Right to Buy extension will undermine housing associations, says TUC

Wednesday 27 May 2015

Commenting on the government’s commitment to extend Right to Buy to all housing association tenants, TUC General Secretary Frances O’Grady said:

“The TUC is deeply concerned that this measure will undermine housing associations and their important role in providing families with affordable homes. Housing associations fund new homes by borrowing against their existing stock, but if the government forces them to sell homes at a discount then it will cost more to borrow and they will be able to build less.

“We can’t trust the promise that any homes sold will be replaced on a one-to-one basis as a similar promise from 2012 on council homes has already failed – just one new council home for every six sold has been built.

“Instead of selling off affordable homes to the private market, the priority for housing really needs to be building more homes, and especially more social housing. We estimate that the UK needs to build 1.25 million new homes by 2020 just to stop the housing crisis getting worse.”

NOTES TO EDITORS:

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