Angela Rayner pocketed a healthy £48,500 when she sold the council house she bought under Right To Buy.
In a significant policy shift, Deputy Prime Minister Rayner has proposed restricting the sale of newly built council homes under the Right to Buy scheme, a decades-old initiative that has allowed millions of social housing tenants, including her, to purchase their homes at a discount. Speaking to the BBC, Ms. Rayner indicated that new measures would aim to preserve England’s social housing stock to address what she called a “homelessness crisis.”
The Right to Buy scheme, introduced by Prime Minister Margaret Thatcher’s government in 1980, was designed to increase home ownership. Since its inception, over two million council homes have been sold to tenants, often at a significant discount. The policy was relaunched with additional incentives in 2012, and today, tenants can receive discounts of up to £102,400 across England or £136,400 in London.
Critics, however, argue that the scheme has depleted the nation’s affordable housing stock, contributing to rising homelessness. Labour, under Rayner’s leadership, has pledged to make the largest investment in social and council housing since World War II, with new builds kept firmly “within the system.” “We’ll be putting restrictions on them,” Ms. Rayner said, referring to new social homes, “so that we aren’t losing that stock.”
The government plans to launch a consultation on these proposed restrictions later this year, in a bid to strike a balance between the Right to Buy and the need to expand affordable housing. Labour has also proposed capping Right to Buy discounts between £16,000 and £38,000, depending on location—a stark contrast to the current discount levels. Additionally, last month’s Budget included provisions allowing councils to retain all proceeds from council house sales, reversing a previous requirement to share these funds with the Treasury.
Homelessness remains at a critical level in England. Recent figures show a record 4,780 people were seen sleeping on the streets of London between June and September, with numbers expected to increase as winter approaches. During a recent visit to a south London hostel, Ms. Rayner met with rough sleepers who have recently been taken off the streets, underscoring the urgent need for further support.
Among those Ms. Rayner met was Stephen Richards, 58, a former chef who has been homeless for several months. He described how soaring rental prices made it impossible to secure stable housing after a family breakdown left him without a home. “Years ago, a room in somebody’s house was called a lodger,” he said. “Now they’re charging £1,200 a month for a bedroom. Things are too expensive.”
In response, the government has earmarked £10 million specifically to address rough sleeping, targeting councils in areas with the highest need. This funding adds to the £233 million announced in the recent Budget to tackle all forms of homelessness, with the total set to reach nearly £1 billion by 2025.
“Homelessness is a catastrophic emergency,” Ms. Rayner stated. “Addressing it requires collaboration across multiple government departments, with an emphasis on prevention.”
Emma Haddad, CEO of the homeless charity St Mungo’s, expressed optimism regarding the government’s commitment to the Renters’ Rights Bill. The bill seeks to end Section 21 evictions, which allow landlords to evict tenants without providing a reason—a leading cause of homelessness in England. “Most people becoming homeless are coming out of the private rental sector, and Section 21 evictions are a large driver,” Ms. Haddad said. “It’s going to help dramatically.”
As Labour moves forward with its ambitious housing plans, the government’s stance on Right to Buy restrictions represents a marked shift from previous decades. With over 150,000 children currently living in temporary accommodation, and homelessness figures on the rise, the impact of these proposed changes will be closely watched as England grapples with one of the most pressing social issues of the day.
Why did Rayner buy her council house if she feels so committed to retaining council house stock? Why is it OK for her to benefit to the tune of £48,500 but then cap it for anyone else? Does she have any plans to repay the £48,500 or give it to a housing charity? Well, Angela…………?