The ‘right to buy’ scheme, first introduced by Margaret Thatcher in the 1980s, is set to be re-introduced, with proceeds going to build new social housing.
Prime Minister David Cameron has announced that a new version of the right to buy scheme will be launched, enabling thousands of people living in council accommodation to purchase their homes. Unlike the old scheme, funds raised through the sale of council flats and houses will be reinvested in the construction of new social housing.
Tenants will be entitled to a discount on the value of their home. How much this will be is yet to be revealed and will depend on how long someone has lived in their home. However, early reports suggest discounts could be as high as 30% to 50%.
200,000 new homes
The Prime Minister said that the new scheme will result in 200,000 new homes being built, and generate 400,000 new jobs. It would benefit the building industry, as funding for the scheme will cover construction and firms will only pay for the sites when the properties are sold.
He told the BBC’s Andrew Marr that there are over two million homes that are still available to be bought.