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Press Release

LGA responds to government's right-to-buy housing consultation

22 December 2011

Responding to the announcement of the Government's consultation on right-to-buy, Cllr David Parsons, Chairman of the LGA's Environment and Housing Board said:

“The Local Government Association has long argued for greater investment in affordable and social housing so any funds from right-to-buy sales can play a huge role. The Government's commitment to ensuring that for every house sold, another home will be built in replacement is one we will be holding it to.

“It is paramount that councils are given the ability to decide the discount tenants receive, to ensure that there is enough money from right-to-buy sales to build enough new homes. Any flat national rate would be arbitrary and could produce unexpected results due to house price variations across the country.

“In respect to the receipts from right-to-buy sales, it is vital that all of the money raised is kept by councils, to enable them to quickly invest in affordable housing locally. Councils are trusted by local people to ensure that housing meets their needs and must be given the means to do so.

“If the receipts are pooled nationally, not only will this lead to money being wasted on bidding processes and Whitehall bureaucracy, but it could hit families hard who are desperately waiting for an affordable home in their local area.

“It is also vital that when pushing out the right-to-buy scheme to tenants that they are given the advice and support they need. Councils are concerned that dodgy mortgage advisors could prey on vulnerable people, by offering them poor deals which could lead to an increase in repossessions and homelessness. Central government must ensure that resources are set aside to ensure tenants are protected from these mortgage companies.”

Notes:

- To see details of the consultation, please visit http://www.communities.gov.uk/housing/homeownership/righttobuy/



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