The government has admitted that “most” people will not benefit
from the housing policy announced by earlier this month to boost
homeownership.
On 9 June, the Prime Minister announced plans to allow recipients
of housing benefit to use welfare payments towards the cost of a
mortgage. The plan, which formed the centrepiece of his offer to
first-time buyers, was roundly criticised as anybody with savings
of more than £16,000 will be ineligible under Universal Credit
rules.
In answer to a written parliamentary question from Labour’s Lisa
Nandy, the Department for Work & Pensions has now admitted
“that it is likely most will not be in a position to take up the
new policy”.
The Department for Levelling Up, meanwhile, has refused to
confirm that an impact assessment was carried out before the
Prime Minister announced an extension of the Right to Buy scheme
to housing association tenants. This comes after reports that
privately accused Downing
Street of “bouncing” the policy before it was ready, to distract
from the vote of no confidence in the Prime Minister just days
before.
Gove’s department also refused to say that they had assessed the
impact that the Right to Buy extension will have on the total
stock of social housing, or how many new homes will need to be
built to meet their promise to replace houses sold off.
, Labour’s Shadow Levelling Up
& Housing Secretary, said:
“If ever you needed proof that this tired government is out of
ideas, this is it. Homeownership rates have plummeted under the
Conservatives. Now we learn that even Boris Johnson’s own
government doesn’t think his plan to fix it will work.
“We need far more ambition if we’re to solve the housing crisis
and give families the security of owning their own home. That’s
why Labour has plans to build more affordable homes, link the
definition of ‘affordable’ to local wages, and give first-time
buyers first dibs on new developments.”
Ends
Notes
Written parliamentary questions:
reportedly felt
“bounced” into the policy.
A Right-to-Buy pilot scheme launched in 2018 found that this
policy would only help around 17,000 families a year; many
promised replacement homes were not built; and many of those that
were, were smaller and less affordable than the houses they
replaced:
Analysis of English Housing survey data found that
211,000 fewer people of working age were homeowners in 2020-21
than in 2009-10, while in the same period rates of private
renting have shot up, with 955,000 more people between the ages
of 16 and 64 now renting, a rise of 31% on 2010 levels.
