The Government will announce changes to the right-to-buy scheme to increase the discount that is offered to council tenants.
Right-to-buy was first introduced in the 1980’s when Margaret Thatcher was Prime Minister. The scheme allows council tenants in England and Wales to buy their council home at a discount if they have lived there for 12 months or more.
Today David Cameron will announce plans which could see discounts of up to £75,000. The increase is higher than the current discount which is capped at £16,000 for most of London and £38,000 in other parts of the country. It is hoped the new rules will encourage more tenants and mortgage lenders to get involved in the scheme.
The Government will ensure that for every home purchased under the right-to-buy scheme a new house will be built which will create a number of jobs for people within the construction industry.
Discussions about the NewBuy guarantee scheme will also take place today which could potentially give buyers access to a mortgage even if they have a 5% deposit instead of the standard 10%.
The initiative is estimated to help 100,000 people who wouldn’t have been able to secure a mortgage and 50,000 people within the construction industry. Over the next three years it is hoped that more people will be able to own their own homes.
Prime Minister David Cameron spoke of the new improved schemes saying: “Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home.
“It's no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital. So we're working with leading house builders and lenders to get the scheme under way.”
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By Amanda Bainbridge