Right to Buy: Future Council Tenants 'Set for Higher Rents'

An expert has warned that the Government's reinvigorated Right to Buy (RTB) scheme is good for current tenants - with attractive discounts on offer - but will leave future tenants paying more expensive rents. Grant Shapps says he is committed to replacing each home sold through the programme with a new one let at a higher rent. This is so councils and housing associations can borrow against future revenue streams to replace the sold stock, as the cash received per sold home will only be a fraction of the build cost of a new one. Responding to the RTB consultation, former Housing Corporation boss Steve Douglas warned the deal would leave future tenants with higher rents. He said: "The policy is more 'buy cheap now, and rent more expensive later. It’s clear, the sold one build one pledge only works if local authorities and housing associations are prepared to play ball and increase their borrowing against future rental streams on the one hand and discount land receipts on the other.” Read more on 24dash.