Boris Johnson reveals housing association tenants to have access to Right to Buy scheme

The Prime Minister has announced that 2.5 million tenants renting their homes from housing associations will be given the right to buy them outright.

In a speech on Thursday, the PM confirmed that the scheme, which has made homeownership a reality for two million households since the 1980s will be extended.

Tenants in council homes are currently eligible to buy their properties at up to 70% off the market value depending on how long they have lived there. 

Boris Johnson extends Right to buy scheme to Housing Association tenants

Rows of houses. Credit: PA

Mr Johnson said:" Just as no generation should be locked out of home ownership because of when they were born, so nobody should be barred from that same dream simply because of where they live now.

"For four decades it has been possible for council home tenants to use a discount to buy the property they live in.

"Over that time almost two million people have been helped into home ownership. They have switched identities and psychology, from being dependent on the state for every repair – from damp-proofing to a new front door – to being in charge of their own family home, able to make improvements and add value as they please."

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Boris Johnson pledges mortgage finance review for first-time buyers

The Government is also launching an independent review of first-time buyers' access to mortgage finance.

The aim of the review is to help make it easier for this group to access low-cost, low-deposit finance such as 95% mortgages.

This is set to be the first comprehensive review of the mortgage market for a decade.

The PM added:"We have a ludicrous situation whereby plenty of younger people could afford to make monthly mortgage payments – they’re earning enough to cover astronomical rent bills – but the ever-spiralling price of a house or flat has so inflated deposit requirements that saving even just 10 per cent is a wholly unrealistic proposition for them.

"First-time buyers are trying to hit a continually moving target. And of course the global rise in the cost of living is only making life harder for savers.So we want it to be easier to get a mortgage.

The review is expected to be published in the Autumn.

In the announcement, Mr Johnson also pledged to turn ‘benefits to bricks’ by changing welfare rules so that the 1.5 million people who are in work but also on housing benefits will be able to choose to use their benefit towards a mortgage.

Currently, it automatically goes directly to private landlords and housing associations.

Levelling Up Secretary Michael Gove MP. Credit: PA

Levelling Up Secretary Michael Gove MP said: "Today we are extending the opportunity of homeownership to millions more hardworking people across the country.

"By extending Right to Buy and bringing forward the most comprehensive review of the mortgage market in decades, we are backing first-time buyers, breaking down barriers to homeownership and delivering on the people’s priorities.

"At the same time, we will continue to deliver much-needed new, good quality social homes by replacing each and every property sold."

The government is also changing the rules to encourage those who are claiming Universal Credit to save for a deposit.

Under current welfare rules, the amount of Universal Credit tapers when a person claims savings that exceed £6,000 and they stop entirely when they surpass £16,000.

The government is committing to the exemption of Lifetime ISA savings from these rules so that people can save for a first-time home deposit without their Universal Credit payments being impacted.