A Bournville reader has drawn attention to the research findings revealed in a BBC programme.

The BBC’s Shared Data Unit, used freedom of information requests and Land Registry data to obtain information on 92,000 Right to Buy sales across England, Scotland and Wales recording an average of £69,000 each from the scheme since 2000, according to the Times. The biggest profits were in London, with buyers in Islington making almost £100,000 each on average.

From the data gathered, it was calculated that 140 tenants bought and resold their council homes within a month, generating a collective profit of £3 million or £21,000 each.

In one case, a former council tenant in Solihull purchased his/her council home for £8,000 and sold it for £285,000 nine days later. Did s/he and others pay back some or all of the discount they received – as those who sell within five years of purchasing are required to?

State of play until 2013: source, Ampp3d, a data-journalism website for Trinity Mirror 

In January 2017, Right to Buy was halted in Wales, as it was in Scotland in 2016 after 37 years.

The devolved administrations argued that its cost to the social housing supply has been too great. Despite central government pledges to replace homes sold through Right to Buy, most receipts have been returned to the Treasury rather than reinvested in affordable housing.

The Financial Times noted that some 40% of right-to-buy homes pass into the private rented sector, where they may continue to absorb government funds through housing benefit.

The Chartered Institute of Housing once again repeated its call for Right to Buy to be suspended in England.

*

Our reader commented that George Cadbury encountered similar profiteering in the early days of Bournville and set up the Bournville Village Trust to administer the project. See Bournville, Model Village to Garden Suburb, Harrison pp 44 Publisher Phillimore, ISBN 1 86077 117 3.

Extract from Management and Organisational Behaviour by Laurie J. Mullins 

 

 

 

o

Advertisements