Boris Johnson has announced big changes - or, at least, big headlines - to England’s housing system.
Thatcher’s ‘right to buy’ at discounted rates will be extended to 2.5million housing association tenants in a shake-up first proposed seven years ago.
And the most eye-catching - and controversial - proposal is what the PM nicknamed “benefits to bricks”. For the first time 1.5million working housing benefit claimants will be allowed to pay their benefits into a mortgage.
ISAs used to save for a house deposit will be made exempt from the £6,000 savings limit at which your Universal Credit starts being cut.
And the PM also announced a mortgage review, which will report back by the autumn, on lower deposits.
The point is to make better use of the £30bn housing benefit bill, much of which goes straight to private landlords - helping pay off their mortgages. Mortgage payments are also often cheaper than rent.
But a string of industry experts reacted scathingly, with Lewis Shaw of Shaw Financial Services saying : “This is the ultimate political meringue: sweet, lightweight and with very little substance.
“We don't need more right to buy schemes, we need to get more homes built and to bring down the cost of buying and owning a home. Talk about fiddling while Rome burns.”
Jonathan Rolande, from the National Association of Property Buyers, added: “This policy will do nothing to help anybody affected by the housing crisis.”
When will all this happen?
A review of the mortgage system, like low deposits, will begin within the coming weeks and report back by Autumn.
The government will also “work closely” on the design of the right-to-buy scheme with housing associations.
But there are few if any commitments on when any aspects of this plan will actually happen.
Meanwhile, interest rates are creeping up and making mortgages more expensive all the time.
How will it be different to 2015?
The right to buy for housing association tenants was proposed in 2015 by David Cameron but hit the buffers.
A pilot scheme took place of 1,892 sales and an average discount of 46% on properties worth £137,271.
Under the pilot, housing associations committed to “at least” one new home for each home sold.
But these replacements were not “like for like” in the vast majority of circumstances - more below.
And Kate Henderson, Chief Executive of the National Housing Federation, said: “Pilots have shown that there is not enough money from sales to build new social homes to replace those sold, meaning a net loss of social housing.”
Now it’s being revived, what will be different?
Will the homes be replaced fast and like for like?
Bors Johnson vowed a “one for one replacement” of each home sold under right to buy.
But once again there doesn’t seem to be any pledge of a like-for-like replacement.
In the last pilots, most replacements weren’t due to be the same rent level, number of bedrooms or location.
Of the replacements planned (and most weren’t built at the time of the survey), 42% were planned to be at social rent but 58% were planned to be at “affordable rent” - more expensive than the home it replaced.
Jonathan Rolande, from the National Association of Property Buyers, said: “Housing Associations are usually private entities who will need to be compensated for the enforced discount, so it appears that there will be a net loss for the taxpayer, rather than the ‘gain’ of the council house sales.
“This is an issue that needs to be addressed.”
Ian Fletcher, Director of Policy at the British Property Federation, said: “The homes bought must be replaced on a like-for-like basis. Without this, the availability of affordable homes will continue to be stretched at a time when we urgently need more stock, not less.”
David Renard, housing spokesperson for the Local Government Association, said: “Any houses sold must be replaced quickly, in the same local authority area and on a like for like basis.”
How will you ensure 95% mortgages are available?
Financial uncertainty means banks have been scaling back lending and it’s harder to get 5% or 10% deposits.
Key to Boris Johnson ’s plan is encouraging more lending of very large mortgages with small deposits.
But these are riskier both for banks and borrowers and can plunge you into negative equity if house prices fall.
The government is in talks with banks but ultimately there’s nothing to force them to lend on lower deposits.
Are you actually going to build enough homes?
Critics say offering bigger mortgages does nothing to solve the strangled-off supply of housing in the country.
Meanwhile, Boris Johnson today failed to repeat the Tory manifesto pledge to build 300,000 new homes a year.
Instead, he said: "I can't give you a cast iron guarantee that we're going to get to a number in a particular year."
How will people on benefits save a deposit?
Under changes to welfare rules, 1.5million working people on housing benefits can use them to pay off a mortgage.
They will also be allowed to save for a mortgage more easily. Currently your Universal Credit tapers away if you have £6,000 in savings and ends if you have £16,000. ISAs to save for deposits will be exempted from this cap.
But Lindsay Judge, Research Director at the Resolution Foundation, said: “The number of people affected is likely to be small given that the deposit is the main barrier to home ownership.
“More than four-in-five families on means-tested benefits have no savings at all.
“In reality, those most likely to benefit will be receiving support from elsewhere – be that via Right to Buy or financial support from family members.”
How will people on benefits be approved for a mortgage?
Just like banks don’t have to approve 95% mortgages, they don’t have to approve certain people to lend to.
So there’s nothing to stop them running an affordability check on benefits claimants and rejecting their application.
Oli Pearce, director at Guild Mortgage Services, said: "The whole policy package seems like political waffle to me.
“Last time I checked, lenders dictate what income they will allow for a mortgage application.”
How many people will it help?
1.5million people are potentially eligible to pay benefits into a mortgage.
But for the reasons above, experts are sceptical about how many will actually get round to it.
Many people in the benefits system are relying on food banks or just scraping by, let alone saving a deposit.
And ministers have not made any commitment to how many people will be able to buy a home because of this.
Work and Pensions Secretary Therese Coffey said it would be “thousands” but didn’t give a timeline for that.
