‘Right-to-buy’ scheme temporarily suspended

Wednesday 8th April 2009

More than 33% of council house tenants in Stirling (Scotland) have lost the right to buy their properties a recent report has revealed.Right-to-buy scheme temporarily suspended

Previously offered the opportunity to invest in their council houses at a discount price. This deal has now been temporarily removed to help accommodate the growing social housing shortage.

Instead these properties shall remain available to those who are on a lower income, thus ensuring that there is always social housing for those who need it.

However, Stirling are not the first local authority to implement these kind of changes.

They are one of twelve local authorities who have taken this deliberate step towards suspending ‘right to buy’ schemes in order to increase their social rental stock.

Why the sudden change of heart?

Since the ‘right to buy’ scheme was first introduced to council house tenants, more than 4,734 homes have been bought and taken off the market – a loss of 63% of their original rental stock.

In light of this revelation, the Scottish Government have suspended this offer across 35 letting areas, which they have deemed as being ‘pressurised’.

Areas facing these changes include:

    Rural areas to the west and north of the M9/A9
    Dunblane, Bridge of Allan and Causewayhead/Logie
    Stirling, Riverside, Broombridge, Braehead and Newhouse/lower St Ninians area
    Bannockburn, Whins and Hillpark/Firs

By relieving these areas, the government strongly believe they will be able to boost the economy and in turn the property market.

How does the suspension work?

The rulings surrounding this suspension are simple – only those who have entered into tenancy agreements after 30th September 2002 will have to wait 5 years (from the moment they sign the agreement) before they can invest in their properties.

Essentially affecting 245 tenancies with immediate affect, and over 1,349 tenancies during the next 5 years.

How can this information affect your investment choices?

This scheme may currently only be taking place in Scotland, but the statistics are still the same – there is a growing need for social housing across the entire breadth of the UK.

Something which as a property investor you can support, harness and utilise into the expansion of your property portfolio.

Interested in learning more about how property investment can supplement the social housing market? Why not come along to the 2 hour taster session to find out more.

Click here to book your free Property Mentor Taster Session

or

See what will you learn from Property Mentor free course