Number of tenants buying their council homes leaps
There have been calls for the government to reform the right-to-buy scheme that was introduced by Margaret Thatcher back in the 1980's. The call for changes comes as figures show that the number of council homes sold to tenants was up by a third in the second quarter of this year compared to the some period in 2013.
Of course the whole of the property market has benefited from house price increases and council houses are no exception. Official figures released by the government show that 2,850 council owned homes were sold to tenants between April - June. This amounted to a 30% increase in the same time last year and accounted for over 30% of the total number of sales across London in that period. Official figures also released showed that only 657 new units and homes purchased by councils amounted to just 670.
The reason tenants are so keen to get onto the housing ladder is that they are able to get a large discount on the purchase price of their homes. Recent changes in 2013 allowed for some tenants in London were being given a discount of up to £100,000 in some circumstances.
Coupled with the fact that house prices are going up and some tenants were having to pay the bedroom tax many tenants have taken the plunge and bought their own homes. The money that is produced from these sales is supposed to be put towards the funding of new homes but not enough homes are being built. Councils also only have 3 years to spend the money on new housing projects or they lose it.