A report conducted by the Public Accounts Committee (PAC) has warned that the government’s plan to extend its Right to Buy policy lacks clarity.
In particular, the committee said not enough details had been provided explaining how the extension would be funded and whether suitable replacement homes would be built. It also warned that the move could increase the incidence of overcrowding for those in need of accommodation.
The extension of Right to Buy will allow Housing Association tenants to buy their own homes, with discounts similar to those of council tenants. However, the committee cautioned that there was a danger the increased discounts for Housing Association tenants would lead to a greater fund.
The report concluded that there was no assurance the replacement homes would be ‘like-for-like replacements, with some homes being a different size, in a different location and at a different rent price.
Meg Hillier, chair of the PAC, said the approach for paying the policy was too speculative.
She commented: “There are no costings or workings out. We are not talking about a 'back of an envelope' calculation - there is no envelope at all.”
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