Tory Right To Buy Claims Slammed As 'Fairy Stories' After Greg Clark Says Every Right Home Sold Will Be Replaced

Why The Government's Latest Promise On Right To Buy Sounds A little Familiar
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Communities Secratary Greg Clark has been accused of "believing in housing fairy stories" after promising that the government will build one new home for every affordable home it sells off under the new extended Right To Buy scheme.

The policy - set to be featured in The Queen's Speech tomorrow - means that housing association tenants will now have the right to purchase their rented home with huge discounts of up to £100,000.

“Nearly 90% of people want to own their own home. Just because you have signed a social tenancy, you shouldn’t be signing away your aspiration, forever, for owning your own home," Clark told BBC Radio Four's Today programme. "We know that council tenants have the ability to own their own home through Right to Buy. We think it is fair that we extend that to housing association tenants."

But, in the midst of a severe shortage, the fresh claim that one new property will be built to replace every home sold under the scheme has been met with disbelief given the coalition government's track record on housing.

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Clark was accused of believing in "housing fairy stories"

The government has already made the 'one-for-one' promise before in 2011, claiming it would replace all houses sold under Margaret Thatcher's original Right To Buy scheme, which used to apply only to council houses. The then Housing Minister Grant Shapps said "every additional home that is sold will be replaced by a new affordable home on a one-for-one basis."

According to housing charity Shelter, that attempt has been a "rank failure".

Out of 863 council homes sold in Greater Manchester since 2012, only two have been replaced, Shelter says.

Work has only started to build replacements for 1 in 10 of the council homes that have been sold since the original 'one-for-one' 'replacement promise was introduced, it adds.

Clark insisted that the money from the sale of housing association properties would indeed be used to build another home and rejected suggestions that this version of right-to-buy would face the same problem as Mrs Thatcher's policy, when the vast majority of homes sold were never replaced: "Every housing association property sold will be replaced one-for-one with a new property. So, it is not only allowing people to meet their aspiration, but actually to increase the housing stock as well."

But his claim was immediately met with skepticism:

Clark was asked to admit whether the previous policy was a "failure" which failed to replace houses being sold, but insisted the current policy would stand up.

"It will be replaced one-for-one, and of course, every person who has bought their own home will continue to live in it, so, it is increasing the housing stock. The object of that policy was not to replace the whole of the stock, this new policy is to replace it."

He added that the previous policy allowed a three-year gap between sale of a property and its replacement, which he said explained the "lag".

When pressed to determine when the previous policy would meet its target, Mr Clarke declined to provide a definite answer, but insisted the current version due to be announced in the Queen's Speech would replace stock one-for-one.

But Campbell Robb, Chief Executive of Shelter, claimed that the money made from selling housing association homes at a discounted price often simply isn't enough to build a new home: “You simply cannot solve this problem by selling off affordable homes, not replacing them, and ignoring the country’s eleven million private renters.

“The government talks about providing a helping hand to people wanting to get on the ladder, but in reality, they’re giving with one hand, and taking with the other. Getting on the housing ladder is beginning to look less about the product of your hard work and more like the product of a lottery."

Robb added: “Instead of building the 250,000 homes a year we need or protecting the affordable homes budget, starter homes will be available to a select few, and right-to-buy will be the nail in the coffin for some of the last truly affordable homes.

"This housing bill should be the point where the government gets serious and actually deliver the homes we need, or the amount of young adults owning a home could halve by 2020, and many more people will find it harder to rent somewhere decent and affordable.”

20 shocking facts about private renting
House prices are officially a complete joke(01 of20)
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A staggering 80% of properties in England are unaffordable to a family of renters on average wages looking to buy their first home, Shelter has found. There are just 43 homes in London that the charity classes as genuinely affordable - and that includes house boats and one mobile home. (credit:fazon1 via Getty Images)
Rents are rocketing(02 of20)
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Rental costs in England and Wales have risen 15.2 per cent since the last general election, faster than the rate of inflation, an index from Your Move and Reeds Rains estate agents shows. But - in another blow to those hoping to buy - house prices have risen even faster, at 28% to an average price of £268,000, according to the Office for National Statistics. (credit:Niki van Velden via Getty Images)
And it's not just renters who are suffering...(03 of20)
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It's their friends and family too. An exclusive poll for HuffPost UK found that 19% of people need help from their friends or relatives to pay their rent. (credit:MARIA TOUTOUDAKI via Getty Images)
Renting for life will cost you dearly(04 of20)
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Renting ‘lifers’ will be over half a million pounds worse off than those who buy a home in their twenties, according to Shelter. This reveals the huge financial cost of being priced out of homeownership for a lifetime - a likely fate for many people if the situation we're in continues. In London, the amount you could lose is an even more eye-watering £1.36 million. (credit:Gareth Fuller/PA Wire)
Rent is forcing people cut back on essentials(05 of20)
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Rent is so expensive that two in five private renters (39%) say they have had to cut back on heating because of the cost of rent, while a third (33%) say that they have had to cut back on food, the Generation Rent campaign claimed in 2014. (credit:Jupiterimages via Getty Images)
And it's not just about the money(06 of20)
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Being priced out of homeownership damages more than just your wallet: your wellbeing can suffer too. Shelter research found damaging social and emotional impacts of being unable to buy a home, including feeling unstable or alienated in your career or relationships, or jealous of friends who had help from family to buy a home.

Some people are even put off parenthood because of uncertain housing situations - or risk their children’s wellbeing by not having enough space in a rented home.
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Bad landlords are far too common(07 of20)
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The National Landlords Association finds that around 12 or 13 per cent of tenants it surveys say they think they have dealt with a rogue landlord - someone acting in a criminal manner. While it's not a majority, that's over a million, and "far too many" - as the head of the association Richard Lambert admitted to HuffPost UK. (credit:Chris Mellor via Getty Images)
Government policies may be making things worse(08 of20)
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According to housing campaigners, many policies like the Help To Buy ISA, and the Tories's plan to extend the Right To Buy scheme to housing association properties, will simply make things worse, by pushing up house prices while not adding desperately needed homes to the market. (credit:Jupiterimages via Getty Images)
Renters are valuable voters - yet they're being forgotten(09 of20)
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Generation Rent conducted a poll of 1,004 private renters and found that 35% say that they tend to change which party they vote for between different General Elections, making them potential swing voters.

With 11 million people in the private rented sector in England, and most of them saying that renting is the thing they spend the most money on, you'd think that politicians would listen up - but historically little has been done to address private renters' concerns, despite a flurry of promises in the last days of the election campaign.
(credit:Bloomberg via Getty Images)
Only 6 in 10 renters can actually vote(10 of20)
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Private renters are far less able to make their voices heard by politicians because only 63% are registered to vote, compared to 94% of people who own their home, according to the electoral commission. And, as the electoral register is used for credit checks, not being on it could also stop a renter getting a mortgage, if they are ever able to afford buying. (credit:Floresco Images via Getty Images)
The sector is growing too big, too fast(11 of20)
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Private renting is booming – but not in a good way, as there isn't enough good housing for rent. When Shelter started a campaign last year to make 'revenge evictions' illegal (which it succeeded on) the movement was called '9 Million Renters' after the number of renters in the UK. Now, it would have to be renamed '11 million Renters.' (credit:inxti via Getty Images)
They are renting their way into poverty(12 of20)
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The Joseph Rowntree Foundation has predicted that, without action, rents will rise twice as fast as inflation, meaning that by 2040 half of all private renters (currently 6 million people ) would be living in poverty because of the cost of rent.

Private renters’ rights campaigner Heather Kennedy claims she volunteered at a soup kitchen, and found that "about a third of the people there were in private rented [accommodation]."

"It really struck me that the imbalance of power is much worse the lower down you get in the market," she told The Guardian, "so if you are living really at the bottom end of the market, that’s where you’ve got the most exploitative conditions, you’ve got landlords that really have absolutely no respect for the wellbeing of their tenants and it’s all happening completely under the radar.”
(credit:BEN STANSALL via Getty Images)
Renting is the biggest route to homelessness(13 of20)
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Being evicted from private renting is now the number one path to homelessness, according to Shelter - mainly because landlords won't renew contracts, or people can't afford their rent. (credit:Christopher Furlong via Getty Images)
Most renters simply don't want to be there(14 of20)
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Most renters don’t want to be renting. Two-thirds of private renters (67%) would rather own their home, while another 10% would prefer to be in social housing, the Generation Rent campaign says. (credit:Gary Burchell via Getty Images)
Things shouldn't be like this(15 of20)
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The private rented sector is housing more and more people that it wasn't designed to cater for - individuals and families who might ordinarily have been in social housing or supported housing. They can be vulnerable and landlords can discriminate against people who are claiming housing benefit. (credit:Cultura/Nick Daly via Getty Images)
Even if it doesn't affect you, it will affect someone you know(16 of20)
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Even if you own a swanky pad, the crisis may be touching you - most of us (57%) say they, or someone they know, is struggling to buy or rent a suitable home, according to the Generation Rent. (credit:Bloomberg via Getty Images)
We could be so happy(17 of20)
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The sad thing is that people could be perfectly happy with renting. A poll for flatshare site Weroom found that 55% of people (and 66% of over 35s) would rather rent than buy a home - if renting offered secure tenancies and affordable rents.

That's a big if, but it makes clear that owning is not something people crave simply for investment purposes, it's also to escape the instability of renting.
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Private renting is used as a plaster for council housing(18 of20)
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Councils are offering landlords cash payments of up to £4,000 to house homeless families, according to The Guardian, as a shortage of council housing forces them to look to the private sector.

The “golden hellos” were seized on by critics of the Tory plans to extend Right To Buy - meaning that there would even fewer council homes for rent when local authorities are clearly already having difficulties housing people.
(credit:LatitudeStock - David Williams via Getty Images)
Activism has a slow payoff(19 of20)
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We had the biggest ever housing rally in Britain, from the Homes For Britain campaign in March - and while politicians may have noticed the message (build more homes) they didn't really show it.

The next major political announcement was the Conservatives's plant o extend Right To Buy to housing associations, which will increase competition for houses rather than providing more, campaigners say, and united the housing sector in condemnation.
Uncertainty in old age(20 of20)
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With the collapse of pensions, people who own a home may rely on their investment to support them when the retire. But what of the millions priced out of buying?

"We haven't even begun to get into the thought process around if more and more people stay renting privately until they are in their 40s and 50s, what impact that has on their pensions," says Richard Lambert, the CEO of the National Landlords Association.
(credit:Peter Chadwick LRPS via Getty Images)

Henry Gregg, Assistant Director at the National Housing Federation, said: “This policy is not a genuine solution to our housing crisis. An extension to the Right to Buy would mean that housing associations are working to keep pace with replacements rather than building homes for the millions stuck on waiting lists. At a time when we need to be increasing the overall amount of social housing, it is like trying to fill a bathtub with the plug taken out.

“What’s more, forcing housing associations to sell of their properties under the Right to Buy sets an extremely dangerous precedent of government interference in independent businesses.

“We fully support the aspiration of homeownership, but this policy does nothing for the 11 million private renters and three million adult children living at home with their parents. If there is £22.5 billion of public money available for housing, we should use it to build homes the next generation needs, not just gift it lucky few already housed in housing association homes.”