Prime Minister Boris Johnson is considering a plan to offer rented houses to 2.5 million tenants at discounted prices through the Right to Buy scheme similar to the one which was launched in the 1980s by Margaret Thatcher. It could help a generation of first-time buyers locked out of the housing market because of rocketing prices get on the property ladder.
A government source said, "the Prime Minister has got very excited about this. It could be hugely significant. In many ways it is a direct replica of the great Maggie idea of ‘buy your own council flat’.
The plans to help "generation rent" come ahead of local elections on May 5 this week. With the current Right to Buy scheme, council tenants a can buy their home at a discount of up to £116,200 in London and £87,200 in the rest of England. They need to have lived in their property for three to five years to qualify for a 35% discount.
It was originally introduced by Margaret Thatcher through the Housing Act 1980. You’ll usually have to repay some or all of your discount if you sell your home within five years, or all of it within the first year. Any similar scheme for Housing Association tenants would still need to be created and passed into law, and that can be a lengthy process.
Millions of renters face hurdles getting on the property ladder, including sky high house prices. Higher house prices are a problem because it means you need to save even more for a deposit to be in a position to buy. A new scheme recently launched helping homebuyers get on the ladder with a 5% deposit.
