Under the original proposals the Government were proposing that the maximum discount on buying your council house or flat would be £50,000. That figure has been increased to £75,000. The new discounts will begin from April 2012.
Under the Government plans a long term tenant can buy their council flat for just 30% of its market value and a council house for just 40% of its market value.
The increased level of discounts further undermines the Government’s claims that for every property that is sold under their Right to Buy plans, a new property will be built.
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Steve Murphy, General Secretary of construction union, UCATT, said: "With the level of homelessness rocketing, the Government should be maximising investment in new homes to deal with the growing crisis. Instead they are intent on further undermining their already flawed scheme."
Last month UCATT revealed that the Government's claims that they would build a new property for every home sold under the new Right to Buy rules, were a fabrication. The Government scheme will not build a single new property until 12,700 properties have been sold. The 12,700 figure is the number of properties the Government had anticipated being sold by 2015 under existing arrangements.
UCATT said: "By further increasing the maximum level of discount the Government is decreasing the level of receipts generated. The higher level of discounts will increase the number of sales where receipts will be below £60,000, the average cost of building a new home. The high cost of land further increases the cost of building new replacement properties.
"The increase in discounts will further fuel Right to Buy sales in London and the South East. Due to very long waiting lists and a shortage of properties, discounts in these areas are currently capped for most authorities at £16,000."
(CD/GK)
