With the government extending the Right To Buy scheme, councils across the United Kingdom know that they are going to have to find additional funding to meet these plans in full. When you consider that many local councils around the country are already struggling for money, this is the last thing that many councillors want to hear. However, new research that has been undertaken by Shelter suggests that many councils will face a bill in the millions and Stockport could have to pay out £26m in this new scheme.
This can be placed alongside Manchester facing a bill of £59m per year, Wigan having to cough up £43m and Salford having to pay out £18m on an annual basis due to the Housing and Planning Bill. This bill is currently being put through Parliament and it would see local authorities being forced to sell of an element of their council homes. Once these properties became vacant, they would be placed onto the open market and then proceeds from any sale would be utilised to fund discounts for housing association tenants who are looking to take up their Right To Buy. The discount can reach up to £100,000 for each tenant looking to buy a home, so it is easy to see that this would add up very quickly.
Will there be any fallout on the Stockport property market?
There are serious concerns that this plan will have a big impact in the availability of affordable homes in affected areas. This is something that will have to be examined in Stockport. There has been a lot of positive news for Stockport in recent times with a number of local developments providing optimism for the regeneration of the area, but if the concerns surrounding this new scheme comes into play, you can see why many people will be looking to evaluate their presence in the Stockport property market.
At Spencer Harvey, we understand the Stockport property market and if you have any concerns about changes arising from this situation, or indeed any situation, come along and speak to us. We are more than happy to arrange an appointment and when it comes to the Stockport property market, we are second to none.
As with so many things at the moment, the government is in dire need of funding, and it is likely that local councils will be squeezed as hard as possible to make up the shortfall. This is definitely an area that Stockport Council has to act upon and there will likely be a rise in local residents asking questions and demanding answers on what impact it will have on the local property market.
For all your property needs, please contact Spencer Harvey Estate and Letting Agents on:
0161 480 8888
https://www.spencerharvey.co.uk