Right to buy '˜done on back of envelope'

MPs on the Public Accounts Committee warn “key policy details have not been clarified” over the promise to give housing association tenants the right to buy their home.

Extending the so-called right to buy, which currently gives council tenants the right to buy their home at a discount, to housing association properties was one of the Conservatives’ key pledges at the last General Election.

The PAC report expresses concern the Department for Communities and Local Government has little idea of the financial impacts of selling so many homes at discounted prices or how the pledge to replace the houses sold will be delivered.

It also warns houses could be replaced with properties of a different size and in an alternative location to those sold.

PAC chairman Meg Hillier MP said: “Extending Right to Buy will affect many thousands of people yet the Department has failed to provide basic information to support its stated aims. Instead we have heard vague assertions about what it will accomplish and how.

“The approach to paying for this policy seems to be entirely speculative. On the basis of evidence heard by our Committee, there are no costings or workings out.

“We are not talking about a ‘back of an envelope’ calculation – there is no envelope at all.”

The PAC report calls on the Government to publish a full analysis by the autumn showing how the policy will be funded.It also recommends Ministers publish figures for the number of new homes completed.