New government figures show that Right to Buy has created nearly 40,000 new homeowners in the last three years, after discounts were increased under the coalition government.
The figures also show that a total of 3,644 new starts and acquisitions have been made since Right to Buy was reinvigorated in 2012, resulting in 3,054 additional homes sold in the first year of the scheme being replaced on a one-for-one basis nationally.
Since the reinvigoration of the Right to Buy scheme, nearly £964 million in sales receipts have been re-invested into building new homes, levering a further £2.2 billion of investment over the next 3 years.
In total, more than £3.2bn will be raised to invest in affordable house building as a result of increasing Right to Buy discounts.
Housing Minister Brandon Lewis said:
“For years, the discounts available under the Right to Buy were left to dwindle, denying thousands of people the opportunity to own their own home.
“This reinvigorated scheme has turned that around, and means nearly 40,000 people have been able to buy the home they love – many of whom might otherwise never have had the chance to become homeowners.
“On top of that, it’s getting homes built, with councils replacing the additional homes sold on a one-for-one basis.”
Local authorities have received approximately £223m from Right to Buy sales, the figures show – 5% higher than the £212m in the same quarter in 2014-2015.
Since 2010, the government has introduced other measures to support those wishing to buy their own home – including the Help to Buy scheme, which has enabled nearly 120,000 people to buy a first home with a small fraction of the deposit normally required.
The government says that, since 2010, a total of 232,000 households have been helped to buy a home through government-backed schemes such as Help to Buy and Right to Buy.
The government has also pledged to build 200,000 new Starter Homes, which will be available to young first-time buyers under the age of 40 at a 20% discount.
A new Help to Buy ISA will also help aspiring homeowners to save up a deposit for a new home. Under the Help to Buy ISA, first-time buyers will be able to save up to £200 a month towards a deposit on a new home, with the government boosting savings by 25%.
Help to Buy ISAs offer savers a £50 bonus for every £200 saved up to £3,000 – the product will be launched at banks and building societies this autumn.
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