Council tenants will have to pay more to buy their properties under government plans being supported by Kingston Council's administration.

People will now get a much smaller discount when exercising their right to buy in a government bid to stop private companies abusing the system.

In the past, companies have sent fliers to people's homes offering up to £20,000 as incentives for tenants to buy.

The owners then have to leave the property, allow the company to rent it out and three years later are obliged to sell.

At Tuesday's council meeting, the administration said it will not opt out of the Government's scheme to reduce the maximum discount for tenants from £38,000 to £16,000.

They hope this will make it harder for companies to get properties at greatly reduced prices and help maintain the council's stock.

In the last three years, 200 of the 4,000 council units were bought up while 600 families lived in unsuitable accommodation because there were too few properties available.

Conservative Councillor Jane Smith questioned the administration's stance, saying services like education will have to be cut because of loss in revenue from selling stock.

But only 25 per cent of the money brought in from sales can be used by the council and the Lib Dems believe some of this will be recouped through savings on those living in bed and breakfast.

Leader of the Labour group Councillor Ed Naylor has supported his party's scheme.

He said: "There is a need for people to be able to buy their council property but if the tenant wants to buy they should pay more of a market price."

January 31, 2003 10:00