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Right to Buy discount halved

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Right to Buy: Not what it was!

Right to Buy: Not what it was!

IT WAS ANNOUNCED last week that the Welsh Government had halved the maximum discount available under the Right to Buy scheme in an attempt to ‘protect the social housing stock’.

Earlier this year Communities Minister Lesley Griffiths announced her intention to end the scheme, which has been in existence since the early eighties when it was introduced by Michael Heseltine, Margaret Thatcher’s Environment Minister as part of the Housing Act (1980).

It is hard to think of a single policy which has been so divisive over the last three decades. It is, in effect, an ideological issue; with Free Market proponents on the one side advocating the power and responsibility taken from the state and given to the individual. Opposing this are critics who point to the drastic reduction in social housing over the time period, and the corresponding increases in homelessness and the use of public money to pay private landlords.

In Wales, 138,709 council-owned homes were sold under Right to Buy between 1981 and 2014 – leading to a reduction in the social housing available of 45 percent. Nationally 42% of the population lived in council housing in 1979 – by 2008 this had dropped to 12%.

The sale of council housing was originally meant to provide funds which would enable local authorities to pay back loans and build new properties. However, restrictions were placed on the proceeds of the sales, and councils found that they could not build any new social housing until these loans had been paid off. House building by local authorities in England and Wales dropped dramatically during the eighties, and has never recovered.

The Labour Government initially opposed the policy, but changed their position in 1985. Tony Blair’s government introduced caps on the discount available in areas short of social housing, and in 2005, the rules were changed to stop former tenants selling on the open market immediately after purchase. A five-year minimum residency before becoming eligible for the scheme was also introduced.

The policy was initially very popular among council tenants, and it was considered to have played a major role in Margaret Thatcher’s landslide victory of 1983, when in 1980 she had the lowest approval rating of any prime minister since records began.

However, repossession rates were notably higher than those for people taking out private mortgages, and homelessness across Great Britain trebled over the eighties. Another bone of contention for those opposed to Right to Buy concerned the burgeoning buy to let market, which in many cases saw ex-council housing stock rented out at considerably more than the local authority charged.

Because most of the council housing purchased was of good quality, and as a result of housing shortages leading to applicants being prioritized on the basis of need, many tenants found themselves living in areas of increasing social deprivation. Cuts to council maintenance budgets, and a dramatic increase in council rents contributed to this on a national level, and to some extent made Right to Buy a self-fulfilling prophecy for those who could afford it. By the mid-nineties, 95% of council tenants qualified for means-tested benefits.

There has been a rise in the number of social housing sales in Wales over the last five years, with 544 properties sold last year. In response to this, the maximum discount has been reduced to £8,000 from £16,000. Commenting on this, Lesley Griffiths AM said that “Right to Buy is depleting our social housing stock.

“This damaging policy is further increasing the pressure on our social housing supply and is forcing many vulnerable people to wait longer for a home,” she added.

“This is why the Welsh Government has taken decisive action to protect our social housing and make sure it is available for those who need it most. Today is a significant step towards our eventual goal of abolishing the Right to Buy and Right to Acquire in Wales.”

The Conservatives, unsurprisingly, disagree with this. Speaking earlier this year, Shadow Assembly Housing Minister Mark Isherwood said that the move ‘flies in the face of aspiration and ambition. It will limit supply and deny people in council properties the choice and power to buy their own home’.

Mr Isherwood announced the intention of the Welsh Conservatives to extend Right to Buy: “We would invest all the sales proceeds in new social and affordable housing to help tackle Labour’s housing supply crisis and take households off their record-breaking waiting lists,” he added.

“Scrapping the right to buy is further proof that it’s anti-aspiration; stuck in an ’80s socialist dogma where it believes the government knows best – not the individual. We must use every tool in the armoury to increase housing supply in order to make housing more affordable.”

Whether selling off social housing in order to make money which could potentially be used to build more is a viable solution to these ‘record-breaking waiting lists,’ or indeed whether the aforementioned 45 percent reduction in available social housing could have had anything to do with the current housing shortage remains unclear.

This also fails to take into consideration people living in social housing that is not covered by Right to Buy, and indeed the large number of people renting from private landlords, often because of a shortage of council housing.

In England, the Conservatives have announced proposals which would extend Right to Buy across all areas of social housing. However, the social housing provider would have to be compensated, thus meaning that the discounted price would have to cover the cost of a new equivalent house. This is meant to be funded through local authorities selling off their more expensive council houses when they become vacant, but research has shown that outside of London the figures often fail to add up.

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Senedd debates UK Government’s ‘disastrous’ first six months

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THE CONSERVATIVES criticised the UK Government’s record six months on from the general election, accusing Labour of doing “not a dickie bird” to stand up for Wales.

Darren Millar, leader of the Tories in the Senedd, said people were told Labour governments at both ends of the M4 would be great for Wales in the run up to July’s election.

But he warned: “What we’ve actually ended up with is a double whammy: broken promises and failing policies … alongside a passive, silent Labour Welsh Government unwilling to offer a squeak of criticism or lift a finger to defend the interests of the people of Wales.”

Leading a Tory debate, he said the new UK Government has hit farmers with inheritance tax, taken winter fuel allowance from pensioners and hiked national insurance for businesses. 

Mr Millar told the Senedd that Welsh railways remain underfunded as he accused Labour of settling for “scraps” despite previously calling for billions of pounds from HS2.

Peter Fox, the Tory shadow rural affairs secretary, warned farmers have to deal with Labour governments “who either do not care or do not understand the needs of rural communities”. 

Mr Fox, a farmer and former council leader who represented Monmouth since 2021, criticised changes to agricultural property relief by the UK Government.

“It’s not a loophole,” he said. “It’s a carefully designed policy … to protect Britain’s family farms from being broken up.”

His colleague Natasha Asghar, who represents South Wales East, described a -45% approval rating for Keir Starmer’s government as “a tad generous”.

She said: “If this is just what the first six months of Sir Keir’s premiership look like, I sincerely dread to imagine what the next six months have in store for all of us.”

Mark Drakeford said the Conservative motion in front of the Senedd concentrated entirely on matters outside the Welsh Parliament’s responsibility.

Following the debate on January 15, Senedd members voted 26-24 against the motion with Labour’s amended version agreed by the same margin.

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Welsh Government ‘in the dark’ on £109m tax rise cash

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THE WELSH GOVERNMENT remains in the dark about how much Wales will receive to cover the estimated £109m cost of tax rises in the public sector, a committee heard.

Jayne Bryant said the UK Government has confirmed it will provide funding to public-sector employers towards the increased cost of national insurance contributions from April.

But Wales’ local government secretary said ministers expect to receive additional funding in ‘late spring’ and have not yet received confirmation of how much Wales will receive.

Plaid Cymru’s Siân Gwenllian raised concerns about the impact of tax hikes as the Senedd’s local government committee scrutinised Welsh ministers’ 2025/26 spending plans.

Judith Cole, deputy director of council finance policy, said the Welsh Government estimates the cost of the tax hike to the public sector in Wales at £109m.

Asked how funding will be divided between councils, Ms Cole said the standard funding formula could be used or it may be based on a proportion of spending as in England.

But she stressed that other factors need to be taken into account because, for example, some councils will provide more services by directly employed staff.

Reg Kilpatrick, director of local government, added: “We’re entirely dependent on the negotiations between the cabinet secretary for finance and the UK treasury.”

Ms Gwenllian warned of the impact of tax hikes on the voluntary sector and outsourced services, piling more pressure on council budgets.

She said: “I’ve spoken with three councils … but one said that this will cost an additional £2m in terms of internal salaries but £2.5m in terms of the work that is commissioned.

“Another council said £5.4m on the internal, £2.8m on the work that is outsourced – another said £8m internal and £3m on the outsourced work. There is a lot of work commissioned beyond the local authorities themselves and there is no mention of any support.”

Giving evidence on January 15, Ms Bryant said the UK Government has confirmed it will use the Office for National Statistics definition of a public sector worker.

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Candidates for Haverfordwest’s Prendergast Ward council seat

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A SIX-WAY battle to contest a Pembrokeshire seat made vacant following the resignation of local county councillor Andrew Edwards during the Christmas period is to take place next month.

Unaffiliated county councillor for Haverfordwest’s Prendergast Ward Cllr Edwards had previously been a Conservative group member, leaving in 2023 when serious allegations of racist ‘slave’ comments emerged, following a recording where he was alleged to have said every white man should have a black slave.

Following that allegation Mr Edwards, a former magistrate and a school governor, withdrew from the political group and referred himself to the Ombudsman for an independent evaluation.

Cllr Edwards, who became a councillor in the 2022 elections, neither confirmed nor denied the allegation when previously asked by the Local Democracy Reporting Service.

Since then, Cllr Edwards has tendered his resignation over the Christmas 2024 period saying his position is “untenable” due to “family matters”.

Following Mr Edwards’ resignation, notice was given by Chief Executive William Bramble of a casual vacancy for the county councillor position for the ward, and six candidates have thrown their names into the hat to represent the ward, the election to take place on February 11.

The candidates are: Kaleb Jenkins, Liberal Democrats; Mike Mathias, Conservative; James Purchase, Green Party; Scott Thorley, Reform; Alison Tudor, Labour; and Alun Wills, Independent, with further nominations now closed.

Poll Cards will be sent to electors before the election. The polling station will be at Pembrokeshire Archives, not Meadow Park Day Centre as has been previously used in recent years.

Photographic ID will not be required to vote at this election.

Applications to register to vote must reach the Electoral Registration Officer by 12 midnight on January 24; applications to vote by post or alterations to existing arrangements for postal voting, must reach the Electoral Registration Officer by no later than 5pm on January 27.

Applications to vote by proxy must reach Electoral Registration Officer by no later than 5pm on the February 3.

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