The London Assembly today said proposals to extend Right to Buy to housing association tenants will only work, if the cash from the sale stays in London. It also stated that the policy could undermine other efforts to increase the supply of new affordable homes across the capital.
Stephen Knight AM, who proposed the motion said:
“Despite costing billions of pounds to implement, extending the Right to Buy to housing association tenants will not help a single family living in overcrowded housing, or help to remove one person living in emergency accommodation. The policy also offers no help to anyone struggling with exorbitant private rents. If anything the policy will just deepen all these existing problems by shrinking the stock of affordable homes and will reduce the supply of new affordable homes.
“London needs investment in increasing the number of affordable homes, not an expensive policy that will undermine the ability of housing associations and local councils to provide new affordable homes."
Tom Copley AM, who seconded the motion said:
“The Government promised that for every home sold under Right to Buy, a new home would be built but it is abundantly clear that is not the case. The capital already has a deep and growing housing crisis with hundreds of thousands of families on waiting lists for council housing. The answer is not to sell off yet more of our stock at knock down prices without a clear and proper plan in place to replace them.”
The full text of the Motion is:
“This Assembly notes the Mayor’s recent statement that the proposal to extend the Right to Buy to housing associations’ tenants ‘will only work for London if it delivers more homes - and more low-cost homes – [and] makes sure that the cash from the sale of any council homes stays firmly in London and is used to build more homes for Londoners’ adding that he did not want to see London’s ‘great mixture of socioeconomic groups’ displaced as a result of the policy.[2]
This Assembly further notes that the rate of replacement for council homes sold under the Right to Buy scheme since the the maximum discount was increased in 2012 has been closer to one in ten, despite a commitment to ensure that the receipts from every additional home sold would be used to fund its replacement on a one for one basis.
This Assembly is furthered concerned that the way the policy is to be funded – through forcing local councils to sell off their most valuable properties – may result in many new council properties being sold off almost as soon as they are built, instead of being let to local residents in housing need.
This Assembly believes that the proposal to extend the Right to Buy to housing associations’ tenants in London risks undermining other efforts to increase the supply of new affordable homes across the capital.
This Assembly is concerned by the Mayor’s failure to respond to its motion – agreed at Mayor’s Question Time on 21 May 2015 – calling on him to commission an assessment of the implications of an extended Right to Buy for housing associations in London.
This Assembly therefore calls on the Mayor to provide an oral update to the Assembly at the earliest opportunity confirming whether or not he intends to commission an assessment of the implications of extending Right to Buy to Housing Association tenants in London, and if not, to provide a list of reasons for his decision. “
Notes to editors:
The motion was agreed by 13 votes for, to 1 against at a meeting of the full Assembly today.
See transcript of Mayor speaking in response to MQ2015/1210 [‘Right to buy’ for housing association tenants in London]: /moderngov/documents/s46961/Minutes%20-%20Appendix%202%20-%20Transcript%20of%20Item%204%20-%20Questions%20to%20the%20Mayor.pdf
Stephen Knight AM who proposed the motion is available for interviews. Please see contact details below.
Watch the webcast here.
As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Alison Bell on 020 7983 4228. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.