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The Right to Buy: History and Prospect The Right to Buy: The new proposals are to sell high value council housing to finance replacement dwellings. As with the Right to Buy in previous years better off tenants living in more desirable properties and places are most likely to gain.
Proposals were greeted with alarm by housing associations, but under a subsequent agreement housing associations have agreed to a voluntary Right to Buy scheme still financed by high value council properties.
Proposals to extend the Right to Buy revive questions debated earlier in the history of public housing, over the loss of relets, the long term costs of dismantling the public and social rented sector, the expansion of private renting and the costs associated with this and the effect in increasing housing stress and segregation.
The extraordinary levels of discount associated with the Right to Buy are brought into increased focus because public funds will be required to finance their extension to housing associations. Introduction The origins of public housing in the UK are rooted in the nineteenth century but it is only after that central government subsidies enabled the development of substantial council housing.
One million council houses were built in England between and But not all local authorities were enthusiastic builders and even those that did build were not always accepting of the fact that councils should stay in the business of providing housing. Some critics regarded municipal participation in housing provision and managing property as undesirable.
Unsurprisingly some local authorities explored powers to sell their housing. Legislation had included provision for such sales but, because councils had received subsidy from the exchequer, any sales required consent from the Ministry of Health.
This was rarely forthcoming.
Small numbers of sales proceeded, but many foundered because prices were too high to attract buyers and the Board of Health was unwilling to approve low value sales. The occasional sales between and were halted by wartime restrictions and Labour governments after resisted proposals for sale.
The Conservative government elected in altered the approach. The Housing Act repealed the requirement in the Housing Act that the local authority obtain the best price at sale and granted power to restrict resale or reletting.
Following this the Minister for Housing and Local Government provided the first of a series of general consents, published between and Continuing concern was expressed over potential underpricing of public assets; policymakers sought an appropriate basis on which to determine sale prices.
This was resolved inwith the insistence on market-value based pricing that has applied ever since. It was largely in place inbut did not prove an asset in the two general elections that year because of high interest and mortgage repayment rates, as well as the growth of negative equity as house prices fell.
Electoral defeat delayed the policy rather than acted as a catalyst. After the election of May a new Conservative government drafted legislation to provide a Right to Buy but, because this would not become law until Octoberalso revised the general consent May to enable sales with higher discounts matching those proposed in the new legislation.
The numbers of sales completed under this general consent exceeded previous levels. Between and overpublic sector dwellings were sold in England and Wales. Almost a third of these were in and and it is evident that higher discounts generated and would have continued to generate higher sales without the Right to Buy being in place.
The statutory procedure for selling freeholds of houses and leaseholds of flats severely limited local variation over implementation and the Secretary of State had very strong powers to monitor and intervene.
Sale price was a discounted market valuation taking account of years of tenancy in any relevant dwelling: If resale took place within a fixed period initially 5 years a pro rata repayment of discount was required. There was a legal Right to a Mortgage, detailed conditions for purpose built dwellings for elderly or disabled households and largely ineffective arrangements to restrict the resale of properties in designated rural areas in the interests of local residents.Download a research paper example online, as it may greatly help you to build a proper structure; Use lively language.
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