Significant modifications to England’s Right to Buy scheme have been recommended by Deputy Prime Minister Angela Rayner, who has suggested that the long-standing policy should not be applied to newly constructed council homes. To address the nation’s growing homelessness epidemic, Rayner laid out strategies to keep these properties from escaping the system.
What Is the History of the Right to Buy Scheme?
Margaret Thatcher’s Conservative government launched the Right to Buy program in 1980, which allowed social housing renters to buy their homes at a reduced price. The policy, first credited with increasing homeownership, has sold more than two million homes. However, because social housing stock has not been sufficiently restored, the program has more recently been held accountable for escalating homelessness.
How Is Labour Committed to Tackling Homelessness?
Angela Rayner called homelessness in the UK a “catastrophic emergency,” emphasising how urgent it is to address. To help rough sleepers get through the winter, the government has pledged to invest a significant £10 million. Additionally, Rayner reiterated Labour’s commitment to constructing the most social and council housing since World War Two.
Rayner stated, “We don’t want those recently constructed properties to leave the system.” “In order to prevent the loss of those homes and that stock, we will be imposing restrictions on them.”
A clause in the government’s proposal would prohibit the sale of recently built social housing under the Right to Buy program. The government’s housing policy has changed due to ministers’ pledge to consult later this year.
What Are the Current Statistics on Homelessness?
Rayner’s declaration coincides with concerning homelessness data. According to data, a record 4,780 persons were observed sleeping on London’s streets during the three months from June to September of this year. This number is the largest in recent memory, indicating the severity of the housing crisis.
Speaking to those who had recently been lifted off the streets, the Deputy Prime Minister visited a rough sleepers’ hostel in south London. One of them, 58-year-old former chef Stephen Richards, talked about his experience of homelessness. He explained how a family conflict caused him to lose his house, and the exorbitant rental prices made it impossible for him to find another residence.
Richards said, “A lodger was a room in someone’s house years ago.” “They are now referred to as en-suite [rooms].” The monthly cost of a bedroom is £1,200. Everything costs too much.
What Long-Term Solutions Are Being Proposed?
The government has committed a total of £233 million in the Budget to address homelessness in all sectors, in addition to the £10 million set aside for support for rough sleepers. By 2025–2026, this raises the whole investment to about £1 billion. Rayner did concede, though, that homelessness is a pervasive issue that would take time to resolve.
Rayner emphasised the necessity of a coordinated approach to the situation by stating that “tackling homelessness will require different government departments to work together.”
Reducing the number of persons who become homeless in the first place is one of the most critical stages in combating homelessness. The private rental sector accounts for a sizable portion of individuals impacted, especially those evicted under Section 21 of the Housing Act.
How Will the Renters' Rights Bill Help?
The government’s Renters’ Rights Bill is critical in preventing homelessness. It seeks to stop Section 21 evictions. This measure will eliminate the provision that permits landlords to dismiss tenants without giving a reason—a practice that has been a significant contributor to homelessness.
The head of St. Mungo’s homeless organisation, Emma Haddad, commended the government’s will to proceed with this legislation. We are aware that Section 21 evictions are a significant factor in the majority of homeless people leaving the private rental market. It will be pretty beneficial,” Haddad stated.
What Changes Are Being Made to the Right to Buy Scheme?
The Conservative-led coalition government expanded the incentives offered to tenants purchasing their houses when it revived the Right to Buy program in 2012. The maximum discount is now £102,400 in England, with higher restrictions of £136,400 in London. Depending on the area, this discount will drop to between £16,000 and £38,000 under Labour’s policies.
The government is altering how council house sales earnings are handled and cutting discounts. Previously, local governments were required to provide the Treasury with a percentage of the sale price. Thanks to new regulations, councils will be able to retain all the money they make from these sales.
Why Has the Right to Buy Scheme Ended in Other Regions?
The Right to Buy policy was terminated in Scotland in 2016, and in Wales, the Welsh government ended the program in 2019. With an emphasis on ensuring that newly constructed social housing stays in the public sector and is not auctioned off under the contentious plan, the Labour government in England is now considering doing the same.
What Is the Future of Housing Policy in England?
Given the UK’s ongoing struggles with homelessness and the depletion of affordable housing stock, Rayner’s suggested modifications to the Right to Buy program mark a substantial change in governmental policy. The path forward will undoubtedly necessitate sustained investment, legislative changes, and a concerted effort across several government ministries, despite the optimism of some experts and campaigners that the reforms will help ease the problem.
Angela Rayner once said, “We’re not losing that stock.” We are dedicated to addressing the underlying causes of homelessness.
