The British government launches the Right to Buy program to help low-income people buy houses
British Prime Minister Boris Johnson (Boris Johnson) announced on June 11 plans to extend the Right to Buy scheme to low-income people renting from housing associations.
Speaking in Blackpool, the Prime Minister said that in the coming weeks he would be committed to on "reforms to help people cut costs in every area of household spending".#{ 16}
He believes that spending on housing The £ 30bn in benefits, much of which is currently paid as rent to private landlords, should be used to help people get mortgages to buy and pay their own mortgages.
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What is the “Right to Buy” program?
"Right to Buy" is a government program, allowing UK tenants to purchase their rental properties in the UK at a discount.So far this has been limited to tenants of local authority housing.
The scheme has been abolished in Scotland and Wales but remains in force in Northern Ireland. Across the UK, the maximum discount available to council tenants is £87,200, however, across London boroughs, the overall discount rate is higher at £116,200.
Tenants must live in their low-rent housing for three to five years before they are eligible for the 35% discount on buying a house.Each year after that, receive an additional 1% discount, bringing the overall discount to 70%.
Forty years ago, then British Prime Minister Margaret Thatcher this system through the Housing Act 1980.
Today's changes to Right to Buy will be implemented see the scheme open to low-income tenants who receive housing benefit and rent their homes from housing associations. People with deposits of more than £16,000 are not eligible for the home buying benefit.
Housing associations are not-for-profit organizations that rent homes to 2.5 million people who receive housing support. Before today's extension of the right to buy, there was already a scheme in place t o let people buy their homes from housing associations, but the discount was limited to £16,000 of market value.
A report on the Right to Buy pilot project published Last year found that the 44 housing associations involved in the UK had no plans to use the same A number of new properties replaced the 1,892 homes sold. The pilot project began in August 2018 in the Midlands.
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"Early indications are that the average size of the replacement homes will be smaller than the homes they replace," the government report found.
#{ 117}Polly Knight, chief executive of Shelter, said: "The Prime Minister's housing plan is confusing, unworkable and a dangerous gimmick. It has been drawn up hastily. Plans to extend the 'right to buy' will put our rapidly shrinking social housing supply at greater risk "
"Replacing decades of work. Every promise of social housing sold through Right to Buy has failed. If these plans go ahead we will continue to be stuck in the same destructive cycle of selling and demolishing thousands more social homes than are built every year." {126}
UK student loan interest rates will increase from 12 % dropped to 7.3%
Due to global economic pressure, RPI rates have risen, meaning graduates applying for student loans will face interest rates of up to 12% in September.The government has decided to intervene and cap interest rates at 7.3% to protect graduates.
#{ 56} The Government will take every opportunity to protect the public from rising costs of living and global economic pressures.Interest rates are usually set in August, but the government has taken the unprecedented step of making decisions early to insure Plan 2 (undergraduate) and Plan 3 (graduate) student loan borrowers based on forecast rates.
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This is the biggest ever fall in student loan interest rates, meaning a borrower with a student loan balance of £45,000 will see less money every month Approximately £180 of accumulated interest.
Monthly student loan payments are calculated based on income rather than interest rate or loan amount.Unlike commercial loans, any borrower whose income falls below the relevant repayment threshold will have their repayments stopped.
