MPs call for right to buy rethink

Ministers are being to ensure their plans to extend the right to buy to housing association tenants should include measures protect affordable rural housing.

Extending the right to buy was one of the central policies of the Conservatives’ General Election manifesto and designed to open up home ownership to more people.

But critics have expressed concern that the sold homes will not be replaced quick enough, despite Government promises at least one new property will be built within three years for everyone bought by its tenant.

A report by the Communities and Local Government Committee of MPs published today warns that housing association properties in rural areas could be hard to replace because of the difficulties associated with building in the countryside.

It points out that large numbers of right to buy homes have ended up as rented properties and calls for a clear protections for affordable housing in rural areas to ensure current properties remain available to local people.

The committee is also worried that landowners in rural areas might be discouraged from donating land for housing to help local people because they fear it will just be sold into the market.

Sheffield South East MP Clive Betts, the committee’s chairman, said: “The fundamental success of this policy will depends not just on whether more tenants come to own their home but on whether more homes are built.

“As a committee, we are concerned that there are a number of unresolved issues with the Government’s policy which could have a detrimental effect on the provision of accessible and affordable housing, particularly affordable rented property.

“The Government needs to set out in more detail on how it will meet its target of at least one-for-one replacement of the sold homes, particularly given issues such as the availability of land, the capacity of the building industry and the uncertainty of income from council home sales.”

The committee’s report also expresses concern that the policy will be funded by making local authorities sell-off their most expensive houses as they become vacant.

Councils holding onto the properties will be forced to pay a levy to the Government to help pay for right to buy discounts but no detail has yet been given over what will be considered a “high value” house.

The committee is calling for the Government to pay for the policy with central funds rather than through a levy on councils.

Leeds City Council leader Judith Blake said: “We are seeing a sustained attack by the Government on affordable housing provided by councils and housing associations. More Right to Buy, selling off supposedly “high value” council properties and extending the definition of “affordable housing” to include “starter homes for sale for less than £250,000” all reduce the amount of affordable homes available for people in Leeds.

“In an age of supposed devolution, we are being told which homes we need to sell off to fund this ill thought through scheme, which will leave deserts of affordable housing across much of the district. Rather than tinker on the margins, I hope central government will have a good look at the changes they are suggesting and think again about these disastrous plans.”

Jayne Dunn, cabinet member for housing at Sheffield City Council, said: “It is no secret that we have a severe shortage of affordable homes across the country. Sadly, this Government, which has decimated funding for affordable housing over the last five years, has shown little interest in solving the housing crisis.

“The Government should be supporting councils and housing associations to build new social housing. Instead, they are forcing councils to sell their stock and slashing grant funding to enable housing associations to build new homes. As the CLG Committee’s report makes clear, the policies this Government are pursuing will result in less affordable housing. Places like Sheffield needs more affordable housing for rent, not less.”