Shapps to look at giving tenants free equity stakes in social housing

Published by Ross Macmillan for 24dash.com in Housing

Housing minister Grant Shapps has agreed to look at plans to give working tenants a free equity share in their property - which could be cashed in when those tenants leave the social rented sector.

The call came from Conservative MP for Harlow Robert Halfon in a debate on social housing in Wesminster Hall on Tuesday.

He cited the “Breakthrough Britain” report, by the Centre for Social Justice, which called for social tenants who work, or who make a genuine effort to find work, to be rewarded with increasingly larger equity stakes in their home.

He said: "...[It] could help in many ways; for example, as a small nest-egg for retirement, or as a deposit for their first house. I passionately believe in that policy: it is social justice in action, and rewards people who do the right thing. That is important because an Englishman’s home is not just his castle; it is his pension and an emergency source of funding for care in old age.

"People who never own equity in a house are shut out from that security, and have to live hand-to-mouth right into retirement. When the economy improves, I hope that we will have the finance to implement that policy."

Mr Shapps said: "I am very keen on shared-equity schemes and like to do all that I can to assist with them. I agree with his comments about that issue and will be happy to take a further look at it."

Shapps, however, ruled out calls by Mr Halfon to restore the huge discounts in the right to buy scheme and also declined calls to allow councils to keep their full right to buy receipts, instead of returning 75% of them to the Treasury.

Shapps said: "At the moment, 75% of receipts from the right-to-buy initiative are returned to the Treasury. As hon. Members will know, sadly we have had to leave that measure in place because of the need to reduce the country’s enormous deficit. We have, however, said that it will be up for review at the end of the spending review period."