Expensive council homes should be sold - Turn2us

Expensive council homes should be sold as they become vacant and the money reinvested in building cheaper accommodation. This is according to a new Policy Exchange report, Ending Expensive Social Tenancies, published 20 August 2012.

The social policy think tank says that this approach:

• Will generate growth and jobs: This reform should allow 80-170,000 new homes every year. This would create 160,000-340,000 jobs a year in the construction industry.
• Is extremely popular with all sections of society: 73% of people including social tenants think that people should not be given council houses worth more than the average property in a local authority. By 2:1 voters agree people should not be given council houses in expensive areas.
• Has no real effect on employment: More expensive areas do have slightly higher employment rates but these differences are very small. Since people commute to work – either by public transport or car – the only effect of moving tenants is reducing time spent travelling and travel costs. This is not a major driver of employment
• Raises tenants’ standard of living: The majority of social tenants are either totally or largely reliant on benefits. Someone living on benefits in an expensive part of London will pay a 10-15% premium compared to someone living in a cheaper area.
• Reduce the housing waiting list by between 250,000 to 600,000 households in five years. The overwhelming majority of people waiting for a council house will benefit from these reforms.

Read Ending Expensive Social Tenancies (link opens in a new window)

Read the BBC News article (link opens in a new window)