[KF] Housing Minister Grant Shapps has published new proposals that will significantly increase the discounts available under the Right to Buy scheme, making it easier for some of the two million social tenants in England to buy the home they live in.
Mr Shapps said the restrictions on discounts over the past few years have made Right to Buy meaningless in many parts of the country, with fewer than 3,700 sales last year compared to a peak of 84,000 less than 10 years ago.
Proposals published for consultation will see the cash caps under Right to Buy increased to £50,000 across England. This will mean that someone in the West Midlands who had been a tenant for eight years on an household income of £20,000 could buy their £90,000 flat with a discount of £50,000, compared to £26,000 previously - effectively doubling their discount.
In London, a tenant for five years buying a flat worth £160,000 would also receive a discount of £50,000 - more than three times the previous cap of £16,000.
Housing association tenants with a Preserved Right to Buy - because their home was part of a housing stock transfer from a local authority - will also benefit from the enhanced offer.
Proposals will now be discussed with key partners including landlords, lenders and tenant organisations. This will include ways to ensure tenants are fully informed about the new opportunities, and landlords are fully geared up to respond and support tenants' ambition for home ownership.
The consultation will also consider the different ways the receipts from additional Right to Buy sales could be used to deliver new affordable rent homes on a one-to one basis. This will include options where councils keep the receipts and deliver the homes, and options where the Government collects the receipts and allocates funds to councils who offer the best value for money.
Revived RTB Offers Substantial Increases in Discounts