David Cameron intends to let council tenants convert their rent payments into mortgage payments, under his new right to buy plans.
The Conservative party leader said that he wanted everyone to have the opportunity to “own houses and have an asset for life”. He went on to say: “Right to buy was about creating mixed communities. It made Britain more socially mobile and improved neighbourhoods. This scheme could create a new generation of home owners”.
Our views
Mr Cameron’s basic objectives is commendable. For those council tenants that want to buy their homes, anything that makes it easier will be a bonus. However, the more people that purchase the less property there is available to tenants and this could be a problem.
As with most things, Mr Cameron’s plans won’t suit everyone but will give opportunities to others.
Our concern is that some tenants may not be able to obtain main-stream mortgage funding, so the Tories will have to come up with a way of underwriting them without bias to non-council tenants who also want mortgages.