Disappointing failure to give social tenants a foot up the housing ladder

New figures expose poor take-up of flagship Government housing policy in Cheshire

The Government was accused this week of undermining social opportunity and social mobility. Its own official figures expose the minimal take-up aross Weaver Vale of the flagship Government scheme to allow social tenants to buy or part-buy their home.

Figures also reveal how the ‘Right to Buy’ is now increasingly beyond the reach of council tenants in Cheshire. As a result, even before the credit crunch, the chance of tenants of buying their council flat or house has been denied to ever more people on lower incomes.

Minimal take-up of Social Homebuy: The Government’s Social Homebuy scheme was supposed to enable council or housing association tenants to own or part-own their rented homes. Launched in April 2006, it was intended to help 5,000 households every year into home ownership. Yet the latest figures show that in the last three years, only 300 households have been helped, compared to the target of 15,000.

Government cuts to Right to Buy: The Right to Buy gives council tenants the ability to purchase their home or flat, with a discount to the sale price. Labour Ministers have presided over six different cuts to the Right to Buy discounts and eligibility criteria. Figures have now revealed that since 1998, the average discount as a percentage of the market value has plummeted from 48% of the house price to just 32%.

Promoting mixed communities and neighbourhood pride: Independent experts have made clear that the Right to Buy has “enabled many households to become owner-occupiers who would not otherwise been able to do so”, with a “positive influence in maintaining mixed communities”. Building on its success, Conservatives are pledging to give social tenants an equity stake for responsible behaviour, grant tenants a ‘Right to Move’ to promote mobility, and support schemes to allow people to buy or part-buy their council house or housing association home.

Graham Evans Weaver Vale’s Conservative Prospective MP,  said:

“It is disappointing that Labour Ministers have kicked away the housing ladder away from social tenants in Cheshire and made it harder to realise the ambition of home ownership.

“Housing mobility has a vital role in fixing our broken society. Giving people a financial stake in their home promotes greater neighbourhood pride across Cheshire. Helping people move up the housing ladder frees up a social property for those on the increasingly long housing waiting lists.”

30 June 2009