The housing situation in the UK reflects deep political choices, notably influenced by the right to buy policy introduced by Margaret Thatcher. This policy has led to the sale of 1.9 million council homes at an average discount of 44% since 1980, costing local governments an estimated £194 billion in equity. The policy has shifted over 40% of these homes into the private rental market. While aimed at increasing home ownership and fostering an entrepreneurial spirit, it has restricted councils from using sales proceeds to rebuild public housing, exacerbating the crisis.
Since the introduction of the right to buy policy in 1980, 1.9 million English council homes have been sold at an average discount of 44% of market value, resulting in local councils giving up £194 billion in equity. This massive privatisation has transformed public housing into private rentals, with over 40% of sold homes now leased privately.
The right to buy policy is presented as a cornerstone of Margaret Thatcher's political agenda, amplifying the longstanding practice of councils selling homes from a discretionary action to a mandated process under the 1980 Housing Act.
The policy was designed to satisfy traditional conservatives aiming to expand owner-occupation and neoliberal objectives looking to encourage entrepreneurial spirit among the populace, reinforcing underlying political logistics.
Local authorities were allowed to retain only half of the proceeds from right-to-buy sales, creating a structural impediment to reinvestment in public housing and perpetuating the crisis.
Collection
[
|
...
]