Tories to privatise all housing in Manchester


The Conservative government policy is to privatise ALL housing in Manchester?  What am I talking about?  A 2 minute read explains what is stated government policy!

  1. The Conservative policy is to extend the right to buy to housing association tenants.
  2. The discounts the HA tenant receives is paid back to the housing association by the Conservatives
  3. To get that money to pay back – £4.5 billion per year – the Conservatives are forcing the sale of 15,000 council houses per year each with an average value of £300,000.
  4. That is 75,000 ‘high value’ council houses forceably sold in this parliament that could accommodate the 395,000 population of Manchester

It also means that council housing will have 75,000 fewer properties and also means that social housing (council and housing association) capacity MUST fall by at least 75,000 in this parliament.

A report today by JRF says that the HA RTB extension known as RTBe  COULD see 75,000 fewer yet this report MUST be fundamentally flawed.  It says in opening:

The report, Understanding the likely poverty impacts of the extension of Right to Buy to housing association tenants, estimates that there will be 75,000 fewer low-cost homes becoming available to let over the next 5 years if the homes built to replace those sold are available as shared ownership rather than as low-cost rentals.

This refers to the issue of whether housing associations replace their homes sold with rented properties at a social rent level.  Yet if completely ignores the bloody obvious that 75,000 social homes – the council housing forceably sold off to fund the housing association tenant discounts – which MUST and CAN ONLY MEAN that 75,000 social sector houses have ALREADY been sold and already taken out of the overall social housing capacity.

That existing 75,000 forced sales of council houses means the starting point for English RTBe (it does not apply in Scotland or Wales) is at MINUS 75,000 and any further reductions such as HAs replacing the properties they sell with shared ownership or direct private sale or for private renting ADD to the MINUS 75,000 social housing capacity figure.

Moreover, each of the 15,000 council houses per year forceably sold is NOT expected to be replaced until year 3 of the programme.  A 3 year time lag between being sold and being replaced and so that is a reduction in the social housing capacity of  between 30,000 and 45,000 before replacements begin.  Or enough to house a city of 225,000 men woman and children!

Unless of course JRF are aware of some other funding for this £4.5 billion per year giveaway by the Conservatives.  Or unless JRF believes the Conservatives claim that 2 replacements for each sale will happen!

On that latter point I have been running a poll here asking if anyone believes the RTBe will have a 1 for 1 replacement never mind a 2 for 1 and the current response is that over 90% do not believe the RTBe will achieve a 1:1 replacement.

In summary, Conservative policy does equate to privatising enough council housing to accommodate every man woman and child in Manchester and is costing you the taxpayer £4.5 billion per year and can ONLY reduce the capacity of social housing, that this same Conservative government tells us has 1.4 million families on the waiting list and they must do something about (!!) and telling us how wonderful right to buy is!!



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