Extending the right-to-buy to housing association tenants[1] could make London’s housing crisis worse, experts warned today.
Speaking at a London Assembly Housing Committee meeting today, Lord [Bob] Kerslake – Chair of the respected Peabody housing association, and until recently the government’s housing chief[2] - warned that London will not be able to solve its housing crisis if it in effect subsidises right-to-buy sales in other areas of the country.
“This policy as currently designed will see a very substantial outflow of funding from London to the rest of the country”, Lord Kerslake said.
The Committee also heard from Cllr James Murray of Islington council, who warned that the requirement to sell more expensive homes in London could scupper councils’ plans to build affordable homes.
“The real threat of this is the fact that it could end our new build programme”, he said.
Tom Copley AM, Chair of the Housing Committee, said:
“Most people want to be able to own their own home – but as we heard from experts across the board today, there is a risk that this policy might make London’s housing crisis even worse.
“As the government develops its plans it must ensure it does not penalise councils and housing associations: they are vital in boosting London’s housing supply - especially affordable homes.
“London has its own affordable housing crisis and should not be used as a cash-cow for funding right-to-buy in other parts of the country.”
Notes for Editors:
In the Queen’s Speech, the government set out its proposals on expanding ‘right to buy’ to housing association tenants – funded via the sale of expensive council homes.
Lord [Bob] Kerslake was appointed Permanent Secretary for the Department for Communities and Local Government (DCLG) until February this year. He was also Head of the Civil Service from January 2012 to September 2014.
A webcast from the meeting is available here.
Tom Copley AM, Chair of the Housing Committee is available for interview. See contact details below.
As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
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