The Labour Party’s planned ‘right to buy’ policy could cost landlords almost £50bn, an average of £18,400 each, according to calculations by Times Money.
Many landlords fear the idea of a Labour government after the party unveiled plans to give private tenants the right to buy their homes at a discount.
John McDonnell, the shadow chancellor, wants to “tackle the burgeoning buy-to-let market”, and believes that his plan would be a fair way of redressing problems such as landlords refusing to invest in their properties, while making a “fast buck” at the cost of their tenants and the community.
In an interview with the Financial Times last week, McDonnell stated: “You’d want to establish what is a reasonable price, you can establish that and then that becomes the right to buy.
“You (the government) set the criteria. I don’t think it’s complicated.”
However, McDonnell yesterday appeared to backtrack somewhat on committing to the idea that buy-to-let landlords will lose out when it comes to selling their properties to tenants.
The shadow chancellor told the Andrew Marr Show that Labour is indeed “exploring the idea of a right to buy for private tenants”, but went on to say that “the discussion would be at what’s a fair price” and that he “wouldn't expect anybody to lose out”.
“People who have invested that way [in buy-to-let property] would be protected, of course,” he added.