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News Release

London

JLL responds to Labours pledge to scrap right-to-buy policy


​London, 26 September 2016 – Labour have stated that they would cease Right to Buy in England if they were elected to power. Scotland and Wales have already done this.

Neil Chegwidden, Director in Residential Research at JLL, comments: “This may come as a disappointment to some longer-term prospective buyers but is likely to lead to a mini-surge in Right to Buy purchases, especially if an early General Election looks likely, and certainly in the 2-3 years before the planned election in 2020.

More than 47,000 households in England have bought their home under the Right to Buy scheme over the past five years, with the numbers notably higher over the past 2-3 years since the economy and the housing market has picked up. This looks set to rise further over the next 2-3 years as households buy prior to the General Election especially as more tenants now have the right to buy since the scheme was opened up to Registered Provider (Housing Association) tenants.

The cessation of this policy will be good news in terms of social housing provision and the headache in terms of replenishing the lost stock. It may also relax the stance of councils in terms of affordable housing provision through Section 106 agreements which could consequently support greater housebuilding, although this impact is likely to be minor given the undersupply of housing we have in this country.”