultation, ministers are now considering changes aimed at making Right to Buy “fairer and more sustainable.”

Minimum eligibility period would increase

Under the new reforms, the minimum eligibility period would increase from three to ten years before tenants can apply to buy their home.

Discount rules would also be amended, with discounts starting at 5% of the property value and increasing by 1% each year up to a maximum of 15% of the property value or the cash cap, whichever is lower.

A 35-year exemption would also apply to new builds, meaning newly built social homes could not be sold under Right to Buy for 35 years after completion.

Change is needed

Gavin Smart, chief executive officer, Chartered Institute of Housing (CIH), said: “CIH welcomes the government’s continued focus on reforming Right to Buy and the clear recognition that change is needed to better protect and rebuild our social housing.

“The measures confirmed are a positive step towards addressing the long-standing imbalance between homes sold and those replaced.

“We also welcome the further work on fraud prevention and the scheme’s impact in rural areas, both of which are crucial to ensuring Right to Buy operates fairly and sustainably.”

Although the Labour government has not abolished Right-to-Buy, it sharply reduced the maximum discount in last October’s Budget, cutting it from £136,000 to £16,000 in most London boroughs, and from £102,000 to £38,000 outside the capital.

The post Government sets out reforms to Right to Buy appeared first on Property118.

View Full Article: Government sets out reforms to Right to Buy

If you enjoyed this article please consider sharing it!