First-Time Buyers In England Offered New Homes At Up To 50% Off

First-time buyers in England will be able to apply for a discount of up to 50% on a new-build home under a government scheme. The First Homes initiative could save buyers £100,000 or more. But some experts say that with demand for these cut-price homes likely to exceed supply, it could spark a scramble for properties and add more fuel to the house price boom. The government says the scheme is aimed at first-time buyers in the area where the homes are built, many of whom will be keyworkers such as NHS staff. Read more on the Guardian website.

https://www.theguardian.com/money/2021/jun/04/first-time-buyers-in-england-offered-new-homes-at-up-to-50-off

Government Scrapping Affordable Starter Homes ‘Deplorable’, Say MPs

 A government plan to deliver discounted starter homes has left 85,000 young people waiting in vain for an affordable place to live, in a policy branded “deplorable” by a cross-party committee of MPs. The 2015 initiative to build 200,000 homes and sell them at a 20% discount was formally scrapped this year without a single home being built. But £173m was spent buying land, a damning report by the Commons public accounts committee said. It is now on course to deliver only 6,600 homes and is being replaced by a new scheme. Read more on the Guardian website.

 https://www.theguardian.com/society/2020/dec/09/government-scrapping-affordable-starter-homes-deplorable-say-mps

Forced To Sell Their Homes At Any Price

 Homeowners stuck in flats they cannot sell due to a red-tape nightmare are now so desperate they are flogging their properties at enormous discounts of up to 40 per cent on their asking price. Lenders have been refusing to offer mortgages on tens of thousands of homes after new safety rules were introduced in the wake of the Grenfell Tower fire. But homeowners say they face bankruptcy if they cannot sell their properties, as many expect crippling bills for repair work and rising mortgage payments. The fiasco means growing numbers are now turning to firms that pay cash for unwanted properties at cut prices. Read more on the Thisismoney website.

https://www.thisismoney.co.uk/money/mortgageshome/article-8860203/Banks-refuse-mortgage-flats-cladding-fears.html

Grenfell Insulation Was Sold At Almost 50% Discount, Inquiry Hears

Grenfell Tower may have been used as “a guinea pig” for a newly branded insulation material that burned and released toxic gas the inquiry into the disaster has heard. Foam boards used to insulate the west London council block were sold at an almost 50% discount by their manufacturer, Celotex, to contractors who were asked for help making the refurbishment a “case study” for the firm, the public inquiry was told. The project manager for Harley, the cladding contractor, admitted that he did not check it complied with building regulations to prevent fires spreading through the external walls of tall buildings. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2020/sep/21/grenfell-insulation-was-sold-at-almost-50-discount-inquiry-hears 

Right To Buy Future Under Threat From £5bn National Discounts

Tenants have received discounts of nearly £5bn to help purchase their council home under Right to Buy (RTB) since the size of the discount was increased in April 2012, new analysis by the Local Government Association (LGA) reveals. The LGA warns the scheme faces an uncertain future unless councils are given the flexibility to set discounts locally and retain 100% of sales receipts to fund replacement homes. The national RTB discount, set by government, currently averages 42% of market value. Since the Government increased the size of the RTB discount in April 2012, the average discount on a property has increased by 137% to more than £63,000. Read more on the LGA website.

https://www.local.gov.uk/lga-ps5-billion-national-discounts-threatening-future-right-buy

Discounted Housing Scheme Out Of Reach Of Most First-Time Buyers

A high-profile housing scheme offering first-time buyers discounted homes will be unaffordable to the vast majority of workers on average or low incomes. The First Homes scheme has been described by ministers as “genuinely life-changing for people all over the country”. However, new analysis suggests it will be out of the reach of average earners in 96% of England. Research by Shelter found that, in almost all parts of England, someone on an average salary or lower could not afford to buy one of these new-build homes. It also shows that almost two-thirds (63%) of private renters in England have no savings at all for a deposit. Read more on the Observer website.

https://www.theguardian.com/society/2020/feb/16/first-homes-scheme-unaffordable-most-buyers

First Homes Plan Could Hit Social Housing Numbers

Housing associations have raised concerns over the government’s plan to provide first-time buyers with heavy discounts on new homes, saying the programme could make it more difficult to provide homes for lower-income families in the future. In a consultation document, the government said that it would like to see more developer contributions used to fund the delivery of First Homes. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/sector-bodies-raise-concerns-that-first-homes-plan-could-hit-social-housing-numbers-64997

Key Workers To Be Given 30% Discount In New Housing Scheme

Key workers, such as nurses, police and military personnel, will get priority under a new scheme offering homes for first-time buyers at a 30% discount. Robert Jenrick, the housing secretary, said the new “First Homes” scheme, first announced during the election campaign, would save eligible buyers an average of approximately £100,000 on a first property. The Ministry of Housing, Communities and Local Government is launching a consultation on how the scheme will work, without saying how many will be on offer. It said the 30% discount would apply to “a proportion of new homes” and would be funded out of contributions from developers. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2020/feb/07/key-workers-to-be-given-30-discount-in-new-housing-scheme

First Time Buyers – Parliamentary Written Answer

Baroness Thornhill: To ask Her Majesty's Government what are the essential differences between the existing legislation for Starter Homes and the new First Homes Initiative announced in the Queen’s Speech

Viscount Younger of Leckie: These new ‘First Homes’ will be made available at a discount of at least 30% and will be funded through developer contributions, reducing the cost to both local and national government. Unlike Starter Homes, First Homes will offer a larger discount to buyers that is retained in perpetuity, so that future generations can also benefit from the discount. Local Authorities will be able to prioritise these homes for local residents and key workers, such as nurses, teachers or police officers.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-01-07/HL178

Councils Ask For Housing Discounts Following PWLB Rate Rise

Councils have asked the Treasury to offer discounts on public borrowing rates for housing after interest levels were hiked last week. The government told local authorities that it is increasing the cost of new borrowing from the Public Works Loan Board (PWLB) by 1%, bringing the rate to 1.8% over gilts, which sit at around 1%. The move has led to concerns in local authorities across the country that the increase could threaten planned housing and regeneration schemes. Town halls across the country have been putting in place huge borrowing programmes to build new homes after the government abolished the Housing Revenue Account (HRA) debt cap in October last year. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/councils-ask-for-housing-discounts-following-pwlb-rate-rise-63708?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

One In Seven Council Homes Sold To Tenants On Housing Benefit Under Right To Buy

One in seven council homes sold through the Right to Buy since David Cameron hiked discounts in 2012 has been bought by a tenant on housing benefit. In order to secure a mortgage necessary to purchase a Right to Buy property, a tenant on housing benefit would need someone else to provide the finance. In most cases, this is likely to be family members looking for an easy route onto the housing ladder but it could also be lenders seeking to profit illegally. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/one-in-seven-council-homes-sold-to-tenants-on-housing-benefit-under-right-to-buy-63193?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Housing: Sales – Parliamentary Written Answer

Stephen McPartland: To ask the Secretary of State for Housing, Communities and Local Government, what steps the Government is taking to tackle the disparity in discounts on properties offered to (a) council tenants and (b) right to buy schemes.

Kit Malthouse: The Voluntary Right to Buy pilot currently underway in the Midlands is giving thousands of housing association tenants in the East and West Midlands the opportunity to apply to purchase their homes at Right to Buy level discounts. The pilot will be independently evaluated after completion and future policy decisions will be taken in light of that evaluation.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-07-11/276185

Grenfell Survivors Offered Discounts On Homes Under New Ownership Deals

Survivors of the Grenfell Tower fire will be offered special homeownership deals, including significant discounts on the purchase of new properties by the government and Kensington and Chelsea Council. In a letter to former residents of the tower, housing secretary James Brokenshire and Kim Taylor-Smith, deputy leader at the council, outlined the two offers. The Enhanced Portable Discount will allow residents to use a discount to buy a home on the open market anywhere in the country apart from the one they currently live in. It will involve discounts of up to £160,000, £50,000 more than the Right to Buy. Residents will also be offered the Grenfell Assisted Home Ownership Scheme. Read more on Inside Housing.

https://www.insidehousing.co.uk/home/home/grenfell-survivors-offered-discounts-on-homes-under-new-ownership-deals-61828

Housing Associations Buy Up Discounted Homes From Builders Amid Brexit Uncertainty

Housing associations are buying up new build homes from private builders at discounted rates, as they look to offload stock amid Brexit uncertainty in the housing market. Builders have sought out large housing associations in recent weeks to offer difficult-to-sell homes at discounts of up to 15%. The homes are being converted into affordable properties using government grant – but the move is a major sign of the growing uncertainty around Brexit and the stagnating market hitting house builders’ plans. Some are understood to be bolstering sales numbers before year end results. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/housing-associations-buy-up-discounted-homes-from-builders-amid-brexit-uncertainty-59683?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Flexible Right To Buy

Many in council accommodation are there due to current prices in the UK’s cities. High prices mean, even with the current Right to Buy discount, that many mortgages are out of reach for those in these homes. Today we call for a reboot of Help to Buy: by making it flexible.

·         Social tenants eligible for the Right to Buy should be given a Flexible Right to Buy, entitling them to buy a new home, using the value of their Right to Buy discount.

·         The tenant’s previous home would then be sold, funding the discount and raising additional revenue.

·         A conservative estimate of the impact would see 21,000 tenants take advantage of the scheme with £2 billion of discounts on £9 billion of stock and net receipts of £7 billion.

Read more on the Adam Smith Institute website.

https://www.adamsmith.org/research/flexible-right-to-buy

Government Expects 3,000 Right To Buy Sales In Midlands Pilot

Ministers expect around 3,000 housing association homes to be sold through the Midlands Voluntary Right to Buy pilot. A regional trial of the policy to allow tenants to purchase their homes at a discount equivalent to that available to council tenants was launched earlier this month. The Treasury has provided £200m to cover the discounts, which will average £66,667 if 3,000 homes are sold. Right to Buy discounts are calculated based on how long the purchaser has been a tenant, the value of the home, whether it is a house or flat and how much the social landlord has spent on its upkeep. Read more on Inside Housing.

https://webcache.googleusercontent.com/search?q=cache:sCy0xVmT4lMJ:https://www.insidehousing.co.uk/news/news/government-expects-3000-right-to-buy-sales-in-midlands-pilot-57713+&cd=2&hl=en&ct=clnk&gl=uk&safe=vss

‘Keyworkers’ Could Pay Discount Rent

Discount rent for public sector workers, carers and victims of domestic abuse is being mooted by Southwark Council in an effort to tackle the on-going housing crisis. As part of its commitment towards 35 per cent affordable housing, the council is suggesting a possible ‘intermediate’ and ‘keyworker’ housing scheme. Intermediate rent is discounted at around half  private market rent for people on incomes below £60,000, while people earning between £60,000 and £90,000 are eligible for a discount of at least 20 per cent. It says developers who build for private rent are allowed to meet this figure using discount market rent. Read more on the Southwark News website.

https://www.southwarknews.co.uk/news/keyworkers-could-pay-discount-rent-in-southwark-housing-shake-up/

£3.5 Billion Right-To-Buy Discounts Threatens Scheme

New analysis by the Local Government Association reveals almost £3.5 billion in Right to Buy (RTB) discounts have been handed out to council tenants over the past six years. The LGA, which represents 370 councils in England and Wales, is warning the RTB scheme has become unsustainable and risks becoming a thing of the past unless councils are given the powers to set discounts locally and replace every home sold. The Government increased the size of the discounts available in April 2012, as a result the average discount has increased by 132 per cent to more than £60,000 in 2016/17 – selling properties at almost half price. Read more on the LGA website.

https://www.local.gov.uk/about/news/ps35-billion-right-buy-discounts-threatens-scheme

Right to Buy Scheme – Parliamentary Written Answer

Lord Beecham: To ask Her Majesty's Government how much they estimate has been realised since 2010 through the sale of council housing under right to buy; and what was the  total of the discounts accorded to purchasers exercising that right. 

Lord Bourne of Aberystwyth: Nearly £4.8 billion has been generated from Right to Buy sales receipts since 2010. Table 682 - Social Housing Sales: Annual Financial Data on Right to Buy sales for England. (https:/www.gov.uk/government/statistical-datasets/live-tables-on-social-housing-sales) contains the average discounts that tenants received when purchasing their home under the Right to Buy.

Only One In 10 Rent To Buy Tenants Purchases Home

Responding to an Inside Housing survey, nine large housing associations revealed they have completed a total of 1,594 Rent to Buy homes over the past decade but have sold just 180 to the original tenants.  Rent to Buy offers a fixed-term tenancy of usually five years at a discounted rate, with the tenant supposed to buy the home or a share in it at the end of this period. But the survey results reveal just 11.3% of tenants were able to do so, with the remainder either continuing to rent or moving out at the end of this period. Read more on Inside Housing.