Mortgages  

Right-to-Buy creates 40,000 new homeowners

Right-to-Buy creates 40,000 new homeowners

Right-to-Buy has created nearly 40,000 new homeowners in the last three years, figures released by the government show.

Right-to-Buy was introduced in 1980 giving council tenants the opportunity to buy their homes at a discount – for some this was as much as 50 per cent of the market value.

Ministers said the latest figure is “further evidence” of how government-led efforts to support hard-working aspiring homeowners are working.

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The figures also show that 3,644 new starts and acquisitions have been made since Right-to-Buy was reinvigorated in 2012, when the coalition government then increased the discount given.

This means that the 3,054 additional homes sold in the first year of the scheme are already being replaced on a one-for-one basis nationally.

Housing Minister Brandon Lewis said: “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.

“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.”

Since the reinvigoration of the Right-to-Buy scheme, nearly £964m in sales receipts are being re-invested into building new homes; levering a further £2.2bn of investment over the next three years.

This means that in total, over £3.2bn will be raised to invest in affordable house building as a result of the as a result of Right-to-Buy. In the three months to June, 2,779 households bought their homes under Right-to-Buy.

Local authorities received approximately £223m from Right-to-Buy sales, 5 per cent higher than the £212m in the same quarter of 2014 to 2015.

ruth.gillbe@ft.com