The UK government has announced that the Right to Buy scheme will be extended to housing association tenants allowing those renting their homes through housing associations to buy their property outright.
It is proposed that for every house that is sold, one new social home will be built. Currently, there are said to be 1.1 million people on waiting lists for social housing.
How does the government Right to Buy scheme work?
The Right to Buy scheme is not a new concept and has been available since the 1980s. However, the scheme currently gives council house tenants an opportunity to buy their house at up to 70% below market value.
What is the new Right to Buy scheme?
The scheme extension aims to allow 2.5 million housing association renters the chance to buy their property.
This seems like a great opportunity for those who want the prospect of owning their own home. With the increase in property prices in the UK, the idea of purchasing a property may feel like a pipedream. However, the government is looking to make it easier for first-time buyers to purchase a property by allowing 95% mortgages for instance.
The government will also aim to incentivise people claiming Universal Credit to put money aside for a deposit. A requirement for those who qualify for housing benefits is that they must have less than £16,000 in savings, however, the government is looking to exempt savings from a Lifetime ISA so that savers will not be punished for saving more money and their Universal Credit payments will not be affected.
There is little information as to who exactly will benefit from the extension scheme, exactly how it will work, and whether it will be available through all housing associations, however, we will continue to keep you updated.
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