Right-to-buy scheme given coalition reboot

In order to ease the housing worries keeping many buyers from entering the market, David Cameron has pledged to 'reboot' the right-to-buy scheme by offering council tenants discounts of up to £75,000 on the homes.

The increase in discount, much larger-than-expected, is intended to encourage "strong families and stable communities", according to the Prime Minister.

Under the plans, those who have five years' residency in a council house could receive a 35% discount, with an extra 1% for each added year up to a maximum of £75,000. Tenants in flats will also get 50% off after five years, with 2% added yearly.

Previous estimates placed the likely discounts at close to £50,000, but any additional money gained by the government will allegedly go towards building more social housing.

In addition to right-to-buy schemes, the government has also announced details of its NewBuy Guarantee, which gives would-be buyers access to mortgages even if they only have a 5% deposit. Three high-street lenders and seven construction firms have already agreed to the scheme.

"Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home,” said Mr Cameron.

"It's no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital. So we're working with leading house builders and lenders to get the scheme under way."