Month: July 2013

The right of council tenants to buy their homes at heavily discounted prices is set to be abolished in Scotland. Deputy First Minister Nicola Sturgeon confirmed the government’s decision to end the scheme on a visit to a housing association in Glasgow yesterday.

The ‘right to buy’ scheme was introduced by Margaret Thatcher’s Conservative government in 1980 and proved hugely popular with council tenants – for many, their new mortgage was cheaper than rent and it gave tens of thousands a first foot on the housing ladder. The best quality houses in the most popular areas were quickly snapped up at bargain prices – across Scotland, 455,000 homes have been sold under the scheme.

However councils were not allowed to use receipts from council house sales to build new homes, and the inevitable consequence was a growing shortage of good quality social housing and ever-increasing waiting lists which successive governments failed to adequately address.

The Scottish Government says that thousands of people will now benefit from improved access to social housing thanks to the decision to end the Right to Buy scheme – up to 15,000 social houses will be protected from sale over the next decade, .  Earlier reforms to RtB and suspensions in pressured areas have already meant that the right to buy is already unavailable to many social housing tenants but the latest announcement safeguards social housing stock for future generations, helping to build more cohesive and sustainable communities.

Social housing tenant who still has the right to buy will have a period of three years to exercise it following royal assent of the Housing Bill, expected in Autumn 2014 and the Scottish Government will continue to assist people into home ownership through a range of shared equity schemes.

Making the announcement, Ms Sturgeon said: “It is absolutely vital that people can access social housing when they need it most. Social housing is under significant pressure and so too are the budgets that support it.

“The Scottish Government is doing everything possible to maximise our investment in housing and deliver on our target of 30,000 new, affordable homes over the lifetime of this Parliament. But, given the pressure on both the housing stock and budgets – and with 400,000 people on waiting lists for social housing – we can no longer afford to see badly needed homes lost to the social sector.

“That is why I am today announcing the final stage of the abolition of the Right to Buy – a decision that will safeguard Scotland’s social housing stock for the benefit of citizens today and for our future generations.

“Tenants who currently have a right to buy will have a period of three years from the date of royal assent of the Housing Bill in which they will be able to exercise that right – but after that date it will no longer be possible to buy social houses. This will mean that social houses will always be available for long term rent, helping to ease pressure on the social rented stock.

“More than 450,000 houses have already been sold through right to buy and although the policy has been restricted in recent years, its final abolition will safeguard an estimated 15,000 homes over the next decade.

“Notwithstanding our decision to end the right to buy, which has been fully consulted on, the Government remains committed to helping people buy their own homes and our shared equity schemes are helping – and will continue to help – thousands of people get a foot on the property ladder.”

Graeme Brown, Director of Shelter Scotland said: “We welcome the news that this outdated policy – which for a long time has had no place in Scotland’s housing landscape – is to be scrapped.

“Around half a million public sector homes have been sold off in Scotland since the policy was implemented. Meanwhile, 157,000 families and individuals are today stuck on council waiting lists for a home to call their own.

“Shelter Scotland has long-campaigned for the abolition of Right to Buy and praises the Scottish Government on their decision to protect existing and future council house stock in a bid to address Scotland’s chronic housing shortage.”

Andy Young, Scottish Federation of Housing Associations Policy and Membership Manager added: “We are delighted that the Scottish Government has decided to end all forms of the Right to Buy in Scotland. Right to Buy has had its day and has no place in 21^st Century Scotland. The SFHA and its members have campaigned for this for years and we thank the Scottish Government for listening closely to the arguments for abolition which we put forward.”