Calls to ban 'right to buy' scheme
There should be a temporary ban on tenants' 'right to buy', according to a leading campaign group.
Twice as many affordable homes were sold off than were built over the last eight years, it has been revealed.
More than 440,000 council and housing association homes were sold off under the 'right to buy' scheme between 1999 and 2007, but only 205,123 new affordable homes have been built during the same period.
Between 2004 and 2007, Bristol City Council sold 681 homes to tenants, Bath and North East Somerset Council (BANES) sold 180, North Somerset 108 and South Gloucestershire 108.
The National Housing Federation said the mass sell-off of council houses at heavily discounted rates was no longer sustainable.
The overall number of social homes – both council and housing association properties – fell from 4.3 million homes in 1999 to 3.99 million last year.
But over the same period, the number of people on waiting lists rocketed 1.03 million to 1.67 million in 2007 as demand for affordable homes soared.
The number of people on waiting lists for an affordable home throughout England is predicted to hit five million within two years, while a wave of repossessions and rising unemployment could further add to the crisis.
But the credit crunch has seen house-building virtually grind to a halt, prompting fears that there will simply not be enough social homes available to meet demand.
Simon Nunn, the National Housing Federation's Head of South Region, said: "For those who have been able to take advantage of the big discounts available to buy their home, the 'right to buy' policy has unquestionably been a massive success.
"However, one in 14 households in the South West is currently stuck on waiting lists. The mass sell-off of affordable housing has deprived them – and future generations – of a home.
"Throughout the region and the rest of England, there is a backdrop of rocketing waiting list numbers, rising repossessions and unemployment.
"The country cannot afford to sell off any more affordable homes on the cheap.
"Social housing needs to be treated as a scarce resource and protected. The time has come when we must consider suspending the 'right to buy' for all new tenants in order to ease the dire housing crisis and allow the affordable housing stock to recover."
Comments
by Richard, Bristol
Monday, December 01 2008, 10:41AM
“This is nonsense, by tenants buying these homes the sellers can buy new land or exisiting opportunities at auction and progress with thier mission to help people get started in life with affordable homes.
If a council house sells today for £80k then that money should be kept in a separate accounts until say 10 houses are sold and then the development team look to buy a new site and build 30 new homes with the money. This will work but I would image the money is spent elsewhere.
If a family live in a council house and they are not able to buy then the likelihood of them leaving a council property is very unlikely; resulting in fewer council homes, continued expense to the council and far greater issues in decades to come.
Housing associations are in exactly the same situation. Please sell as many homes as possible and fulfil your social and economic policies which are ultimately to grow people out of poverty in our society. Build new homes as fast and efficiently as possible.
After the second world war 65% of all homes in Britain were owned by the state and by selling these homes we have all benefitted. The tenants by being able to progress in life and offering their familes a better future; people who were selling private homes had interest by ex council tanants who now had enough money to make an offer etc. The machine grew from 1980 and now there's far fewer worn out council homes and a society of affluent people.
The next stage is to stop councils from selling land to building companies and instead build at cost plus £5k for infrastructure and sell these to key workers, housing associations and low income families i.e. Build 300 new homes on an existing prefab council site of 100 homes. Sell these off plan through state owned nationalised banks for £85k each. £75k will pay for the property including labour and £10k will cover infrastructure costs.
Existing building companies can tender to build these and profit from the labour costs, currently keeping 1000s of people in work and without the concern of needing to access funds in a credit crunch to cater for the whole job.
The funds will be collected off plans through the nationised banks and all construction will come from this pot, the banks ensuring the best rate of interest at all times.
The banks will ultimetely be ensuring £85k properties with a market value of £220k so it helps them in difficult times as well and hense everyone will benefit.”