PRS may prove attractive option to housing associations
Since 1980, an estimated 1.88 million council homes have been sold to tenants under the Right to Buy scheme. The government now intends to extend this scheme to housing association tenants. Although the government claims that every housing association home sold through Right to Buy will be replaced one for one, statistics from the original scheme give rise for concern. Of the 1.88 million council homes sold, only 345,000 local authority homes have been replaced. Given the discounts available to tenants both in London and across the UK, selling off housing association properties could deter investors financing housing associations and the ability of housing associations to obtain finance through traditional means. In order to make up for the financial losses incurred from Right to Buy sales, housing associations may turn their attentions towards the Private Rented Sector (PRS).
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