Row of houses

Labour’s proposed right to buy policy could cost each landlord an average of £18,400. 

Figures calculated by Times Money found the planned scheme – which would allow private tenants the right to buy their home at a discount – would cost landlords collectively almost £50bn.

Shadow chancellor John McDonnell said the policy was aimed at tackling “the burgeoning buy-to-let market” and would encourage landlords to invest in their properties rather than relying on  making a “fast buck” from letting out substandard homes. 

McDonnell told the Financial Times last week that the government would “set the criteria”.

“You’d want to establish what is a reasonable price, you can establish that and then that becomes the right to buy,” he said.

But on Sunday, McDonnell said he “wouldn’t expect anybody to lose out”. 

Speaking on the Andrew Marr Show he said Labour was “exploring the idea of a right to buy for private tenants”, but insisted “the discussion would be at what’s a fair price”.

“People who have invested that way [in buy-to-let property] would be protected, of course,” he added.

But his latest words did not appear to reassure landlords. A recent survey by Landlord Today found that 91% of landlords thought the private tenants right to buy policy would “destroy” the PRS. 

Prime minister Boris Johnson is pushing for an October election but the opposition parties are understood to be planning on voting against or abstaining from the Fixed-Term Parliament Act making a pre-Brexit election less likely.

The Labour Party have previously announced plans to shake up the buy-to-let sector if they win at the polls. Earlier this year, they announced the party would introduce a new “progressive property tax” which would be paid for by landlords, with owners of empty homes, second homes and those non-UK residents registered here for tax purposes paying the new tax at a “significantly” higher rate.

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