221,000 tenants eligible for proposed Right to Buy Scheme
More than 221,000 housing association tenants would be eligible and able to afford to buy their homes under the Conservative’s proposed new Right to Buy scheme.
This is the finding of tentative modelling by the National Housing Federation (NHF) seeking to establish how many people could feasibly buy their home under the controversial policy, which was announced in the Conservative manifesto this week.
The Conservatives are proposing to extend the policy to 1.3 million housing association tenants, funded by forcing councils to sell off expensive homes to raise £4.5bn a year.
Joe Sarling, senior analyst at the NHF, pointed to English Housing Survey data showing 1.4 million households have been living in their property for at least three years – a condition of eligibility under the Right to Buy. Of these, 550,000 households already qualify for the preserved Right to Buy as stock transfer association tenants. This leaves 850,000 eligible.
The NHF has used government data on incomes and house prices to calculate that of these 850,000, around 221,000 households would be able to afford the mortgages, based on a mortgage three-and-a-half times salary with a 5% deposit. The NHF calculates this level of take-up would cost £11.6bn.
Posted Tuesday, April 28th, 2015 by Chris Potter