Labour abolishes Right to Buy plans
The Labour Party has reportedly committed a U-turn by withdrawing its Right to Buy plans from its manifesto, The Financial Times has reported.
The plans to give tenants the chance to buy their privately rented property off their landlord at a discounted price received widespread criticism from brokers and lenders specialising in buy-to-let and the Residential Landlords Association.
Earlier this month Labour’s Shadow Chancellor John McDonnell, amended the plans, saying that the policy would only apply for the wealthiest landlords and not those who own one or two properties.
Payam Azadi, director of Niche Advice, was not surprised by the party ditching the plans altogether.
He said: “They were trying to enforce rules to the private sector where it’s totally different.
“I didn’t’ think it would be practical because how are you going to incentivise landlords holding those properties to sell?
“Ultimately it all comes down to incentives. Buyers would be incentivised to buy with a huge discount but unless that was mirrored I couldn’t have seen it working because you’re essentially telling landlords to sell.
“I couldn’t see how the landlord would have been incentivised.
“It’s election time and everyone is promising all sorts of things that they can’t deliver.”
Adrian Knott, chief executive of AK Partnership, added: “I think that’s a wise policy decision to drop the Right to Buy plans. How could they possibly enforce it?
“It’s definitely a vote winner for them because Labour is struggling as it is in this election race with Jeremy Corbyn becoming more unpopular by the day it seems and that was just another nail in the coffin for him not winning this election.
“Trying to get private landlords to have the option for their tenants to buy is just not workable and a vote loser.”