How are the proposals to extend the policy in England likely to affect future housing provision and what alternatives are there? Policy was now about dismantling the legacy of council housing and Housing Action Trusts. Professional Negligence The abuse centred mainly on brokers charging excessive fees which were taken out of clients' discounts, either without their knowledge, or after having been incorrectly explained. Extending the Right to Buy to housing association tenants revived a previous Parliamentary debate and raised questions about the legal position of charities and the risks faced by housing associations and their funders. He provides an in-depth and accessible assessment of the policy, its past, present and future, informed not least by his work in this area over the last 35 years. Estate agents boards are lined up outside houses in south London June 3, 2014.
The Right to Buy with lower discounts would have had much less impact. Housing associations had received government subsidy and consequently should be subject to the same regime as local authorities. An important addition was the commitment to reinvesting capital receipts back in housing, replacing dwellings lost to the social rented sector on a one for one basis. Higher discounts introduced periodically after 1980 boosted sales, while later restrictions on maximum discounts reduced them. From the proceeds, some went back to the Treasury, some to the local authority leaving a receipt of just £27,000.
There are horror stories of homeowners buying multiple council homes and struggling to make mortgage payments because payments were higher than the value of the house through the negligence of brokers. After the election of May 1979 a new Conservative government drafted legislation to provide a Right to Buy but, because this would not become law until October 1980, also revised the general consent May 1979 to enable sales with higher discounts matching those proposed in the new legislation. This was resolved in 1967, with the insistence on market-value based pricing that has applied ever since. Government enabled housing associations to access private finance by letting their dwellings as assured tenancies without the Right to Buy. By 2015 potential maximum discounts were at their highest ever level and, along with low interest rates and rising house prices, provided an attractive environment for housing association tenants to buy. Following this the Minister for Housing and Local Government provided the first of a series of general consents, published between 1952 and 1979. If they are forced to sell off those houses at a discount, that rent disappears and the debt becomes impossible to repay.
Legislation had included provision for such sales but, because councils had received subsidy from the exchequer, any sales required consent from the Ministry of Health. Yet, if the Conservatives meet their commitment to build a new house for every one that's sold, what's the problem? Although the Right to Buy has remained in England since 1980, by July 1983 amendments were planned and the general consent was amended ahead of new legislation. But what is the Right to Buy policy, how has it developed and what has its impact been? But not all local authorities were enthusiastic builders and even those that did build were not always accepting of the fact that councils should stay in the business of providing housing. That is, rather than spending the funds the council could get from the sales valued at £4. Presenting up-to-date statistical material the book engages with debates about transfers to private renting, the impact on public expenditure and on the current housing situation, addresses the proposals for new legislation and details the potential impact of these. Issues of fairness and priority and whether the scale of discount was necessary or justifiable were sidestepped under the Right to Buy and the outcome generated substantial capital receipts. The occasional sales between 1919 and 1939 were halted by wartime restrictions and Labour governments after 1945 resisted proposals for sale.
Amendments passed in the House of Lords excluded tenants of charitable housing associations from the Housing Acts of 1980. During that decade, however, the Right to Buy scheme was misused. In the long term the extension of the policy is likely to have some impacts similar to its predecessor: but, in contrast, it requires direct public spending to finance discounts. This may be couched as meeting the aspirations of those who want to buy, but in reality the policy is only likely to directly help the 221,000. There are serious implications for council housing and the social rented sector as a whole in a period of housing stress. The Housing Act 1988 introduced compensation for tenants whose landlords were slow in carrying out duties and removed the cost floor for properties more than eight years old. There are few good things to say about the latest Conservative party pledge to , know as the Right to Buy scheme.
However, where demand for social housing far exceeds supply and the state is planning on selling off stock at a significant discount even if you can replace it one-for-one there is really only one word for the policy: bonkers. Contact Mike Fong +44 0 1772-554947 press tandem-law. Phoenix Community Housing in London recently sold a home worth £210,000 on the open market for just over half of that. The positive news is that this could be claimed back. There are few good things to say about the latest Conservative party pledge to , know as the Right to Buy scheme. It is an essential read for anyone interested in this highly topical issue.
The rationale for this can be questioned in terms of priorities in spending and its impact on the supply of affordable housing and issues related to asset management, choice and mix in social rented housing. The policy had the potential to generate rapid and significant purchases and in turn to trigger disposal of council housing to further speed the decline of social renting. The statutory procedure for selling freeholds of houses and leaseholds of flats severely limited local variation over implementation and the Secretary of State had very strong powers to monitor and intervene. As you can see from the figures, since Right to Buy was launched we have not seen much replenishing of the social housing stock. The difference lay rather in what steps were considered justifiable to achieve the objective and in the not unrelated aspect of attitudes towards local authority housing and the private landlord.
Moreover, most Housing Associations have taken on substantial debts to fund house building over £60 billion according to Orr , which is held against the rents that they receive from residents. In addition there was a cash maximum initially £50,000 that could not be exceeded whatever the years of tenancy In effect the formula referred to a percentage of value or a cash maximum, whichever was lower and as long as this did not bring the price below the historic cost floor. The remaining council housing sector 1,669,000 dwellings was smaller than the housing association sector 2,343,000 and the combined social rented sector provided fewer dwellings than private renting 4,588,000. That's a problem because it seems to ignore one crucial problem: Britain is facing a housing crisis. This is likely to increase social and spatial segregation and limit the capacity of the social rented sector to respond to diverse needs. Yet more than 2 million house sales later, this rationale is no longer as compelling a case as it once was. Although the Right to Buy tends to be presented as a seamless, integrated policy in reality it involved two separate key elements.