Right to Buy – Now To Let
According to research by social housing magazine Inside Housing, almost 40% of all homes sold under Right To Buy in England have become buy-to-let investment properties.
The magazine used data released through Freedom of Information requests sent to 91 councils. Their housing survey indicates that a combined total of 127,762 council maisonettes and flats were sold to tenants since the Thatcher government introduced the Right To Buy scheme in 1980.
Of these, some 48,000 leaseholders are registered as living away from the property. Inside Housing suggests that as they are not owner occupied they are probably let through the private rental sector.
The information does not shed any light on how many of the Right To Buy homes were purchased directly by tenants who later became landlords and how many acted as owner-occupiers and then sold the properties on as investment properties at a later date.
In Blackpool, Corby, Milton Keynes Kingston, South Kesteven and Stevenage, more than half of Right To Buy properties are now believed to be privately let out.
The current government is expected to unveil new legislation extending the Right To Buy scheme, and its controversial discounts for existing occupiers, during the autumn. The plan is to include around 1.3m housing association tenants.
Victor Jameson of New View Residential, letting agents in Cambridge, commented: “The picture here is not a very clear one. The assumptions made by Inside Housing in their survey could be very misleading indeed. However, the plan to include housing association properties in the new Right to Buy scheme has received a lot criticism from across the political divide.
“Many are upset that some housing association tenants will make a hefty profit on what was intended to be a long-term solution for young families priced out of their own town or village. This seems a short-sighted use of this valuable social resource.
“Landowners who sold development land to housing associations in order to benefit the young in their local communities must be feeling very betrayed about the extension of Right to Buy.”
Original Article: www.lettingagenttoday.co.uk/breaking-news
(01223) 868 570
As a not-for-profit agency, every year we donate the previous year’s surplus to charities chosen by our landlord clients and our staff.