The UK government is set to provide households in England who rent properties from housing associations the opportunity to purchase them at a discounted price, the Telegraph has reported.

Prime minister Boris Johnson has told officials to develop the proposals to help ‘generation rent’ within the last two weeks, the Telegraph revealed.

The proposal is intended to give the 2.5m households in England who rent properties from housing associations the power to purchase their homes at a discounted price.

The proposals are inspired by Margaret Thatcher’s scheme, which was launched in 1980 to allow families to buy homes from councils.

A connected idea being pursued by officials, according to the Telegraph, is for the tens of billions of pounds paid by the government in housing benefit to be used to help recipients secure mortgages.

“The Prime Minister has got very excited about this. It could be hugely significant,” reports a government source familiar with the discussions to the Telegraph.

While current right to buy rules provides an opportunity for most council tenants to buy their homes at a discount, housing association tenants have limited discounts and are only allowed to buy a property acquired by an association since 1997.

Research from Moveable revealed that the younger generation is finding it increasingly difficult to step onto the property ladder. The research found that 36% of Brits aged 25 to 34 are waiting to get in a partnership/marriage before purchasing their first home because they simply can’t afford it on their own. This figure rises to 40% for those aged 18 to 24.

The plan to widen the scheme to all housing association tenants was included in the Conservative’s 2015 election manifesto but failed to materialise.

However, the Telegraph reported that there’s criticism over whether prices could still be too high and that it would not solve the housing shortage.

Ahead of the local elections this Thursday, the Telegraph reported that Downing Street believes the new version of “right to buy” would help scores of poorer households in traditional Labour “red wall” seats in the Midlands and North East which the prime minister won in the 2019 election.

If successful, the plans could also drive up the proportion of property ownership in the country, the Telegraph noted.

Commenting on the proposals, iPlace Global chief executive officer Simon Bath says: “With the cost-of-living crisis severely impacting the ability for Brits to get onto the property ladder, the Prime Minister’s announcement could potentially act as a stepping stone for many – particularly for the younger generation.”

“When this initiative was introduced in the 80s, it gave millions of people the chance to secure a home. While it’s a step in the right direction to assist the new generation with property ownership, we must ensure that more social housing is also being built, so that there are still options for those who may not be able to buy a home and who need it most.”

“The government must take their time to introduce new measures when developing this scheme to ensure that the property market can cope with these changes; and more importantly, to make sure that every person in the country has the equal opportunity to own a home.”