consultation paper and impact assessment on increasing Right to Buy discounts for tenants in April 2012. It is proposing to increase the cap to £50,000, effectively trebling the discount in some parts of the country.
This will mean, for example, that someone in the West Midlands who had been a tenant for eight years on an household income of £20,000 could buy their £90,000 flat with a discount of £50,000 compared to £26,000 previously - effectively doubling their discount.
In London, a tenant for five years buying a flat worth £160,000 would also receive a discount of £50,000 - more than three times the previous cap of £16,000.
The government does not intend to change the qualifying period for eligibility and the proposed changes also apply to the Preserved Right to Buy.
The valuations used in calculating the self-financing settlement payments to end Housing Revenue Account subsidy include a forecast of lost surplus income arising from Right to Buy sales under the current Right to Buy policy.
As the government expects sales to be substantially higher than the self financing projections, the consultation proposes that a part of the Right to Buy receipt should be used to pay down the housing debt supportable from the lost income from these additional sales.
However, under all models mentioned in the consultation paper, the receipts for replacement will require supplementing by borrowing, landlord contributions in land or funds and under some of the options modelled, some additional funding.
The government says it will discuss the proposals with key partners including landlords, lenders and tenant organisations. The consultation closes on 2 February 2012.