Scotland ends Right to Buy — Comment.
Back in 2014 the Scottish parliament voted to scrap Right to Buy in Scotland. The legislation abolished Right to Buy in Scotland on 31 July 2016.
Being a director of a UK housing association I should be looking on in envy at those in Scotland. The Right to Buy scheme is a constant on the Risk register. It was a manifesto promise by the current government to not only implement the 1% rent reduction but to extend the right to buy scheme.
My knowledge of the original introduction back in 1980 is a little hazy (I was 3 years old). I believe this was an attempt to get rid of social housing completely and unburden the government of its responsibility to provide social homes. Saving the public purse millions a year in housing benefit and maintenance costs. Just like today it was also seen as a vote winner. Putting perceived wealth within reach of those in social housing. But that perceived wealth of owning your own home created the current financial bubble.
I can see and understand the arguments for Right to Buy. A tenant has contributed to the cost of the house for perhaps 10 years or more. Why should they not get the option to buy at a discount? If you are in the housing sector you probably know that it costs more to build a new house than the receipt from a right to buy sale. Essentially pushing the problem of too few homes to the next generation.
With the end of grants to build general needs housing the Housing Association then needs to borrow more money to replace homes lost under right to buy. Just who gets rich from HA’s borrowing money? Bankers.
