Union claims right to buy reform is a ‘shoddy scam’

Construction union Ucatt has described the government’s plans to reform right to buy as a ‘shoddy scam’ in its response to a consultation on the proposals.

In its official response to the Communities and Local Government department consultation, which closed this week, the union accuses the government of ‘misleading’ the public over a pledge to replace every home sold with a new property.

It also says the proposals ‘do not tackle the fundamental problem of pre-existing insufficient levels of social housing’ and calls on the government to revisit the budget cuts it made to housing at the time of the 2010 comprehensive spending review.

Under the government’s plans for right to buy, council tenants would be offered increased discounts if they want to buy their home, with the money spent on building new properties.

However Ucatt questions the government claim that a new home would be built for every one sold, noting that 12,700 properties are expected to be sold between 2011 and 2015 through the existing right to buy, and these homes will not be replaced.

It also notes that although no firm decision has been made on a mechanism for ensuring RTB revenue is spent on new homes, it is likely this will have to be channelled into a central pot as the cost of a sale will not allow a replacement home to be built in some areas.

The consultation response states: ‘This means that replacement homes will not necessarily be built in the area where properties have been sold.  This could further exacerbate housing problems in areas of high housing demand.’

Ucatt is also concerned that new homes built as a result of right to buy sales could be let at higher rates due to the introduction of the affordable rent product, which allows rents to be set at up to 80 per cent of market rate. It warns this could lead to higher levels of arrears and evictions.

Steve Murphy, general secretary of Ucatt, said: ‘The government’s claims that they will replace existing homes being sold under right to buy with new properties has been exposed as a shoddy scam. At a time when housing need is at crisis levels, nearly 13,000 homes will be sold before a single additional property is built.

‘If councils are forced to sell off their housing stock, the very least they can expect is to be given those funds to provide new homes for local residents in housing need. Given the actions of previous Conservative administrations we have legitimate concerns that these proposals will lead to gerrymandering, social engineering and herald the return of the rigged housing rules of  the 1980’s and 90’s .’

A Communities and Local Government department spokesperson said: ‘The housing strategy made clear that, alongside increasing the average discount for social tenants wishing to buy their own home, a new affordable home will be built for every additional home bought under the right to buy. Local authorities will have assumed a level of income from right to buy sales under the current discounts, in their financial planning.’