The Deputy Prime Minister has indicated a significant shift in housing policy, aiming to halt the sale of new council homes in England under the Right to Buy scheme. Angela Rayner emphasized the need for restrictions on social housing to prevent the loss of vital stock, particularly in light of a growing homelessness crisis.
Rayner expressed a commitment to protecting newly constructed social homes from exiting the system, highlighting the urgency of the situation as winter approaches.
Introduced by Margaret Thatcher’s Conservative government in 1980, the Right to Buy scheme has facilitated the purchase of over two million homes, often at substantial discounts. While initially praised for boosting home ownership rates, it has increasingly been criticized for exacerbating homelessness.
In 2012, the Conservative-led coalition relaunched the initiative, raising the maximum discount available to tenants. Currently, this discount reaches £102,400 across England and £136,400 in London. In stark contrast, Labour’s recent proposals aim to reduce these discounts significantly, with figures suggested between £16,000 and £38,000, depending on location.
Additionally, Labour’s recent Budget allocations allow local councils to retain all revenue from council house sales—a policy that was previously altered under Conservative governance.
As reports reveal record levels of homelessness—with 4,780 individuals seen sleeping outdoors in London alone this past summer—Rayner described the situation as a “catastrophic emergency.” During her visit to a hostel for rough sleepers in South London, she met individuals like Stephen Richards who shared his struggles with finding affordable housing amid rising rental prices.
Richards noted that what used to be termed a “lodger” is now marketed as an “en-suite,” with exorbitant rents that make securing accommodation nearly impossible for many.
The government’s recent measures include a £233 million commitment aimed at tackling all forms of homelessness, pushing total investments close to £1 billion by 2025-26. Furthermore, an additional £10 million is earmarked specifically for rough sleeping support directed toward local councils facing acute need.
Rayner acknowledged that resolving this issue requires collaboration across various government departments and a proactive approach to prevent homelessness before it occurs.
In parallel, charities like St Mungo’s are optimistic about legislative changes such as the Renters' Rights Bill. This bill aims to eliminate Section 21 evictions, which have been identified as significant contributors to homelessness within the private rental sector.
As England confronts these pressing challenges within its housing market and rising homelessness rates, government officials are set to launch consultations later this year regarding potential reforms. The focus will remain on safeguarding social housing while addressing systemic issues contributing to homelessness—an endeavor that will undoubtedly require both immediate action and long-term strategies for sustainable change.
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