Letting housing association tenants buy their homes at a discount will be disastrous for rural communities, according to a leading academic.
Government plans to extend the “right to buy” will make an existing housing shortage worse, said Professor Mark Shucksmith, Director of the Newcastle University Institute for Social Renewal.
And the problem will be particularly bad in rural areas – where house prices are highest, he said.
But the policy was welcomed by North East MP Anne-Marie Trevelyan, Conservative MP for Berwick, who said funds raised from the sell-off would be used to allow councils and housing associations to build more homes.
It comes as a senior civil servant criticised the policy, which was one of the Conservative Party’s flagship manifesto promises during the general election campaign.
The Government is to extend the right to buy their home at a discount, which currently applies to council tenants, to 1.3 million housing association tenants.
But Lord Kerslake, the former head of the civil service who was the most senior official at the Department of Communities and Local Government until February, has warned that the plan will do nothing to address the housing shortage.
He said: “I think it’s wrong in principle and wrong in practice, and it won’t help tackle the urgent need to build more housing and more affordable housing in this country.”
Under the Conservative plans, 1.3 million tenants in housing association homes in England will be able to buy their properties at discounts of £77,000, or up to £104,000 in London.
Ministers say housing associations will be compensated with money raised by forcing local authorities to sell off their most expensive housing stock as it becomes vacant, ensuring that the affordable properties which are sold are replaced.
However the proposals have been widely criticised by housing associations, with many threatening to sue the Government if they are forced to sell.
Prof Shucksmith said:
“There is already a shortage of affordable housing, especially in rural areas where there is little social housing.
“Rural house prices are on average 26 per cent higher than in urban areas, and the ratio of house prices to local earnings is even worse.
“Disposing of housing association stock, at great cost to the taxpayer, will make the impact on rural communities much more serious.
“We are already seeing those on low and medium incomes, and especially young people, priced out of small towns and villages across the UK. With housing association properties sold off, and unlikely to be replaced in any substantial quantities, the wealth divide in rural communities will deepen even further.”
And he said the policy would hurt employers, by driving the staff they need out of rural areas.
“With rural areas becoming increasingly socially exclusive, local businesses – from farms and shops to accountants and software developers – will find it even harder to attract the young, skilled, ambitious people they need.”
Source – Newcastle Evening Chronicle, 03 Jun 2015