Deputy PM Rayner Proposes Exempting New Council Homes from Right to Buy

Angela Rayner, the deputy prime minister, has indicated her intention to prevent the sale of newly constructed council properties in England through the Right to Buy program. Speaking to the BBC, Ms. Rayner stated that the government plans to impose limitations on new social housing in England, aiming to avoid “losing that stock.” The Right to Buy initiative has, for many years, enabled occupants of social housing to purchase their residences, frequently at a considerable reduction in price. Ms. Rayner declared that the nation is confronting a “homelessness crisis,” concurrently revealing a £10m allocation to assist rough sleepers during the winter months. Margaret Thatcher’s Conservative government launched the Right to Buy policy in 1980. Over two million properties have been sold under this scheme since its inception. Initially, the policy was recognized for boosting home ownership rates; however, it has more recently been cited as a factor in the growing issue of homelessness. Labour has committed to constructing the highest volume of social and council residences since World War Two. Ms. Rayner informed the BBC that she intends for these newly constructed properties to avoid “leaving the system.” “We’ll be putting restrictions on them so that we aren’t losing those homes… we’re not losing that stock.” A consultation regarding this matter is scheduled to be initiated by ministers later this year. The Right to Buy scheme was reinstated in 2012 by the Conservative-led coalition government, which raised the maximum discount available to tenants purchasing their homes. This discount is presently £102,400 throughout England, with the exception of London, where it is £136,400. Angela Rayner herself acquired her property via the Right to Buy scheme in 2007. Since assuming power, Labour has indicated that the discount will be lowered to a range of £16,000 to £38,000, varying by geographical area. Furthermore, the Budget announced last month included provisions enabling local authorities to retain all proceeds from council house sales, a practice that the previous Conservative government also implemented for two years, concluding in March 2024. Prior to this, a segment of each sale’s revenue was required to be remitted to the Treasury. The Right to Buy scheme ceased in Scotland in 2016, and the Welsh government terminated the policy in 2019. Angela Rayner characterized England’s homelessness situation as a “catastrophic emergency situation.” During a visit to a hostel for rough sleepers in south London, she encountered individuals who have recently transitioned from living on the streets. Current data reveals that 4,780 individuals were observed sleeping outdoors in the city during the three-month period from June to September this year, marking an unprecedented peak. Stephen, aged 58, resided in gardens and woods for several weeks prior to his recent arrival at the center. The experienced chef attributed the loss of his home to a deterioration in family relationships, with prohibitive rental costs hindering his ability to obtain alternative accommodation. “Years ago, a room in somebody’s house was called a lodger,” he said.“Now they’re calling them en-suite [rooms]. They’re charging £1,200 for a bedroom a month. Things are too expensive.” The deputy prime minister emphasized the £233m allocated in the Budget to address all types of homelessness, elevating the total commitment to nearly £1bn by 2025-26. Additionally, the government has now committed £10m specifically for combating rough sleeping, funds which it states will be channeled directly to the most in-need councils. The quantity of households residing in temporary housing has reached unprecedented figures, encompassing over 150,000 children. Ms. Rayner conceded that the issue “won’t be fixed overnight,” asserting that resolving homelessness would necessitate collaborative efforts across various government departments. A vital measure involves decreasing the initial incidence of people becoming homeless. Emma Haddad, chief executive of the homeless charity St Mungo’s, expressed encouragement regarding the government’s resolve to advance the Renters’ Rights Bill. This legislation aims to abolish Section 21 evictions in England, a provision that permits landlords to request tenants vacate premises without providing a justification. “We know that most people becoming homeless are coming out the private-related sector, and Section 21 evictions is a large driver [of that]. It’s going to help dramatically,” said Ms Haddad. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external websites. Information regarding our external linking policy is available.