A £200 million pilot has been launched in England to boost social home ownership and help tenants realise their dream of owning their own home.
The Midlands Voluntary Right to Buy Pilot will give thousands of social housing association tenants the opportunity to get a foot on the housing ladder.
Places in the programme will be allocated via a ballot to ensure fairness for applicants and money from the discounted sales will then be used to fund replacement homes.
The ballot will close on the 16 September 2018 with the pilot running until spring 2020 giving successful candidates adequate time to complete the purchase. The Government will assess the impact of the pilot before deciding on the next steps for the policy.
‘We are committed to providing opportunities for people to get a foot on the property ladder and to have a place they can call their own,’ said Secretary of State for Housing and Communities James Brokenshire.
‘Our £200 million investment into the Midlands Voluntary Right to Buy pilot is the first step in helping housing association tenants realise their dream of home ownership,’ he added.
David Orr, chief executive of the National Housing Federation, said it has been working with the Government for three years on its proposal to extend the Right to Buy to housing association tenants.
‘Of course, this pilot is not the finished product. We want to take the time to get this major endeavour right. It will be a success for everyone involved only if every home that is sold is replaced with a new affordable home, and if the application process is as smooth as possible for tenants,’ he pointed out.
‘Now, we are looking forward to working with tenants, with housing associations and with the government to make this pilot a resounding success. This scheme must empower social housing tenants and meet our own ambitions to deliver the homes the country needs,’ he added.
Council housing tenants are already able to buy their home at a discount and since 2010 Right to Buy has helped almost 94,000 households.
In June a £1.67 billion Government grant was announced from the £9 billion Affordable Homes programme that will deliver 23,000 new affordable homes, including 12,500 for social rent.
