Right-to-buy policy will be reformed

Since 1980, people have been able to buy their council homes for a discounted rate under the right-to-buy scheme.

Due to ongoing concerns that there aren’t enough social houses in the UK, there’s been some uncertainty about whether Labour will keep the policy.

Deputy Prime Minister Angela Rayner, who bought her own house under right to buy in 2007, has confirmed she doesn’t want to see it scrapped.

She told Sky News the government is currently consulting on it to make sure people can afford to buy their council homes while ensuring sold properties can be replaced.

Rayner added that she’s “very clear” people have the right to buy, while a government spokesperson confirmed “there are no plans to abolish” the scheme.

Any changes to the policy will be expected in Chancellor Rachel Reeves’ first budget this October.

What is right to buy?

Under right to buy, most council tenants can purchase their homes at a discount.

You can do this in England if:

• it’s your only home
• it’s self-contained
• you’re classed as a secure tenant (this usually applies automatically after you’ve lived there for 12 months)
• you’ve had your local council, housing association or NHS trust as a landlord for three years (it doesn’t need to be three years in a row)

If you’ve rented for up to five years, you can save 35% on the price of your house (50% if you live in a flat). Your discount will increase for every extra year afterwards to a maximum 70% saving (currently £102,400 in England or £136,400 in London).

There are different right-to-buy rules in Wales, Scotland and Northern Ireland.

Why are people concerned about right to buy?

Homelessness charity Shelter says only 4% of homes bought under right to buy have been replaced, while 43% of private renters who get housing benefits live in homes bought under the scheme.

Housing lists are longer than ever, despite there being 1.4 million fewer social homes than in 1980.

Local councils have called on the government to end the “broken” scheme before the housing crisis worsens.

They want to see:

• regional discounts instead of a blanket reduction
• fewer homes sold under the scheme so councils can replace them more easily
• a complete block on right to buy for newly built council homes
• eligibility extended until you’ve rented for at least 10 years
• the length of time they can keep 100% of their right to buy receipts extended to 10 years (currently it’s just two)
• financial health checks for those planning to use right to buy to make sure they can afford the ongoing costs of homeownership
• an emergency capital funding injection of £644m to cover lost rent after being capped by government