Plans from the Mayor of London to increase the supply of housing to meet the needs of the capital’s growing population include backing for an innovative ‘right to buy part’ scheme, it was revealed this week.
The Mayor of London’s housing strategy, which was published this Monday, says:
“Hammersmith & Fulham is considering a ‘right to part buy’ scheme that offers the sitting tenant the opportunity to buy a 15 per cent share of their home. The Mayor supports the roll out of this kind of scheme across the capital, and will fund housing associations to offer such schemes to their tenants.”
Cllr Andrew Johnson, H&F cabinet member for housing, said:
“We are very pleased that the Mayor of London supports our pioneering initiative to bring home ownership to a wider group of council tenants with Right to Buy Part.
“Like the Mayor, we believe in the importance of good quality, affordable to buy housing and expanding the opportunities for homeownership, which is why we are ensuring that our tenants can buy a part share of their home.
“The original Right to Buy scheme has helped millions of hardworking people to get a foot on the housing ladder but in our borough, which has the third most expensive housing in the country, we need to go that extra mile.”
Under the scheme council tenants will be able to purchase 15 per cent of the house on which they will pay mortgage, while paying rent on the remainder of the property and paying a service charge representing 15% of the freeholder’s responsibilities.
They will also be able to receive a proportionate amount of the Right to Buy (RTB) discount, and can later buy a larger part of the property when they wish, until they own it outright.
When it comes to helping residents on to the housing ladder, H&F Council is leading the way nationally. The council’s Home Buy team has currently helped about 700 low- and middle-income earners into home ownership, with schemes such as shared ownership and discounted market sales.
Cllr Johnson continues:
“This is why we are trying to make home ownership a more realistic goal for our tenants. It’s very rewarding to see the GLA supporting our vision to create a ladder of housing opportunity and help our tenants purchase their homes in a manner that best suits them. We look forward to consulting with our tenants about details of the proposal soon.”