A flagship Conservative council is set to announce a ‘right to part buy’ scheme, offering its tenants the chance to buy a 15 per cent share of their home.
Hammersmith & Fulham Council will present a proposal to its cabinet to offer tenants a shared ownership option under the right to buy scheme.
Andrew Johnson, cabinet member for housing in the west London borough, said buying a home outright under the current scheme was out of reach for most tenants, even with the £100,000 discount offered in the capital.
‘Giving council tenants the right to buy part of their council home brings the right to buy ladder down within reach,’ he said.
The capital raised would be reinvested in improving the council’s existing stock of 17,000 homes. A detailed proposal will be considered within the next few months. The council was unable to say if the shared owners would be offered a full £100,000 discount.
Sue Anderson, head of external relations at the Council of Mortgage Lenders, said prospective tenants should be cautious about their responsibility for maintenance costs. ‘If it’s a 100 per cent responsibility, that could be disproportionate for only a small level of equity,’ she said.
More than 10,000 council homes in England have been sold under right to buy since discounts were increased in April last year. Hammersmith & Fulham’s move comes as Hackney Council unveiled nine new homes which it is offering to tenants of social landlords under a shared ownership scheme.
Source: Inside Housing