Labour leader 鈥榲ery disappointed鈥 as housing associations back controversial roll-out

Jeremy Corbyn

The Labour leader Jeremy Corbyn has blasted housing associations for accepting a controversial roll-out of Right to Buy.

In an exclusive interview with 好色先生TV, conducted in his North Islington constituency last Friday, Corbyn said he was 鈥渧ery disappointed鈥 that housing associations were set to adopt the policy.

Yesterday the National Housing Federation (NHF) confirmed its members had 鈥 a result that was widely-expected when 好色先生TV spoke to Corbyn.

Corbyn attacked housing associations for increasingly acting 鈥渟olely as a housing company鈥 and said their properties should be retained 鈥渨ithin the social rented sector鈥.

He said: 鈥淚鈥檓 very disappointed if they decide to do this. Housing associations were formed to provide housing for people that need it, not to run themselves solely as a housing company - which is the direction they seem to be going in.鈥

Corbyn trumpeted shadow housing minister John Healey鈥檚 proposal - - of a 100,000 homes-a-year council housing building programme, which he said would have a 鈥渕assive鈥 beneficial impact 鈥渁ll the way down the building supply chain鈥 and on the public purse through a lower housing benefit bill.

Last week and - the Homes and Communities Agency, the Charity Commission and the National Audit Office - urging them to intervene to halt the policy.

The Charity Commission confirmed yesterday it is investigating the policy鈥檚 compatibility with charity law and said only 鈥渟ome鈥 of its concerns have been addressed so far.

Speaking at the Conservative party conference yesterday, communities secretary Greg Clark defended the right to buy deal with housing associations, saying: 鈥淲e鈥檙e extending the Right to Buy from council tenants to housing association tenants. In return, for every home that is bought by a tenant, we will ensure that a new one is built, doing the vital work of increasing the homes that we want.

鈥淓xpanding the mission of housing associations to become organisations that promote homeownership too and extending the opportunity of ownership to millions of people who have never had it before.鈥

Under the voluntary right to buy deal struck between Clark and the NHF, housing associations will be fully-reimbursed for any discounts offered under Right to Buy 鈥 paid for through the sale of high-value council homes.

Housing associations will retain exemptions under certain circumstances 鈥 for instance where a property is in a rural area and cannot be replaced, or where a home is adapted for special needs tenants 鈥 but in these cases tenants will be offered a portable voucher enabling them to buy another housing association home within its or another association鈥檚 stock.

Housing association bosses said the voluntary Right to Buy deal was the best availabe outcome, given the risk of the Conservatives legislating to impose the policy on the sector if the voluntary deal was rejected, which they feared could have resulted in associations being reclassified as public rather than independent bodies.

David Montague, chief executive of L&Q, said: 鈥淎 voluntary deal is better for housing associations as it involves greater flexibility. It reduces the risk of reclassification.

鈥淲e have a responsibility to support a manifesto commitment. We believe in home ownership and this is a better offer for our tenants.

鈥淭he biggest challenge now is to replace homes sold on a one-to-one basis. We need to get moving to put spades in the ground.鈥

Another housing association chief executive, who preferred to remain anonymous, said he voted to back the deal as the NHF struck a deal where 鈥渨e don鈥檛 lose asset value鈥 due to discounts being refunded by government.

But this source slammed the 鈥渏am jar accounting鈥 approach of selling off council homes to pay for it: 鈥淭o sell off council houses is wrong - it鈥檚 opportunistic. The sale of council homes comes from a value system which says an average person can鈥檛 afford it, so therefore why should a poor person live in it.鈥

A full interview with Jeremy Corbyn will feature in this week鈥檚 issue of 好色先生TV