Right To Buy Mortgages

Right to Buy - The Political Background

Right to buy was one of the policies introduced by Margaret Thatcher. Over the years, the policy has been extended to allow more people to become involved in the scheme and to own their own property. Recently, David Cameron stated that he wishes to increase the number of people who are eligible, thus creating a higher number of first time buyers and owner occupiers.

Social Benefits of Right to Buy
One of the main benefits of the right to buy scheme for the wider community is that the demographic movement created by the right to buy scheme is often beneficial, across the entire area. Blocks of flats that were traditionally populated by short-term council tenants now have a larger proportion of owner occupiers in the block who offer a degree of stability and pride in the property.

In addition, those who have not yet exercised their right to buy have a tangible goal and a reason to remain in their property, as well a reason to look after the property as if it were their own. By giving individuals this opportunity, the entire area will see an uplift and all residents stand to benefit.

Other Implications of Right to Buy
Currently, there are concerns in government circles that the right to buy is exacerbating the problem of affordable housing for those who are unable to consider purchasing property. Whilst allowing council tenants the opportunity to purchase their property promotes ambition and ensures that property is better looked after, it does generally reduce the number of rental properties available for those unable to purchase.

For this reason, the additional eligibility period was introduced in January 2005, requiring tenants to have been resident for at least 5 years, before they gain the right to buy. Government figures suggest that there are 1.5 million people on council housing waiting lists, an issue that is not likely to become any better with more people purchasing their council property, thus removing it from the pool of available social housing.

Summary
Right to buy has changed the demographic of traditional housing estates;
by offering the right to buy, tenants are more inclined to ensure that their property and their immediate surroundings are better cared for; but
the right to buy is fuelling the chronic shortage of social housing available and may be subject to further restrictions, in order to prevent greater problems.