Angela Rayner Considers Ending Right to Buy Scheme Amid Housing Crisis

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Deputy Prime Minister and Housing Secretary Angela Rayner is reportedly considering the abolition of Margaret Thatcher’s Right to Buy scheme as part of broader housing reforms. In August, Rayner attended an urgent meeting with local authorities to discuss potential changes to the housing sector. This move signals a significant shift in housing policy, as the government aims to address the continued decline in the availability of social rent homes.

 

The Ministry of Housing and Local Government has confirmed that it is “working at pace to reverse the continued decline in the number of social rent homes.” Although the department has not explicitly ruled out abolishing the Right to Buy scheme for newly built council homes, there is speculation that such a measure could be included in Rachel Reeves’ first budget this October.

 

The Right to Buy scheme, introduced in 1980 under Margaret Thatcher, allows council housing tenants to purchase their homes at substantial discounts—up to £100,000. Rayner herself utilized this scheme in 2007 to buy her council house with a 25 percent discount, later making a reported profit of £48,500 when she sold it eight years later. However, recent reports suggest that the scheme has contributed to a significant shortfall in social housing. More than 100 councils have called for the scheme to be scrapped, arguing that it has created a £2.2 billion deficit in local authority budgets and exacerbated the UK's housing crisis.

 

Statistics from the previous year indicate that while 10,896 homes were sold through Right to Buy, only 3,447 were replaced, resulting in a net loss of 7,449 social homes. Since 1991, the scheme has led to the loss of approximately 24,000 social homes. A report commissioned by Southwark Council recommended ending the Right to Buy scheme as one of several measures to stimulate housebuilding and help Labour meet its goal of constructing 1.5 million homes during this parliamentary term. Labour has also committed to reviewing the discounts offered under the scheme, as well as the eligibility criteria and the use of proceeds from sales.

 

The proposal to end Right to Buy has drawn criticism from Conservative figures. Shadow Housing Secretary and Tory leadership contender Kemi Badenoch accused Rayner of seeking to “destroy one of Margaret Thatcher’s most transformative policies.” Similarly, Tory leadership rival James Cleverly argued, “Margaret Thatcher gave ordinary people the opportunity to have the security and freedom of owning a home of their own. Angela Rayner wants to take that away.”

 

A Ministry of Housing, Communities and Local Government spokesperson dismissed claims that the government is planning to abolish the scheme, stating, “Right to Buy remains an important route for council housing tenants to be able to buy their own home, but it’s scandalous that only a third of council homes sold under the scheme have been replaced since 2012. That is why we are working at pace to reverse the continued decline of social rent homes. Increasing protections on newly-built social homes will be looked at as part of our wider review, but there are no plans to abolish the Right to Buy scheme.”

 

Credit: The Independent 2024-09-06

 

 

 

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