Londoners now have reason to rejoice; Right-to-Buy will now allow £100,000 as discount for tenants who want to buy the council and housing associations home that they have been living in. London property is pricier than other regions; so the rise in discount, from the earlier £75,000, will give fresh life to home-ownership in the city.
Since the discount was raised to £75,000 last year, 6 sales have been completed and another 37 await completion. It is after a study found that a £75,000 discount was not enough for most Londoners, that it was decided to increase it by another £25,000.
Right-to-Buy was introduced in 1980 by Margaret Thatcher. This social policy allows 50% discount to long-standing tenants if they buy their council home. The new discount of £100,000 will bring the dream of owning a home within the reach of a large section of Londoners living in council homes.
London property prices are increasing rapidly. £403,000 is the average house price in London now – a 15% rise from the £350,000 peak in January 2008, after which there was a short property crash triggered by the banking crisis.
The Chancellor ordered the weekly Cabinet to find spending cuts up to £2.3 billion over the course of next two years. These savings are to be channeled back into pro-growth and infrastructure projects.
Inflation was up to 2.8% last month. With prices rising almost twice as fast as salaries, the common man is in a struggle. Economists warn that inflation could rise to even 3.5% this summer.
For his fourth Budget meeting, the Chancellor will focus on a package that gives importance to infrastructure projects, improving employment opportunities and helping struggling families.
The Budget is set to make the public sector spend more. 2.5 million families where both parents work and each earns less than £150,000 a year will receive £1,200 per child. Train carriages will also receive cash for wi-fi installation.