A damning new report claims Margaret Thatcher’s right-to-buy scheme has cost taxpayers nearly £200bn while worsening England’s housing crisis. The policy, which allowed council tenants to buy homes at steep discounts, has been called one of the UK’s “largest giveaways.” According to the think tank Common Wealth, the right-to-buy scheme led to the sale of 1.9 million council homes since 1980. These properties are now worth £430bn, but discounts averaged 43%, costing taxpayers £194bn in lost value.
The report highlights how the policy drained social housing stocks. Today, one in six private renters lives in a former council home. Meanwhile, councils struggle with rising homelessness and temporary accommodation costs. Originally launched in 1980, the right-to-buy scheme aimed to create a “property-owning democracy.” While it helped some families buy homes, critics argue it devastated affordable housing supplies.
Homeownership has plummeted among young adults. In 1990, over half of 25-34-year-olds owned homes. Now, fewer than a quarter do, pushing many into expensive private rentals or living with parents. Deputy Prime Minister Angela Rayner is pushing to reform the right-to-buy scheme. Proposed changes include extending the minimum tenancy period from three to ten years before purchase.
Labour has pledged £39bn for new social housing over a decade. However, experts warn rebuilding lost stock could cost £50bn. Critics say the policy enriched private landlords while leaving councils financially crippled. Many ex-council homes are now rented out, often to tenants on housing benefits. Local authorities spend over £20bn yearly on temporary housing due to shortages.
Housing campaigner Kwajo Tweneboa said: “The right-to-buy scheme gutted council housing and transferred public wealth into private hands. We’re now in a housing emergency.” With home prices still high and social housing scarce, the debate over Thatcher’s policy continues. The question remains: can reforms undo decades of damage?
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