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AS 2011: Govt to offer social tenants 50% discount on right to buy

The Government plans to “reinvigorate” the right to buy scheme by offering families in social housing discounts of up to 50 per cent off the purchase price of their homes.

Giving his autumn statement today, Chancellor George Osborne said the receipts from this scheme will be used to build more affordable homes.

Osborne added the previous Government had “slowly strangled” the right to buy scheme.

Last week, the Government announced plans to launch a mortgage indemnity scheme that will see it underwrite part of the risk, along with house builders, of lending to first-time buyers to allow more of these people onto the housing ladder.

It also announced a £400m fund to target house building schemes that have stalled through a lack of development finance.

Click here for all the latest news and views from the autumn statement 2011.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Bob Riach Riach Independent Financial Advisers 29th November 2011 at 1:10 pm

    Social housing should be increased not removed from stock!

  2. Great idea – remove more homes from the rental stock at a time when there is an urgent need for mobility within this market and house building is at an all time low.

    Less than 1,000 affordable homes were built in the last 6 months.

  3. I have never posted on here before but I have to agree completely with Bob Riach. We are in desperate need of more social housing! And the reason we need it? Because Thatcher sold off so much and now they want to sell more. Bonkers.

  4. This is utter madness.

    The government was wrong to allow the best tax-payer-owned housing stock to be sold off cheap, back in the ’80’s and 90’s. And it is even more wrong today.

    It was immoral for two reasons. Firstly because those council houses had been bought and paid for by general taxation – the lucky occupant at the time had simply paid a few bob in rent whilst the local authority had paid for the upkeep of the property. Secondly, the occupant was, effectively, given the keys to a house at a ridiculously low knock down price simply because he was in the right place at the right time – not so lucky the people who were on a council house waiting list but meanwhile were renting in the private sector.

    If you want to rent now you have to either queue up behind an immigrant with 6 kids and then go live on a sink estate or rent from a private landlord.

    The government should be building decent social housing. Let’s be honest, even the post-war pre-fabs would be better than living on a run down council estate in the middle of Birmingham, Liverpool or Glasgow. With modern materials and 21st century construction techniques, the government could erect hundreds-of-thousands of 21st century pre-fabs every year (or even mobile home parks) which would provide decent living accommodation (in pleasant surroundings) for almost anyone able to afford a modest rent.

  5. Has anyone spotted the usual politians wording – Up to 50% discount off social housing. What is social housing? That held by the council and/or housing associations

  6. If the government is going to give up to 50% discount on social housing, do the people have to repay the discount when they sell thier houses? Also, what happens to all the forien peole who sell their houses and then go back to thier original counrty of origin? WOULD IT NOT BE FAIRER TO GIVE EVERYONE THE SAME DEAL EITHER IN A DISCOUNT OR IN A LUMP SUM IF THEY ALREADY HAVE A HOUSE

  7. Please note this scheme would be great for most people, BUT…. Right to buy is only for tenants who were housed prior to April 1996, if you fall into the category of after 1996 like me then you only have the ‘right to aquire’.
    I have been a social tenant for over 10 years, and because I have provided a pension for me and my spouse I will continue to pay rent for my home, now ask yourself, why would I wish to buy my home, when others who have not made such provisions will get their rent paid for.
    I am a 42 YO with 5 children and has never been out of work, I would love to buy my home but will not qualify.

  8. It seems people forget that :

    1. It is cheaper to build than to buy a house
    2. No one wants to live with yobs
    3. Council is no longer responsible for the tenant.

    If the government is selling off to build more in my opinion it is a good idea as more houses will be build and because it is government backed it will be easier to get right to build.
    It is out of jealousy of how much we paid to buy ours that blinds us from this. Most only think it is a bad idea because they don’t want someone getting 50% off but none of them will want to live in those houses or environment.
    PS it cannot be sold off after buying for some years.

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