Right To Buy Revamp Could Fund Deposit Scheme

Wandsworth Council wants to help fund both private and council sales

Money raised from Right to Buy sales is set to be used by Wandsworth Council to help first time buyers into home ownership, by giving them a deposit of up to £50,000.

The Council says it welcomes the Prime Minister's plans to revitalise the scheme by boosting the level of discount, but wants to use the money raised to help non council tenants buy a home as well.

Wandsworth wants the ability to set the level of discount and the freedom to use receipts to create a 'deposit pool' to help others into home ownership. Under the scheme a deposit of up to £50,000 would be offered to first time buyers with money being repaid into the pool once the property is eventually sold. The Council also wants to see private developers contribute to the pool.

The Council is also calling for council tenants to be able to use their Right to Buy discount to buy privately, thus freeing up social housing.

Cllr Ravi Govindia, Leader of Wandsworth Council, said: "The Government's announcement is an important step towards helping a new generation of people into home ownership.

"Just as Right to Buy inspired an estimated two million people buy their home we need new ideas so that their children can grasp the same opportunities. First time buyers can no longer rely on the 'Bank of Mum and Dad'."

October 4, 2011