Tory housing minister warned about risks of right-to-buy plan

At their manifesto launch the Tories unveiled their right-to-buy proposals and they haven’t been met with much enthusiasm. Even the public don’t think they’re a very good idea. It seems there’s not even agreement on this contentious policy among the Tories.

The plans the Tories are proposing would extend the right-to-buy policy to housing associations tenants. Cameron also said that councils would be have to sell off their most valuable remaining properties – the money from this he argued would be used to create more affordable homes. However, research suggests this isn’t viable.

Just over a year and a half ago, the Tory Minister for Housing at the time – Kris Hopkins – said that there were high risks in forcing housing associations to sell off properties.

A leaked ministerial letter shows that the Tories are aware that if housing associations are forced to sell off properties at low rates, this would reduce the numbers of affordable homes.

The Observer have found Hopkins’ letter written to Lib Dem Tessa Munt. It show that the minister, who is now the minister for communities, was highly critical of the plans:

“Unlike local authorities, housing associations are independent, not-for-profit voluntary bodies and if they are obliged to consistently sell off their stock at less than market value they might find it difficult to borrow which could impact adversely on their repair and maintenance programmes and affect the future provision of affordable housing.

“The government does not consider that it would be reasonable to require housing associations to sell these properties at a discount. Any increase to the discount available under the Right to Acquire would only be possible through upfront central government subsidy, potentially incurring a high liability for the public purse.”