More than two million renters are eligible for the government’s Right to Buy scheme in England and Wales, research by Pepper Money shows.
The specialist lender says that 11% of households currently rent their home from a local authority or housing association, and of these, 54% say they would consider buying their property using the Right to Buy programme, according to a YouGov poll it commissioned.
It adds that the 2021 Census discloses that there are just under 34.8 million adults between 20 and 60 in England and Wales, which means the number of potential customers for Right to Buy is more than two million people.
The poll finds that demand to buy a home using Right to Buy is “significantly higher amongst households with children”, while those between 18 and 34 would consider using the Right to Buy scheme more than older members of the population.
The first Right to Buy schemes date back to former Prime Minister Margaret Thatcher’s Conservative government in 1980, and are controversial because local councils are not allowed to use the funds they receive to build more homes, adding to the UK’s housing squeeze.
Under current Right to Buy rules, local council or housing association tenants have the opportunity to buy their home at below market rates if they have lived in public sector housing for more than three years.
Pepper Money director of business development Ryan Brailsford says: “Home ownership remains an aspiration for many people living in rented accommodation, and Right to Buy provides an affordable opportunity to step onto the ladder for those who currently rent their home from a local authority or housing association.
“Our research shows the huge opportunity there is to help people in this space and we look forward to launching into Right to Buy very soon to provide options for those customers whose circumstances mean they are not properly served by the high street because of the way in which they earn their income or their credit history.”
The YouGov online survey contacted a nationally representative sample of 6,377 adults in April.
