Mr Johnson wants to take a similar approach nationally for housing associations, which are often independent of government. An estimated 2.5 million households – or around five million people – live in rented accommodation in England. The proposal is not entirely new – it was included in the Tories election manifesto in 2015. Greg Clark negotiated an agreement with housing associations when he was secretary of communities and local government. However, the momentum behind the movement weakened when Theresa May replaced David Cameron as prime minister following the 2016 Brexit referendum.
Prices could still be too high for the poorest tenants
The system will be similar to the municipal purchase right, where tenants can receive a discount of up to 70 percent of the market price, depending on how long they have lived on the property. A pilot project started in the Midlands in 2018. The Tories election manifesto in 2019 promised to consider new pilots, but no more has been announced. Critics questioned whether there would be an absorption, as prices could still be too high for poorer tenants, and said it would not solve the housing shortage. Another suggestion being developed by policy makers is for taxpayers’ money paid on housing allowance to be used to help recipients get on the housing ladder. The idea – in its early stages – is for banks to take into account the regular cash flow of housing benefits for poorer households, which may have limited income, by seeking mortgages. Robert Jenrick, who was Mr. Johnson’s secretary of communities until last fall, has given his support to expanding his right to buy real estate. Mr Jenrick told The Telegraph: “Now is the time to extend the right to all tenants. “The Conservatives should be the party of home ownership, and along with building more homes, finding new avenues for ownership should be at the heart of our mission.”
