Queen announces government’s housing policy.
The Right to Buy is to be extended to housing association tenants in England. The controversial election pledge is now in the Queens speech.
This will extend Margaret Thatcher’s right-to-buy scheme to 1.3 million housing association tenants in England.
The Welsh Government is out to consultation on wishing to scrap the right and Scotland has already scrapped it.
So this will be an English only law for English people. Poor things.
How will it work? Much like the current scheme. Tenants will be offered discounts worth up to £102,700 in London and £77,000 in the rest of England.
Of the 2.5 million housing association tenants in England 1.3 million have lived in their properties for three or more years and will be able to buy their home.
To pay for the scheme councils will be obliged to sell off the most valuable homes from their remaining stock. It is reckoned that these sales will reap in £4.5 billion. The cash will be used to build a replacement affordable home on a one to one basis. Well, that’s the theory.
Selling off two affordable homes, the council’s expensive one and that of the housing association, for the price of one. A slightly strange policy when there’s a massive shortage of affordable homes.
Two from the receipts of one?
But hold on, the government reckon that not only will they have enough cash to build two replacement homes in the area they were sold, and some left behind to pay the debt.
Oh yes, this is Mickey mouse economics.
In much of the country, Right to Buy property prices (after the discount) aren’t big enough to cover the cost of building a new home, especially when the Treasury are taking their cut.
What is announced today sounds very similar to the existing scheme why should it produce a different outcome?
As Albert Einstein said “Insanity: is doing the same thing over and over again and expecting different results.” Your right Albert, the policy is insane.