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Labour local branch pledges limit on Right to Buy rents
Southwark’s Labour Party has promised to force future leaseholders of Right to Buy flats to charge affordable rents when letting their property, as local parties set out their housing pledges in the run-up to May’s council elections.
All 32 London boroughs and Manchester, Leeds, Birmingham and Newcastle will have full council elections on 3 May.
Southwark Labour’s manifesto contains a pledge to place covenants on the leases of all future properties sold under Right to Buy prohibiting leaseholders from renting them out at anything above affordable rent.
Melanie Dirom, head of housing and leasehold management at law firm Croftons, told Inside Housing: “I can see why they would want to do that, that it would make good sense to keep it within the affordable arena. That’s all very positive and social-minded.
She pointed out, however, that it may dissuade future buyers. “Just thinking of future buyers, they may be put off by it. And how’s it going to be policed? Would they be looking to get copies of tenancy agreements with any future tenants? It’s a lot of work to be done and they’re going to be relying on them to get the information.”
Labour and Conservative branches from 10 council areas have pledged to directly deliver 8,850 council homes in total over roughly five years.
Labour Party branches promised to ensure that up to 50% of new housing stock will be “genuinely affordable” in the majority of the councils up for election.
Conservative branches have also pledged to increase housing stock and tackle homelessness, but Croydon Conservative Party said that the housing target of 14,328 homes over 10 years that mayor of London Sadiq Khan has given the borough is too high and vowed to protect the suburbs from over-development. The Ealing branch of the party similarly said that Labour was proposing too many new builds.
The Conservatives in Enfield want to ban all building on the green belt, while Wandsworth Conservatives said they would create a private rented sector “champion” to settle disputes between tenants and landlords.
Newcastle Labour will consider setting up a council lettings agency. Birmingham Labour has pledged to build 2,000 new homes using housing trusts and private property developers. Meanwhile, Bexley Labour Party will invest council staff pension funds into affordable housing.
The Conservative Party is expected to face a tough fight in some London boroughs where the polls indicate a tight race.
Additional reporting by Luke Barratt
