Prime Minister Boris Johnson is reportedly set to announce plans to allow low-income workers to use housing benefit to help buy their own homes. Mr Johnson is expected to argue that £30 billion in housing benefit that currently funds rent payments could help people take out mortgages.
The PM is also set to announce an extension of the right to buy for housing association tenants. Mr Johnson is expected to make the announcements in a major speech in Lancashire later today.
The news was first reported by the Times, which added a plan to give millions of tenants the ability to pay for housing association properties at discounts of up to 70% is likely to be limited to pilot schemes initially, without additional Government funding.
The housing reforms come as Mr Johnson seeks to repair his fortunes after a bruising Tory revolt against his leadership. He survived a no confidence vote despite 148 of his own MPs – or 41% of Conservatives – saying they want him out of No 10.
Read more: Liverpool officials to meet chair of UEFA's review into problems at the Champions League final
On Wednesday, Mr Johnson said the Government will be “expanding home ownership for millions of people”.
In his speech today, Mr Johnson is set to say: “We have the tools we need to get on top of rising prices. The global headwinds are strong, but our engines are stronger.
“And, while it’s not going to be quick or easy, you can be confident that things will get better, that we will emerge from this a strong country with a healthy economy.”
Shadow minister Jess Phillips questioned how the housing benefits policy will work because individuals with more than £16,000 in savings and investments do not qualify for Universal Credit. The Labour MP said: “It’s almost as if Boris Johnson doesn’t do much benefits casework."
Plans for renters to be able to buy their social homes at a discount appeared in David Cameron’s 2015 Conservative manifesto, but the pledge failed to materialise. Mr Johnson committed to consider new pilots for the scheme ahead of the 2019 general election.
