Government research that has been accidentally published shows the sale of council homes is riddled with abuse by companies exploiting right-to-buy.
The legal ruse involves tenants being encouraged to buy their homes with the offer of cash incentives from leasing companies of as much as £26,000. The residents agree to move out as soon as they have bought their homes, in return, so the companies can lease them out at rents of up to £1,000 a month.
The practice has hit London hard and the report by Heriot-Watt University, commissioned by the deputy prime minister’s office, warns the phenomenon could spread.
