New Right to Buy discounts for buyers in England announced by Labour

A Right to Buy mortgage scheme that gives a huge discount on homes is being cut after the Labour Party Budget. Right to Buy currently gives those living in council properties a discount of up to 70% of the market value of their home, up to a maximum of £102,400. For homes in London, the maximum discount is £136,400.

But the discounts will shrink from a maximum of 70% to 25%. Speaking to the House, Ms Reeves said the Government would provide investment on housing, telling the Commons: “We will increase the Affordable Homes Programme to £3.1 billion, delivering thousands of new homes.

“We will provide £3 billion of support in guarantees to boost the supply of homes and support our smaller housebuilders. And we will provide investment to renovate sites across our country, including at Liverpool Central Docks where we will deliver 2,000 new homes, and funding to help Cambridge realise its full growth potential.”

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Ms Reeves also acknowledged the need to increase the supply of affordable housing, saying: “Having heard representations from local authorities, social housing providers and Shelter, I can today confirm that the Government will reduce Right to Buy Discounts and local authorities will be able to retain the full receipts from any sales of social housing so that we can reinvest back into the housing stock and into new supply.

“By doing this we will give more people a safe, secure and affordable place to live. We will provide stability to social housing providers, with a social housing rent settlement of CPI plus 1% for the next five years and we will deliver on our manifesto commitment to hire hundreds of new planning officers to get Britain building again.

“We will also make progress on our commitment to accelerate the remediation of homes following the findings of the Grenfell Inquiry, with £1 billion of investment to remove dangerous cladding next year.”