Does the Right to Buy extension make it possible for people to own their own home?

The news this week has been centered around the Prime Minister’s latest announcement; new plans are being put into place to help millions of people claiming Universal Credit to save money and buy their first home.

This comes as Boris Johnson stated he was making changes to “help working people who claim benefits to top up their low incomes,” following calls from industry experts to remove barriers that stop people on low incomes from saving money and having a mortgage.

The news comes as a welcome change, after months of families falling into crisis at multiple levels; food, debt, loss of employment, falling ill – some of which as a direct correlation between the spike in people’s household bills, with the cost of living soaring through the roof. However, we cannot help but wonder what does this mean for those unable to work? A large proportion of people in receipt of Universal Credit include those with disabilities, people unable to work due to care commitments, and those struggling to find work because of lack of accessible resources, opportunity and education.

Big Help Project’s advisory team commented on this week’s news, calling it “unrealistic”. The team deals with many clients in various different situations, and from different backgrounds. The advisory team said,

“Will a mortgage cost more than the rate of local housing allowance? Mortgages require a large deposit, and the amount of deposit determines the monthly payment - however those currently in receipt of Universal Credit and working won’t have savings more than £16k. The current rules in place will not allow for those on the benefit to have savings over £16k. This means that even if this new scheme disregards the current savings criteria, claimants would still be in a position where they would need to spend a significant amount of time putting money towards a deposit for a home; by which point the amount of affordable social housing will decrease. If this scheme ends, what will happen to those that do manage to save for a deposit to the sum of £16k? If they come to the point of owning property, but are still classed as low-income workers; could this mean that they will be unable to claim Universal Credit to boost their income?”

While it seems barriers that stop people on low-income from owning their own home are slowly being removed, the result this could have is disastrous. The Prime Minister said, “£30 billion in housing benefit that currently funds rent payments could be better put towards helping people take out mortgages.” We have to ask, is this the solution to an everlasting social housing crisis? How robust is this plan of helping people to own their own home? This can only work if plans are put in place for people who do not fit in to their mold of “hard-working” individuals, and discriminates against those who cannot work for health and other similar reasons.

Now more than ever, people are facing the worst economic crisis; the cost of simply surviving becomes more and more each year, and Universal Credit remains the same. With Right-to-Buy homes being extended to housing associations, affordable housing will become even more scarce. As we slowly move into the winter months, decisions need to be put in place that can secure the future of social housing, not debilitate it; homelessness is a huge social issue, and this new scheme could push more people further into crisis, and at-risk homelessness. The wait for social housing is already being at the brink of being unfit for purpose, the demand is too great within the ever-depleting market.

Big Help Project at its core is here to prevent people from falling into crisis, and help individuals to forge better futures free from the stress of food poverty and financial debt. We hope for more to be in place to help more people be able to own their property, and that the plans put in place are sustainable, long-term solutions; not just a quick fix to an ever growing social issue.