Julian Knight MP has welcomed the launch of a new, voluntary right-to-buy pilot for Housing Association tenants in the West Midlands.
Under the new programme from the Ministry of Housing, Communities, and Local Government (MHCLG) will enable thousands of tenants to purchase their home, at a discount subsidised by the Government with a £200 million fund announced by the Chancellor in the Autumn Budget of 2017.
The goal of the pilot is to test how Right to Buy works for Housing Association tenants. Buyers will receive the same discount as applied to council houses under the statutory Right to Buy scheme, but Associations will have discretion over which properties they sell.
Where a property is excluded from the pilot the tenant will be offered the chance to buy another Housing Association property with the same discount – this ‘portable discount’ is a new feature and will be tested throughout the pilot.
The pilot also aims to test whether Housing Associations are able to replace sold properties on a one-for-one basis, ensuring that spreading home ownership does not undermine the sustainable future of supported housing.
Commenting on the programme, Julian said:
“I’m very glad that the Government has decided to test this new scheme in the West Midlands, bringing the realistic chance of home ownership within reach of thousands’ of Housing Association tenants across the region.
“By taking care to ensure that Associations are able to replenish their housing stock to balance sales, this up-to-date version of Right to Buy aims both to give tenants the power to own their own home whilst ensuring there is always enough supported housing for those who need it.”