Labour Considers Axing Right to Buy Amid Housing Crisis Concerns

Angela Rayner, the UK's deputy prime minister and housing secretary, is contemplating significant changes to the Right to Buy scheme, a policy that has been a cornerstone of British housing for over four decades. This consideration comes in the wake of mounting criticism from local authorities regarding the scheme's impact on council housing stock and affordability.

A report commissioned by Southwark council, representing the views of more than 100 local authorities, has called for the abolition of Right to Buy for new council homes. The report highlights a £2.2 billion deficit in local authority accounts attributed to the scheme, exacerbating the ongoing housing crisis in Britain.

The Right to Buy scheme, introduced by Margaret Thatcher's government in 1980, has facilitated the sale of over 2 million council homes since its inception. While it has been credited with increasing home ownership rates, critics argue that it has significantly reduced the availability of social housing and contributed to housing inequality.

Rayner's own history with the scheme has come under scrutiny. In 2007, she purchased her former council house in Stockport for £79,000, benefiting from a 25% discount through Right to Buy. The subsequent sale of this property, resulting in a £48,500 profit, has raised questions about potential conflicts of interest in her current role.

The Labour government is expected to announce a comprehensive plan to boost council housing in its first Budget on October 30, 2024. This plan may include modifications to the Right to Buy scheme, potentially offering protections for newly built council homes.

"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."

The current state of council housing sales, primarily through Right to Buy, averages 26,000 units annually. The scheme offers discounts of up to £75,000 outside London and £100,000 within the capital, with a maximum cap of £136,400 in London based on the duration of tenancy.

Critics, including the Housing Forum, have pointed out instances of scheme abuse. These include properties being purchased with gifts or loans from family members, or after tenants have claimed benefits while in rental arrears. Some cases have even seen council homes being let out on the private market shortly after purchase.

As the debate continues, the government faces the challenge of balancing the desire for increased home ownership with the pressing need for affordable social housing. The outcome of this deliberation could significantly shape the future of Britain's housing landscape.