Right to Buy homes end up in private rented sector

One of the biggest transfers of wealth from the state to private individuals was highlighted yesterday in a report by my London Assembly Labour colleague Tom Copley AM.

At least 36% of homes sold through Right to Buy in London are now let by private landlords, according to research revealed in From Right to Buy to Right to Let.

Trellick Tower

How can it be fair that homes built at taxpayer expense are then sold at a substantial discount and end up lining the pockets of private landlords? Is it right that many councils are forced to rent former homes back at higher market rates in order provide much-needed housing for low-income families?

I say this is a bad deal for taxpayers and for those in need of homes. That’s why I welcome the recommendations outlined in the report:

  • Mandatory covenants on all Right to Buy properties so they cannot be let through the private rented sector.
  • The current system of discounts should be abolished.
  • A new system should be introduced whereby local authorities retain an equity stake in any property sold.
  • Local authorities should have a ‘right not to sell’ if it is not in the community interest to do so or if they believe it would harm their housing operations.
  • Replacement homes built with Right to Buy receipts should be like-for-like: mirroring the rent, size and tenure specifications of the home sold

About nickygavron

Former Deputy Mayor of London. London Assembly Member, Chair of Planning Committee, and GLA Labour Spokesperson for Planning. NPF Member.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s