What's all the noise about Right to Buy?

What's all the noise about Right to Buy?

There has been a lot of negative press about the government's proposed extension to the Right to Buy scheme, with detractors stating that it's already reducing council housing and encouraging housing fraud in certain areas.

The intention of Right to Buy was to allow council tenants to purchase their home at a discount. It applies to most council tenants, as long as it’s their only or main home, is self-contained and they are a secure tenant that’s had a public sector landlord for three years.

However, a proposed change to the legislation, which is part of the Housing and Planning Bill, would also give housing association tenants the opportunity to buy their own home at discounts previously only open to council tenants. This could mean a discount of up to £103,900 in London and £77,900 in the rest of the country.

As compensation to housing associations for having to sell their properties at prices below market value, the Government has promised that a replacement home will be built for every housing association home sold under the scheme. Detractors say that this will put more pressure on councils for housing, and that the properties to be built aren’t necessarily going to be like-for-like.


Ultimately though, the aim of this is to get more people onto the property ladder, and for the wider market, that can only be a good thing. The number of first-time buyers is expected to rise significantly this year, partly thanks to schemes like this, and that’s creating a lot of movement in the market, from the bottom up.

At Together we provide funding for Right to Buy mortgages, based on both capital repayment and interest-only, with many income sources accepted; including employed, self-employed, DWP benefits and pensions. Loan amounts range from £3k to £200k, with loan-to-values of up to 60%, and we’ve seen marked growth in funding for Right to Buy properties in the last quarter.

Following on from my last blog on property hotspots, it’s no surprise to learn that London tops our table for Right to Buy loans in the last 12 months, accounting for 20% of all funding. That’s followed by the thriving Yorkshire and Humber region, and the North West.

The Humber region is enjoying an exciting period of growth, with Hull preparing to be crowned the City of Culture in 2017 and a significant increase in the number of businesses in the region, with the Chancellor proclaiming last year that Yorkshire had created more jobs than France. House prices went up by 3.3% and this growth looks set to continue, so it’s perhaps unsurprising to see the Right to Buy scheme proving successful in this area.

For property professionals and investors, incentives to help drive more people into the market will stimulate wider demand for properties, whilst for previous council or housing association tenants, this is the opportunity of a lifetime to become a home-owner.

So I’ll ignore the naysayers for now, as I believe schemes like Right to Buy can be a positive force for the market and I’ll be eagerly watching to see how this develops under the proposed changes.

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Latest Comments

Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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