“Right to Buy” Proposal: Would It Work?
The Labour Party Leadership has proposed private tenants a “Right to Buy” just like what tenants in the social rented sector do. Before this, the leadership already announced indefinite tenancies and rent controls. Hence, this created an alarm in the property industry.
Under the said proposals, tenants are allowed to buy their homes at a price mandated by the government, regardless of its market value. This initiative is to get grips with the rapid increase in the buy-to-let market and lessen the problem of landlords who were unable to keep up with the maintenance of their rental properties.
These proposals brought negative reactions from the majority of the property industry. According to the Residential Landlords Association, the plans might push most of the landlords to sell-off their properties at once and might lead to the demise of the private rented sector.
The social tenants are privileged higher discounts the longer they stay in their rented homes and converting this to the private sector could not promote long-lasting tenants. It could only cost much to the industry.
This has not been developed yet into policy however, the property industry is standing by on whatever would be the outcome of the Labour Party conference and the future election.