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Boris announces new housing scheme
Graham_Devon
Posts: 58,560 Forumite
Basically, people will be able to rent flats / houses at 80% market rent.
At any time, if they wish, they can decide to buy the property they are in. If they do decide to buy the property, any rent they have paid in the previous months / years will be taken into account and taken off the property price (not sure how big the percentage is in terms of how much you paid and how much is taken off).
The homes are aimed at people on £72,000 a year or less (remember this is London).
What do you lot think? I actually think this is quite a good idea, so long as there are no hidden catches. It gets people in homes, paying for them, and if they wish they can buy them.
A scheme I can't really fault....at the moment anyway!
Least it means the rent money isnt "dead money" if you do decide to buy. If you don't decide to buy, well fair enough, you have just rented the place. Best way I can think of of saving for a deposit while renting!
At any time, if they wish, they can decide to buy the property they are in. If they do decide to buy the property, any rent they have paid in the previous months / years will be taken into account and taken off the property price (not sure how big the percentage is in terms of how much you paid and how much is taken off).
The homes are aimed at people on £72,000 a year or less (remember this is London).
What do you lot think? I actually think this is quite a good idea, so long as there are no hidden catches. It gets people in homes, paying for them, and if they wish they can buy them.
A scheme I can't really fault....at the moment anyway!
Least it means the rent money isnt "dead money" if you do decide to buy. If you don't decide to buy, well fair enough, you have just rented the place. Best way I can think of of saving for a deposit while renting!
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Comments
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It sounds like a good idea on the face of it.0
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A scheme I can't really fault....at the moment anyway!
That's true............infact it sounds too good to be true actually.
I can't imagine this was an idea thought up by Boris himself though........sounds way too sensible !!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Which flats/houses?0
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lostinrates wrote: »Which flats/houses?
These are new builds. I believe built for the purpose of the scheme. But they could be buying up new builds, not sure.0 -
presumably it will be funded by all those people who pay their mortgages or rent property in the conventional way.0
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Oh well, on a personal level its no use to us...by the time its through/sorted the rent we'd pay while under the earning threshold would be minimal.
Essentially, its a mortgage by another name, right? Its not such a horrendous idea, but the problem might be longevity of the scheme. Like the shortage of social housing due to right to buy perhaps.
FWIW we could afford to buy in London on that salary IMO, withour deposit certainly. It would be great for young savers to be able to build deposit up in rent payments though. Whether that makes it a worthwhile plan for everyone else to support is another thing I guess.0 -
I cannot see how someone on over 70k per year cannot buy a home in the normal way. Loads o 3 bed homes in London under 200k.0
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Is the rent money ringfenced until you leave? Doees anyone have an official link to it?0
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Obviously in Bullingdon-Tory-land, 70k is a low income.Politics is not the art of the possible. It consists of choosing between the disastrous and the unpalatable. J. K. Galbraith0
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Sir_Humphrey wrote: »Obviously in Bullingdon-Tory-land, 70k is a low income.
The 72k is just the top cap.
Around 70k is the average salary in London though, according to statistics.gov.uk.
Mere 16k here is outr average
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