Following reports of the RTB being subject to many changes and offers by various poiticians, our friends in Inside Housing reported on the following threat by landlords.
Inside Housing report:
Sector leaders would challenge any government attempt to extend the Right to Buy policy for housing associations in court.
The Conservatives are widely reported to be planning to include an extension of the controversial policy to housing association tenants in its forthcoming election manifesto.
Tony Stacey, chief executive of South Yorkshire Housing Association and chair of the Placeshapers group of 100 housing associations, said: ‘I would definitely challenge it legally. This is so fundamentally critical to us. It would shoot up to the top of our risk map if it was confirmed. We are duty bound morally to fight it in any way we possibly can.’
David Montague, chief executive of L&Q, said he ‘would be surprised if it wasn’t challenged legally’.
Housing association tenants can access the right to acquire – which gives less generous discounts – or preserved Right to Buy if their landlord’s stock was transferred from the local authority.
A Conservative spokesperson said the reports were ‘unconfirmed speculation’, but added ‘the PM has been a big supporter of Right to Buy’.
When asked by Inside Housing on Monday if a Right to Buy extension would be in the Conservative manifesto, housing minister Brandon Lewis responded: ‘It is very tempting to announce the Conservative’s housing manifesto this morning, but I will resist that urge.’
Gavin Smart, chief executive of the Chartered Institute of Housing, added that Right to Buy would ‘risk the viability of housing associations’.
Mr Montague warned that despite being ‘fully behind affordable home ownership’, he had ‘grave concerns’ about the reported proposals. Increased Right to Buy discounts could see asset values substantially decreased by lenders, he added.
‘For many of us in the sector, [that could] mean we’d default on lending agreements,’ Mr Montague said.
According to the latest polls, the Conservatives are unlikely to win an overall majority at the next election. Current coalition partners the Liberal Democrats want Right to Buy to be scaled back.