Angela Rayner considers abolishing Right to Buy – despite personal gain

Angela Rayner considers abolishing Right to Buy – despite personal gain

0:05 AM, 4th September 2024, About a month ago 17

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Angela Rayner is reportedly considering abolishing the controversial Right to Buy scheme, just months after it was revealed she personally profited from it.

The Daily Telegraph has learned that the deputy Prime Minister and housing secretary, who sold her former council home in Stockport for a profit of £48,500 after purchasing it at a discounted rate through Right to Buy, is now weighing the option of ending the scheme for new council homes.

In Parliament, Ms Rayner also refused to rule out scrapping the single person discount of 25% for council tax.

That could affect all single renters from young people to pensioners who have also lost their winter fuel payment of £300 per year.

She also told MPs that there are no plans for increasing council tax in England.

Decision to end Right to Buy

The Telegraph says that the decision to end Right to Buy comes as more than 100 local authorities called for the scheme to be scrapped.

A report commissioned by Southwark Council found that the scheme has cost councils £2.2 billion and exacerbated housing shortages.

Right to Buy was introduced by Margaret Thatcher which allows council tenants to buy their homes at a discount of up to 70%.

While it enabled lots of council tenants to become homeowners, it has also lead to a drop in council housing stock.

Buy her former council house

Ms Rayner used a 25% discount to buy her former council house in Stockport for £79,000 via the Right to Buy scheme in 2007.

Controversially, she later sold it and pocketed £48,500.

According to government data, the Right to Buy scheme has seen 26,000 homes being sold on average every year.

Discounts can be as high as £75,000 outside of London, and £100,000 in London.

The Telegraph reports that the Ministry of Housing and Local Government, has refused to rule out abolishing Right to Buy for newly built council homes in the October Budget.

A spokesman said: “We are facing the most acute housing crisis in living memory and that is why we are working at pace to reverse the continued decline in the number of social rent homes.”

People could lose more than £600

An analysis by the i newspaper reveals that in some areas of England, single people could lose more than £600 if the council tax discount is binned.

By losing the 25% discount, single parents and pensioners who are widowed will be among those to lose out.

When questioned in the Commons on Monday, Ms Rayner would not commit to maintaining it.

That’s when Kemi Badenoch, the shadow communities and local secretary, told MPs: “It’s been reported that the Secretary of State is being lobbied to increase council tax and remove discounts like the single occupant discount.

“Will she take this opportunity to reassure the House that the Government has no plans to increase council tax as they assured us before the election?”

Ms Rayner replied: “Yes.”


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Jaskk

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8:07 AM, 4th September 2024, About a month ago

Right to buy was always a very short sighted idea however well meaning its intention. Council housing belongs to the taxpayer and is for the use of those that cannot afford to buy or rent on the open market. I’ve lost count of the amount of people that have abused it to simply enrich themselves. This country needs more long term thinking.

Reluctant Landlord

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9:30 AM, 4th September 2024, About a month ago

the reality is the country can't afford the right to buy scheme, it's selling off PUBLIC assets for private gain. Yes it needs to be scrapped. Those that have resided for years in council properties will be paying very low rent, so it doesn't equate that the state should then subsidise their purchase too. Council property was built on taxpayers money to be able to rent to those who cannot afford to rent privately or buy privately.

The push should be the state building more social homes no selling off the current assets.

Ross Tulloch

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9:46 AM, 4th September 2024, About a month ago

Giving people a large discount because they are poor enough to live in a council property but rich enough to afford to take it on, and profit later all at the expense of the taxpayer is crazy

Bernard Mealing

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9:47 AM, 4th September 2024, About a month ago

Did this lady sell to benefit from what she is now thinking of doing. Very suspect

RichDad

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10:27 AM, 4th September 2024, About a month ago

Stopping RTB for council housing should also extend to killing the idea of tenants having a legal right to buy from their private landlords at a discount.

Jo Westlake

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10:34 AM, 4th September 2024, About a month ago

When RTB was first introduced Councils had huge numbers of deteriorating houses they couldn't afford to maintain. In the 1980s these weren't nice modern houses, but often houses with 40 or 50 years of hard use. Certainly in the 1950s it wasn't unusual for families to have in excess of 10 children in those 2 and 3 bedroom Council houses. Bedroom entitlement hadn't been invented back then.
The discount was often less than the cost of the necessary modernization works. My Council RTB house in 1987 had dry rot throughout, antiquated night storage heaters, single glazed sash windows, very few electric sockets, no insulation, etc. The only bit that didn't need replacing was the roof.
A great many Council houses were in a similar state (maybe not dry rot).

The RTB discounts have changed a few times since it was first introduced so there is no reason not to change it again. At one point the maximum discount was £30K.

Due to the government rent increase formula for Social Housing the gap between Social and PRS rents has widened considerably in recent years. This has left Social Housing providers in a very precarious financial position (especially now Awaabs law exists). There was an article a few days ago about one Council selling any Social house that needs more than £10K of work. Councils don't get much done for £10K, so in most cases this would be relatively minor work. Why can't these houses be offered to existing Social tenants or people on the housing list who can demonstrate the skills or budget to do the necessary work as a new type of buying scheme? It seems counterintuitive that the people who have been enjoying half price rent for the longest are entitled to the biggest discount if they want to buy their Council house. Especially as the condition of the property isn't especially taken into account.

I firmly believe a RTB of some sort is good for both tenants and Social Housing providers (off loading expensive to maintain stock) but the discounts should be far lower than they currently are. Enough to make buying a realistic possibility but not the huge bung it currently is.

Stella

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10:40 AM, 4th September 2024, About a month ago

Does Ms Rayner want to compel us to sell our property at a discount to our tenants as suggested by Ranjan in his latest video while she gets rid of the the discounts given to Council tenants?

The discounts given to tenants in council houses should stop.

Ms Rayner of course has already had her cake and she has eaten it!

Paul Edwards

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11:47 AM, 4th September 2024, About a month ago

So it states
An analysis by the i newspaper reveals that in some areas of England, single people could lose more than £600 if the council tax discount is binned.. Well had my father still be alive he would loose £875 if they scrapped the 25% discount. This is the problem surveys are never based on the south east prices and the reality of living in the south. Our prices are a lot higher all round

Retired GasMan

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11:55 AM, 4th September 2024, About a month ago

Reply to the comment left by Stella at 04/09/2024 - 10:40
Thanks for highlighting this, I know it was on the cards some years ago but this is the first I’ve heard of it since Corbyns GE failed attempt.

I’ve not watched the video fully but I’d be interested to know if they intend to charge CGT on the sale if this is forced on us (rhetorical question)

Retired GasMan

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12:05 PM, 4th September 2024, About a month ago

Reply to the comment left by Stella at 04/09/2024 - 10:40
Do you have a credible link for this please? I can’t find anything online

Thanks

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