A stark warning setting out “grave concerns” about extending the right-to-buy to housing association tenants has been issued to Prime Minister David Cameron.
Bill Midgley, chairman of Newcastle-based social housing provider Leazes Homes, accuses the politician of using “the sanctity of a person’s home” as an “election bargaining chip” after the pledge was revealed in the Conservative Party Manifesto last week.
Mr Midgley echoes fears voiced by others in the sector as he outlines how a policy that forces associations to sell off their assets would mean they have less borrowing power.
Because of this, he says, associations could not build more homes for some of the most vulnerable in society, including “older people, those with learning disabilities and those with mental health problems.”
The letter reads:
“If organisations like us are unable to secure loan funding for supported housing properties then the potential damage is unthinkable. It is essential that such accommodation can be provided by the affordable housing sector.”
The Tories say the plan opens the possibility of home ownership up to thousands of people who may otherwise be locked out of the market.
The National Housing Federation estimates there are 19,620 people in the North East who would be eligible for a mortgage under the plans and that it will cost £808m to implement the policy.
But Mr Midgley fears poor people may be forced to pay higher rents in the private sector.
Signing off the letter to Mr Cameron, he said:
“I urge you to reconsider this proposal. We have a duty as a society to provide our citizens with good-quality, affordable housing, but the sanctity of a person’s home is not something to be used as a bargaining chip to secure election votes.”
Guy Opperman, the Conservative candidate for Hexham defended the policy –
“We want more people who work hard and save up to be able to enjoy the security of owning their own home.
“Right now it is too difficult for housing association tenants to buy their own home. Until now the Right to Buy has only been available to tenants in local authority properties. This means there are around 500,000 housing association tenants who have no right to buy their home.
“The Right to Buy scheme has already helped around two million families to realise their dream of owning a home. By now extending the Right to Buy to housing associations tenants, we will help more people who want to move on and up the housing ladder.
“Our proposals will increase house building, increase home ownership and reduce waiting lists. Right to Buy improves social mobility and builds mixed communities.
“It gives something back to families who worked hard, paid their rent and played by the rules and gives people a sense of pride and ownership not just in their home, but in their street and neighbourhood.”
The Conservatives have pledged to improve their help-to-buy scheme and have also committed to 200,000 new starter homes in their manifesto.
Similarly Labour says it will build 200,000 new homes by 2020 and that private sector rent would be capped should Ed Miliband be Prime Minister.
The Lib Dems have pledged 300,000 homes a year, and ten garden cities as well as a rent-to-buy ownership scheme.
UKIP plan to build one million homes on brownfield sites by 2020, and Nigel Farage wants to restrict right-to-buy and help-to-buy schemes to British nationals.
Should the Greens win power they will regulate private sector rent and build 500,000 social homes.
Source – Newcastle Evening Chronicle, 20 Apr 2015