New figures published by the Government indicate that the Right to Buy programme in Britain has created almost 40,000 new homeowners during the last three years.
Housing Minister Brandon Lewis said this total is more evidence of how Government initiatives aimed at assisting would-be homeowners are working. Mr Lewis noted that there have been 3,644 new starts and acquisitions since the Right to Buy scheme was revitalised in 2012.
Positivity
Lewis explained that this means the 3,054 homes sold in the first year of the scheme are already being replaced on a one-for-one basis.
‘For years, the discounts available under the Right to Buy were left to dwindle, denying thousands of people the opportunity to own their own home, ‘Lewis noted. He feels that, ‘this reinvigorated scheme has turned that around and means nearly 40,000 people have been able to buy the home they love, many of whom might otherwise never have had the chance to become homeowners. On top of that, it’s getting homes built, with councils replacing the additional homes sold on a one for one basis.’[1]
In addition, data shows that since the reinvigoration of the Right to Buy scheme, almost £964m in sales has been re-invested into the construction of new homes. A further £2.2bn is to be invested in the next three years. This means that in total, in excess of £3.2bn will be raised to invest in affordable housing building as a result of Right to Buy.[1]
Success
In the three months to June this year, 2,779 households purchased property under the Right to Buy scheme. As a result, local authorities received £223m from these sales, 5% higher than the £212 in the same period during 2014.
Mr Lewis also pointed that since 2010 the Government has launched a range of measures to assist aspiring homeowners to purchase their own home. Overall, since the beginning of 2010, 232,000 households have been helped to take their first step onto the property ladder through the Help to Buy and Right to Buy schemes.
What’s more, the Government has promised to build 200,000 new starter homes, available to first-time buyers under the age of 40 at a 20% discount. Additionally, a new Help to Buy ISA will be introduced to assist a further number of would-be homeowners to save up for a deposit.
[1] http://www.propertywire.com/news/europe/uk-right-buy-programme-2015092111002.html