Prime Minister Boris Johnson has set out plans to allow building-and-loan tenants to buy real estate at significant discounts. It also opens the door for low-income people to use their housing allowance money to get a mortgage.
Speaking at a seaside resort in Lancashire, Blackpool, the Prime Minister revealed the greatest boost to the purchase rights policy since the 1980s, which was Margaret Thatcher’s flagship policy.
However, Polly Neate, CEO of the Housing Charity Shelter, describes it as a “dangerous gimmick” and states: .. “
Johnson, who survived a vote of confidence in leadership in the Partygate case on Monday night, also used his speech to address the living cost crisis exacerbated by rising gasoline prices.
He states: “We have the tools we need to keep up with rising prices. Global headwinds are strong, but our engine is more powerful. And it’s neither quick nor easy, but things get better, and We can be confident that we will emerge from this strong country with a healthy economy. “
Purchase rights policies have been criticized for years for eroding social housing inventories and boosting government payments for housing benefits.
Study by In the house of 2017 It turns out that 4 out of 10 properties purchased under the right to purchase are currently rented out personally and many of those landlords are paid rent from housing allowances.
Simon Hill, author of the New Economics Foundation, said: This means a larger housing allowance that will eventually go into the bank account of a private landlord, rather than a council or building-and-loan that recycles into public investment. “
However, housing secretary Michael Gove said that unlike Thatcher’s purchase rights policy, the new scheme reinvests receipts from sales in social housing with a “similar, one-to-one exchange” model. Said to guarantee that.
This is not the first time the Conservatives have tried to extend purchasing rights to building-and-loans.
After winning the 2015 general election, Prime Minister David Cameron has announced plans to allow 1.3 million housing union residents Buy their property.
However, the legislation was shelved in response to opposition from the building-and-loan. In 2018, Theresa May promoted a pilot project in the West Midlands, leading to the sale of 1,892 housing union properties, but struggled to implement Brexit without a majority in Congress, so it was not possible to proceed with a national plan. There was not.
One of the most radical but complex parts of the policy revealed by Johnson in Lancashire is that some of the £ 30 billion housing allowances rented to private landlords will instead secure and pay mortgages. It is a proposal to be directed to.
Shadow Housing Secretary Lisa Nandy said there are still “big open questions for the government” about how the housing allowance money can be used to buy a home.
Nandy tells the BBC: “There is a serious shortage of affordable homes in this country. There are 100,000 people on the home waiting list.”
PA Media contributed to this report.