I. Introduction
Homeownership in the United Kingdom has been one of the most enduring subjects in social discourses nowadays. The acquisition of one’s own home is tantamount to acquiring a major asset for any individual. To this manner, the state has provided the citizens the capability of acquiring their own dwellings through the ratification of entitlements in the Housing Act of 1985, and later amended in the Housing Act of 2004. These entitlements are collectively known as “right to buy” entitlements on the part of the tenants the moment the property comes on sale. The following discussions will provide a presentation of these rights of the tenants on their right to buy entitlements. Moreover, recommendations will similarly be provided after an analysis of the entitlements and rights of the tenant are discussed.
II. Home Ownership in UK
Studies relating to the state of homeownership in UK have been taken into consideration by the Department of Communities and Local Government (DCLG). Their recent work surveyed the whole of UK categorizing the UK dwellers as owner-occupying households, social renters, and private renters. (, 2006) In the said study they found out that over 14.6 million people owns their own dwelling and over 6 million both social renters and private renters. This shows that a considerable number of the UK population owns the properties they live in while there is still a considerable part of the population are tenants.
The study further noted that those who own their own house still differ in terms of their economic statuses. The DCLG indicated that majority (92%) of those who owns their houses pays under a mortgage while 35% were considered outright owners. This data manifests the existence of buying schemes in UK, specifically it shows that majority of the homeowners in the country has acquired their dwellings with the help of such schemes. The other portion deemed to have owned their dwellings outright may have bought the house on their own accord without the help of any financial institution, or they could have acquired it through transfer of title through inheritance.
III. New Rights under Housing Act of 2004
The Housing Act of 2004 has been ratified by the parliament I November of 2004 and implemented in early parts of 2005. Seen from its predecessor, the Housing Act of 1985, the contents of the current legislation intends to install enhancements on the rights to buy of the population. Same as the past legislation, the Act allows any tenant who is capable of purchasing the real property they are currently dwelling in. The exceptions still remains on the properties that have some connection to the employment of the buyer, like housing projects for government employees. Other exceptions include establishments that are especially provided to the elderly and the handicapped.
The changes that were infused in the said legislation tackled certain issues on using the tenant’s right to buy as a tool for business. Peppered by numerous early resales of the properties under the right to buy scheme, the government have taken a hand by instituting several changes in the Act. One of the amendments in the Act is the qualifying period to which a tenant has to be eligible for the right to buy scheme. The change from two years to five years was placed. Another extension provided by the Act is repayment periods of the discounts given to the owners if they intend to resell their property. The period indicated was three to five years. Moreover the Act also indicated that the amount repayable to the state would be in proportion to the resale value of the house. Other changes include the exemption of houses that are condemned for demolition. This means that those who intend to buy a dilapidated property for a low amount in order to build a new structure in place of it would not have a change anymore under the new regime.
IV. Conclusion
As seen in the changes provided in the Act, the state made the right buy scheme immune to some level of abuse from malicious individuals who want to gain profitably from the government scheme. These individuals defeat the purpose of the Housing Act, and the Right to buy scheme in particular. The essence of the Act and the scheme itself is to provide housing for the entire population of UK. The state in its own is able to provide such an opportunity for more than six million renters in the land.
To this end, the amendment of the Housing Act indicates the desire for actual reform to take place. Additional actions may also be recommended to improve the implementation of the law. One may be the provisions of additional discounts to encourage homeownership to the public. Not only that, it will also be a precursor to the circumvention of homelessness in the country. Another recommendation would be the provision of closer monitoring in the post-acquisition phase of the property. This manifests the fact that helping the tenant acquire a home is merely the beginning. Paying for the property is a part of that process. As stated in the study of the DCLG, majority of those who have acquired their homes goes through a mortgage. This study recommends that the state provide some sort of program or sanction to the homeowners who may have been encountering difficulties in meeting their payments. The state may purchase the property in a lower price from the home owner and find another tenant who would be able to carry out his/her financial obligations more effectively. In this manner, everyone has a shot in owning a home.
Moreover, the Act as well as the right to buy represents other things than giving the liberty to purchase assets for dwelling. It also represents the responsibility of the homeowner after the purchase of the house. Along with the risks involved, it is the commission of the homeowner to care for the property that the state has helped him/her acquire.
V. References
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