Money raised from Right to Buy sales of council houses is set to be used by one local authority to help first-time buyers into private home ownership by giving them a deposit of up to £50,000.
It is thought that other local authorities with long waiting lists for housing will follow suit.
Tory-led Wandsworth Council would put money from Right to Buy sales into a pool, from which it would pay first-time buyers – who need not be council tenants – a deposit. The deposits would be repaid into the pool when eventually sold, and the council is also suggesting that private developers could contribute to the fund.
The council welcomed this week’s announcement that the Government plans to revitalise Right to Buy by boosting the level of discount.
Although David Cameron and housing minister Grant Shapps have said they expect one new affordable home to be built for every council house sold under the scheme, Wandsworth made clear that it also wants to use the money raised to help non-council tenants buy a home.
The council has been actively lobbying for Right to Buy to be re-invigorated after seeing a slump in sales from 274 in 2003 to just seven last year, following the previous Government’s reduction of Right to Buy discounts from £38,000 to £16,000 in most areas.
Wandsworth wants the ability to set the level of discount itself, and is also calling for council tenants to be able to use their Right to Buy discount to buy privately, thus freeing up social housing.
Cllr Ravi Govindia, leader of the council, said: “The Government’s announcement is an important step towards helping a new generation of people into home ownership.
“Just as Right to Buy inspired an estimated two million people to buy their home, we need new ideas so that their children can grasp the same opportunities. First-time buyers can no longer rely on the Bank of Mum and Dad.”
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Comments
A view from a more rural perspective.
The right to buy has greatly enhanced many of our local authority estates in towns and villages. It has without doubt increased values on these estates and had a massive effect in villages.
Whilst I accept that not many agents will benefit from these proposals immediately, the more astute financial advisers will see this as a fantastic opportunity, and in the long run provided new homes are built I see no reason why it should not be welcomed by our profession.
Oh god, please no.
Been here before.
Remember the fall out.
How many of you repossessed a 14th floor flat in an East London tower block and watched it sold at auction for the small change in somebody's wallet?
I did three in 1992.
Stop this madness NOW before 2014 is the same.