Right to Buy scheme, ‘will erode housing associations’
By |Published On: 26th January 2016|

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Right to Buy scheme, ‘will erode housing associations’

By |Published On: 26th January 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Yesterday saw the Government announce that a pilot for the new Right to Buy scheme was to be trialled in five housing association areas.

As part of the pilot, the first housing association tenants can apply for the Right to Buy scheme, which comes ahead of a nationwide rollout later on in 2016. This follows a voluntary understanding between the Government and National Housing Federation to enlarge the Right to Buy scheme to 1.3 million housing association tenants.

Right to Buy scheme, 'will erode housing associations'

Right to Buy scheme, ‘will erode housing associations’


However, Stephen Smith, Director of Legal & General Housing Partnerships, described the extension as, ‘unfortunate,’ and believes the scheme will reduce the availability of affordable homes.

Smith also noted on that the scheme, ‘will ultimately erode housing associations’ ability to build homes.’ He believes, ‘this will reduce the number of affordable properties available in the UK when we need a greater supply of housing, not less.’[1]

‘Forcing the sale of homes at a reduced market value will ultimately disrupt a well functioning sector, making it harder for housing associations to allocate resources to housebuilding and more difficult for investors to lend to them. We hope that the Government reconsiders this decision before fully implementing it and instead look to other ways in which to produce affordable housing by focusing on the root cause of the housing crisis and tackling supply side issues,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/property/government-urged-to-reconsider-right-to-buy-scheme.html


About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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