Welsh Labour’s intention to abolish the Right to Buy in Wales would deny the prospect of home ownership to tenants, and miss another opportunity to increase affordable housing supply and tackle the housing supply crisis created by Labour Government in Wales since 1999.
During the first three Assembly terms, Labour Welsh Government cut the number of new social homes by 71%, as waiting lists mushroomed.
By 2009/10, the Welsh Government had by far the lowest proportional level of housing expenditure of any of the four UK countries –
AND The 2012 UK Housing Review stated "it was the Welsh Government itself that gave housing lower priority in its overall budgets".
NHBC figures show:
- that although new UK home registrations rose 28% in 2013, Wales was the only part of the UK to see a fall.
- That new homes registered in Wales during 2014 lagged Scotland and all 9 English regions.
- That, at just 6,170, Wales was the only nation in the UK to decrease new homes registrations in 2015.
- That there was a further 4% slump in Wales in 2015/16, and a further 25% fall during the first quarter of this financial year.
Professor Holman’s report for the Welsh Government estimates that Wales needs up to 12,000 new homes annually, including 5,000 in the social sector.
Two 2015 reports completed for the house-building industry in Wales found that current levels of housing delivery are only just over half of identified housing need across Wales.
And September 2015, the Bevan Foundation said “that in order to meet anticipated housing need there needs to be 14,200 new homes created each year, including 5,100 non-market homes” - adding that “less than half the requirement is being met, with the biggest shortfall in social housing”.
This parallels the Federation of Master Builders call for an annual housing building target of at least 14,000 homes.
Despite this, Labour’s annual target is for just 4,000 affordable homes during this Assembly term – and that inflated by adding intermediate rent and low cost home ownership to Social housing.
The proposed scrapping of Right to Buy is a smokescreen and would not do anything to create more homes or increase the numbers of households with their own front door.
As the Welsh Affairs Committee found, the suspension of the Right to Buy would not in itself result in an increase in the supply of affordable housing.
By the time Conservatives left Government in 1997, Right to Buy sales in Wales were being replaced on an almost like for like basis.
The social housing grant under Labour is barely half the size left by Conservative Government in 1997, representing a massive cut after allowing for housing price inflation.
As the opening paragraph of the October 2014 “Homes for All” Manifesto states:
“There is a housing crisis”.
This crisis has been caused by Labour’s failure to build new affordable homes, not the Right to Buy, which has been emasculated under Labour and seen sales dwindle from the thousands to just a few hundred each year.
Instead, Welsh Conservatives proposed to reform the Right to Buy, investing the proceeds of Council sales in new social housing, thereby increasing affordable housing supply and helping to tackle Labour’s housing supply crisis.
This reflects the re-invigorated Right to Buy policy in England, where UK Government committed to re-invest, for the first time ever, the additional receipts from Right to Buy sales in new affordable rented housing across England as a whole.
If a council were to fail to spend the receipts on new affordable rented housing within three years, it would be required to return the unspent money to Government with interest – providing a strong financial incentive for councils to get on with building more homes for local people.
Since 2010 more than twice as much council housing has been built in England, than in all of the 13 years combined of the last Labour Government - when English waiting lists nearly doubled as the number of social homes for rent there was cut by 421,000.
As a Council tenant told me:
“The right to buy scheme offers us the opportunity to plan for a future without requiring state assistance…I urge you to do anything in your power to oppose the proposal to end the Right to Buy in Wales.”
Instead of traipsing out 30 year old dogma, the Welsh Government should be helping people like this and using every available tool to tackle Wales’ housing supply crisis.