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  • FIRST POST
    • Zizou
    • By Zizou 17th Jul 17, 4:00 PM
    • 17Posts
    • 2Thanks
    Zizou
    Right to Buy - Unethical/Sinister change?
    • #1
    • 17th Jul 17, 4:00 PM
    Right to Buy - Unethical/Sinister change? 17th Jul 17 at 4:00 PM
    Hi

    I was using right to buy calculator righttobuy.gov.uk/right-to-buy-calculator and have noticed that they have switched off auto-calculation for 'Insert an estimated value of your property'.

    When I spoke to them they said now you have to enter the value of the property you are trying to buy, which is based on the market value (inflated - estate agent prices), and then it will calculate your discount for e.g.

    3 bed flat in East London Zone 2 in London was sold by an estate agent for £800,000 so the council will now take this figure and then add whatever discount is available in that area (104,000). This flat will now cost you £696,000 to buy! (And the funny this is that bank can only lend you up to £600,000, and the rest you have to put that as a deposit!)

    The government have changed the rules snidely behind the backdoor, making it more difficult to buy!!
Page 1
    • theartfullodger
    • By theartfullodger 17th Jul 17, 4:20 PM
    • 8,831 Posts
    • 11,668 Thanks
    theartfullodger
    • #2
    • 17th Jul 17, 4:20 PM
    • #2
    • 17th Jul 17, 4:20 PM
    Are you suggesting the discount you will be receiving from the government, paid for by all us tax-payers, is in your opinion insufficient? I'm merely asking a calm & polite question, not in any way making any form of criticism.
    • Pixie5740
    • By Pixie5740 17th Jul 17, 4:21 PM
    • 10,767 Posts
    • 14,877 Thanks
    Pixie5740
    • #3
    • 17th Jul 17, 4:21 PM
    • #3
    • 17th Jul 17, 4:21 PM
    D- must try harder.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • fairy lights
    • By fairy lights 17th Jul 17, 4:23 PM
    • 7,946 Posts
    • 26,487 Thanks
    fairy lights
    • #4
    • 17th Jul 17, 4:23 PM
    • #4
    • 17th Jul 17, 4:23 PM
    That's not even remotely sinister
    • Cakeguts
    • By Cakeguts 17th Jul 17, 4:27 PM
    • 2,667 Posts
    • 3,642 Thanks
    Cakeguts
    • #5
    • 17th Jul 17, 4:27 PM
    • #5
    • 17th Jul 17, 4:27 PM
    Its an estimate just like the auto calculation. So what is the difference?
    • Running Horse
    • By Running Horse 17th Jul 17, 4:34 PM
    • 10,657 Posts
    • 19,841 Thanks
    Running Horse
    • #6
    • 17th Jul 17, 4:34 PM
    • #6
    • 17th Jul 17, 4:34 PM
    Oh dear, what a pity, never mind.
    The people have spoken, Parliament has voted, we are leaving the EU.
    • NineDeuce
    • By NineDeuce 17th Jul 17, 4:35 PM
    • 70 Posts
    • 57 Thanks
    NineDeuce
    • #7
    • 17th Jul 17, 4:35 PM
    • #7
    • 17th Jul 17, 4:35 PM
    Shouldnt happen. The tenants should at least have to pay market rate.
    • ProDave
    • By ProDave 17th Jul 17, 4:45 PM
    • 201 Posts
    • 261 Thanks
    ProDave
    • #8
    • 17th Jul 17, 4:45 PM
    • #8
    • 17th Jul 17, 4:45 PM
    I wish somebody had given me £104K off the purchase price of my house. I would not be complaining it was "sinister".
    • TheGardener
    • By TheGardener 17th Jul 17, 4:48 PM
    • 2,090 Posts
    • 1,995 Thanks
    TheGardener
    • #9
    • 17th Jul 17, 4:48 PM
    • #9
    • 17th Jul 17, 4:48 PM
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    • stator
    • By stator 17th Jul 17, 4:58 PM
    • 5,720 Posts
    • 3,704 Thanks
    stator
    They probably removed the estimate because it was inaccurate.
    It won't affect the purchase price
    Changing the world, one sarcastic comment at a time.
    • martinsurrey
    • By martinsurrey 17th Jul 17, 5:23 PM
    • 2,983 Posts
    • 3,616 Thanks
    martinsurrey
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    Originally posted by TheGardener
    I guess we could get into a debate on what "funded" means.

    If the rent is any less than market rent, then the tax payer is subsidising the rent, and that subsidy is made up elsewhere through taxation and or reduced services.
    • Guest101
    • By Guest101 17th Jul 17, 5:33 PM
    • 14,627 Posts
    • 14,349 Thanks
    Guest101
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    Originally posted by TheGardener
    No, not it isn't.
    • TheGardener
    • By TheGardener 17th Jul 17, 5:35 PM
    • 2,090 Posts
    • 1,995 Thanks
    TheGardener
    I guess we could get into a debate on what "funded" means.

    If the rent is any less than market rent, then the tax payer is subsidising the rent, and that subsidy is made up elsewhere through taxation and or reduced services.
    Originally posted by martinsurrey
    Really - how? - Housing Revenue Accounts do not take subsidies from the 'tax payer' that would be illegal. However, individuals do have subsidies (HB) HRA (council and HA's) are simply social enterprises. The difference between the market rent and the social rent are about the profit margins and business model. The social housing rent is driven by the costs of provision - market rents are driven by profit requirements of the landlords. 'The Council' do not pay for council housing - the tenants do.
    Last edited by TheGardener; 17-07-2017 at 5:38 PM.
    • da_rule
    • By da_rule 17th Jul 17, 6:37 PM
    • 2,472 Posts
    • 2,201 Thanks
    da_rule
    Shouldnt happen. The tenants should at least have to pay market rate.
    Originally posted by NineDeuce
    What do you mean by "market rate"? Do you mean market value? In which case that is what happens. When you make your application a valuer will visit the property and value it based in its condition/location, whether it's freehold etc. It will also be valued based on it being sold with vacant possession by a willing seller to a willing buyer.

    This price is then used as the base from which the discount amount (percentage based on type of property and how long you've been a tenant) is calculated.

    The process hasn't changed. The calculator is a rough guide, so what you were told is essentially correct, put in what the property is roughly worth and you'll have a good indication of affordability.
    • Richey_
    • By Richey_ 17th Jul 17, 6:46 PM
    • 204 Posts
    • 233 Thanks
    Richey_
    You live in tax payer subsidised accommodation yet earn enough a bank would give you a mortgage for £600,000!!



    It must be tough to earn a six figure salary and have to save up £96,000 and then get a £104,000 bonus by way of a the discount you will receive.

    May I please suggest a help to buy isa (if you can with that discount) as that will then provide more tax payer funded free money for you.

    Please do keep us posted as to how you get on
    • FBaby
    • By FBaby 17th Jul 17, 6:57 PM
    • 15,713 Posts
    • 39,329 Thanks
    FBaby
    It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    Unless it is the children of someone who's been on HB all their lives who buys with the parent.
    • TheGardener
    • By TheGardener 17th Jul 17, 8:20 PM
    • 2,090 Posts
    • 1,995 Thanks
    TheGardener
    Unless it is the children of someone who's been on HB all their lives who buys with the parent.
    Originally posted by FBaby
    Over the last year or two almost all councils have changed their tenancy agreements to make 'succession' only available to partners, not their children.

    Anyhoo - I never said I agreed with 'right to buy' I just wish people understood how its funded and get off the indignant "its tax payers who pay for it" rant - cos really - it isn't and there are far more intelligent arguments. The real crime is in the private sector rents and lack of new build social housing. Anything else is just a distraction
    • CD*
    • By CD* 17th Jul 17, 9:54 PM
    • 9 Posts
    • 5 Thanks
    CD*
    Hi

    I was using right to buy calculator righttobuy.gov.uk/right-to-buy-calculator and have noticed that they have switched off auto-calculation for 'Insert an estimated value of your property'.

    ...

    The government have changed the rules snidely behind the backdoor, making it more difficult to buy!!
    Originally posted by Zizou
    In my experience Councils routinely undervalue their housing stock, for reasons unknown,
    so that RTBers effectively get a bigger discount.
    • Red-Squirrel
    • By Red-Squirrel 17th Jul 17, 9:58 PM
    • 1,509 Posts
    • 4,077 Thanks
    Red-Squirrel
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    Originally posted by TheGardener
    True if it is used as council housing.

    If it's sold under RTB, those huge discounts are definitely council, and therefore taxpayer, funded.
    • Cheeky_Monkey
    • By Cheeky_Monkey 17th Jul 17, 10:58 PM
    • 1,266 Posts
    • 2,399 Thanks
    Cheeky_Monkey
    Hi

    I was using right to buy calculator righttobuy.gov.uk/right-to-buy-calculator and have noticed that they have switched off auto-calculation for 'Insert an estimated value of your property'.

    When I spoke to them they said now you have to enter the value of the property you are trying to buy, which is based on the market value (inflated - estate agent prices), and then it will calculate your discount for e.g.

    3 bed flat in East London Zone 2 in London was sold by an estate agent for £800,000 so the council will now take this figure and then add whatever discount is available in that area (104,000). This flat will now cost you £696,000 to buy! (And the funny this is that bank can only lend you up to £600,000, and the rest you have to put that as a deposit!)

    The government have changed the rules snidely behind the backdoor, making it more difficult to buy!!
    Originally posted by Zizou
    That's excellent news - thanks for letting us know
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