Government defends Right to Buy against call for abolition

Government mouth pieces defending the indefensible – in my humble opinion. The most senior of them conveniently sidesteps a key question from MPs, ‘If you sell a house at a discount, how do you buy another one to replace it?’. Answer, ‘Spend what money you do get, fixing up the houses you’ve already got’. That’s helpful isn’t it.

The MJ online By Martin Ford | 22 January 2019 

A top Marsham Street official has defended the Government’s Right to Buy policy as ‘good value for money’ following demands for its abolition.

The scheme came under fire from MPs and the London Assembly this week, when it was accused of undermining councils’ efforts to build social housing and sapping funds.

At yesterday’s meeting of the Housing, Communities and Local Government Committee, Labour MP Liz Twist said: ‘How can you expect councils to invest in new social housing if they have to sell the house at a discount under Right to Buy?

‘It seems a bit strange we are wanting councils to build and yet they are having to sell these houses at a discount down the line.

‘It doesn’t seem to make financial sense.’

Permanent secretary at the Ministry of Housing, Communities and Local Government (MHCLG), Melanie Dawes, said: ‘What we get in terms of economic benefits is that housing associations have receipts they are able to build with so we get the usual benefits from new housing supply.

‘We also get distributional benefits because generally we are talking about lower-income families who are able to buy who otherwise wouldn’t be able to.’

Highlighting London Assembly research published that found 42% of Right to Buy homes sold in the capital are now in the private rented sector, committee chair Clive Betts said: ‘It’s unfortunate many of them end up as buy-to-let properties.’

The London Assembly research by member Tom Copley also found the capital’s boroughs spend £22m each year renting back right-to-buy properties.

Mr Copley said: ‘Something has gone very wrong when tens of thousands of homes built to be let at social rents for the public good are now being rented out at market rates for private profit, sometimes back to the very councils that were forced to sell them.

‘Right to Buy is failing London and should be abolished.’

Cllr Darren Rodwell, London Councils’ executive member for housing, said: ‘These figures reveal the immense costs and inefficiencies caused by misguided policy at a national level and, with boroughs enduring a 63% cut in core funding since 2010, it’s clear we can’t carry on like this.

‘The Government should end its restrictions on the use of Right to Buy receipts so that all money raised from council house sales in London goes back into building more homes.’

MHCLG director general, Jeremy Pocklington, told the select committee: ‘We think it is good value for money.

‘The case for Right to Buy is it helps people into home ownership that would not otherwise be able afford their own home, which is something this Government strongly supports.

‘It does release resources that councils can use to invest in their stock.

‘While homes are being sold – which is enabling people who would not otherwise be able to own their own home – a great many more homes are being built through all the interventions, looked at in the round.’

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