Labour slammed as another minister cashes in on Right to Buy scheme
2 months ago | 7 comments
Right to Buy sales soar past two million as housing crisis continues
12:01 AM, 14th August 2026, 3 weeks ago
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Homes sold under Right to Buy have soared in the past year, despite government proposal for reforms.
Government data reveals 14,275 council homes were sold under the Right to Buy scheme in England during 2025-26, an increase of 90% compared to 2024-25.
Under the new reforms, the minimum eligibility period would increase from three to 10 years before tenants can apply to buy their home.
Discount rules would also be amended, with discounts starting at 5% of the property value and increasing by 1% each year up to a maximum of 15% of the property value or the cash cap, whichever is lower.
Dilemma for the housing market
The flagship policy, introduced by Prime Minister Margaret Thatcher in the 1980s, was designed to give council tenants in England and Wales the right to purchase their homes from local authorities.
Since the start of Right to Buy, there have been more than two million sales to tenants.
Rachel Springall, finance Expert at Moneyfactscompare.co.uk, explains the huge amount homes sold does create a challenge for the housing market.
She said: “The short supply of affordable housing makes the Right to Buy scheme highly attractive for aspiring homeowners, giving them a chance to buy the home they already live in at a discounted price.
“More than two million homes have now been sold under the scheme since it was launched in 1980 under the Housing Act, showing its popularity among those who perhaps could not afford a property for sale on the open market.
“However, the amount of homes sold under the scheme does create a dilemma for the wider housing market, as social housing stock needs to be replaced.
“Tackling the provision of social housing was part of the first official speech from the new Prime Minister, Andy Burnham, stating “we will build more council homes”. While this comment is positive, the scale and pace to achieve significant numbers of new dwellings has to be bold to cater to high demand.
“A study from the Resolution Foundation revealed that 1.3 million households are on local authority housing waiting lists, the highest number since 2014, plus, there is a near-record high of households living in temporary accommodation.”
Tenants forced to rent privately
Ms Springall added despite government proposals, tenants could still be driven to the private rented sector.
She said: “Overall, the planned reforms and limited housing stock will still mean some tenants are forced to rent privately if they need to settle at a specific location for work or family reasons.
“Alongside this, those who have saved over recent years and are now finally ready to get a mortgage will be disappointed that mortgage rates have been climbing amid prolonged unrest in the Middle East, adding around £215 a year in mortgage repayments in just one month of volatility. Prospective buyers will be keen to see what might be revealed in the Autumn Budget which could help their homeownership dreams become reality.
“While the rumour mill may churn over the next 12 weeks, Andy Burnham has recently ‘ruled out’ scrapping a Stamp Duty reform in this year’s Budget.”
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Member Since January 2015 - Comments: 1574 - Articles: 1
10:04 AM, 14th August 2026, About 3 weeks ago
Why are Labour still allowing Right to Buy?
Should have been one of the first actions they should have taken – removing it.
Member Since September 2018 - Comments: 3713 - Articles: 5
11:17 AM, 14th August 2026, About 3 weeks ago
with Parliament in recess a lot of the fluff Burnham is putting out cannot be challenged nor pushed for more detail. We are in a vacuum where Chinese whispers and clap trap is the order of the day. Snippets of ‘what might be’ but nothing concrete.
Constipation is the universal result.
Until Parliament is back and then No 10 is put under pre-budget pressure the economy will continue to stagnate. 0.4% is not growth. It’s a stat indicating total failure to understand and get a grip.
Irrespective of the Gulf issue there is so much more the gvt could do. They choose not to.
nly thing coming out of No 10
Member Since September 2018 - Comments: 3713 - Articles: 5
11:18 AM, 14th August 2026, About 3 weeks ago
Reply to the comment left by Judith Wordsworth at 14/08/2026 – 10:04
but that upsets their voting base….
Member Since May 2015 - Comments: 2302 - Articles: 2
11:34 AM, 14th August 2026, About 3 weeks ago
We need total renewable energy in the UK. The government could start by restoring the funding for Welsh lagoons, funding that was withdrawn at the eleventh hour. Invest in the national grid so that offshore wind power can be delivered to customers. In a period of low growth we need to concentrate on infrastructure projects that will lead to independence..
Member Since February 2026 - Comments: 2
1:57 PM, 14th August 2026, About 3 weeks ago
Reply to the comment left by Judith Wordsworth at 14/08/2026 – 10:04
Right to Buy was one of the Thatcher government’s best ideas. Improved the lot of millions, improved whole areas as former tenants improved their properties and eventually sold on mixing people of different social classes. All at no cost to the taxpayer once you take into account the rent the buyers had been paying paid off debt on original loans to build the properties.
Member Since February 2017 - Comments: 51
10:09 AM, 15th August 2026, About 3 weeks ago
The Labour Government announced changes to RTB on 30 October 2024. The changes took effect on 21 November 2024, giving a very small timescale for tenants to put in a RTB application.
Obviously thousands did and that led to the increased sales in 2025. This is a one off phenomenon and wont be repeated.
Previous governments changed the RTB legislation over the years, making it too easy and too generous, particularly in cheaper areas. Getting a mortgage for council housing in expensive areas would have been a challenge unless there were 2 or 3 wages coming in.
The new RTB scheme effectively cuts off the South and expensive areas from RTB applications except for cheap flats in those areas.
Presumably tenants will still be able to buy in cheaper areas due to much lower prices and ability to get mortgages.
Member Since February 2026 - Comments: 2
12:30 PM, 15th August 2026, About 3 weeks ago
Reply to the comment left by KSE at 15/08/2026 – 10:09
Largely agree. There’s a case for saying initial discount was excessive but the principle underlying RTB is right, returning to tenants the equity they built up in the property paying the state rent.
I don’t see that as a subsidy. What I do object to is subsidising badly run Housing Associations. Take the one where I live. It has allowed 31 old persons flats to fall
into disrepair to the point where it evacuated its elderly tenants, refusing to say what its intentions for the building are. It has now persuaded our idiot council to gift it a site to build 39 similar flats, the Counci paying it half a million pounds to do so.
On top of that Homes England paid two hundred thousand to reach the Planning stage and will put up millions more as an interest free loan from the taxpayer.
I can’t even get tax relief on my borrowing and have to pay Council Tax on any voids. How about a level playing field?
Member Since September 2013 - Comments: 16
3:30 PM, 15th August 2026, About 3 weeks ago
Reply to the comment left by john rowe at 14/08/2026 – 13:57
But if you sell the orchard off cheap, you can no long pick, sell or eat the apples, unless of course you buy/grow another….