The Right to Buy scheme has been available in various guises since it was first launched in the 1980s and following a relaunch in 2012. In essence the scheme gives qualifying social tenants the opportunity to buy their rented home at a discount.
There is a maximum discount of 70% of the value of the property and a number of conditions must be met to use the scheme. The Prime Minister announced, on 9 June 2022, that the scheme is to be extended to housing association tenants. This move that could benefit some 2.5 million tenants renting their homes in this way.
The government will work closely with the housing association sector on the design of the scheme and has also pledged to build a new social home for every one sold.
The government will also change the rules to incentivise those who are claiming Universal Credit to save for a deposit. Currently, welfare rules taper the amount of Universal Credit received when the claimant’s savings exceed £6,000, and it stops entirely when savings exceed £16,000.
The government have also committed to launching an independent review of access to mortgage finance for first-time buyers, with the aim of making it easier for this group by widening access to low-cost, low-deposit finance such as 95% mortgages.