The Housing Bill will extend Right to Buy to 1.3 million housing association tenants, giving them the chance to benefit from the same discounts offered to council tenants.
Discounts available under the Right to Buy were increased in 2012, and currently stand at a maximum £77,900 outside London and £103,900 in the capital.
But this only applies to those who live in council housing, or whose homes have transferred from a council to a housing association. It means social tenants living in the same neighbourhood can have vastly different levels of discount – or no Right to Buy at all.
Mr Clark said the Housing Bill will “create a level playing field” to ensure any social tenant wanting to buy their home would have the opportunity to do so at the same levels of discount – regardless of whether they live in a council or housing association property.
To fund this policy, the Housing Bill will also require councils to sell their most expensive housing when it falls vacant – with the receipts used to provide new affordable homes in the same area, and the surplus used to fund the Right to Buy for housing association tenants. Remaining funds will be invested in a new Brownfield Regeneration Fund to increase the supply of new housing.
First-time buyers will be further helped by plans to deliver 200,000 Starter Homes, which will be available at a 20% discount to first-time buyers under 40.
A ‘Right to Build’ in the Bill will also aim to increase housing supply and diversify the housing sector by giving people the right to be allocated land with planning permission for them to self-build or commission a local builder to build a home.
Communities Secretary Greg Clark said:
"Our Housing Bill will offer over a million people a helping hand onto the housing ladder. That is what a government for working people is about – making sure people have the security they need to build a brighter future for them and their families."
Housing Minister Brandon Lewis said:
"Schemes like Help to Buy are helping thousands of people who want to buy their own home – but we need to go further.
"Anyone who works hard and wants to get on the property ladder should have the opportunity to do so, which is why tomorrow’s Queen’s Speech will include measures so a million more people have the chance to do exactly that.
"And with housing starts at their highest since 2007, we’ll take steps that will get workers on sites and keep the country building.
"The vast majority of people want to own their own home. While substantial progress has already been made in helping people achieve this, with more than 200,000 households helped to buy a home since 2010 through government-backed schemes, further action must be taken."
