starting to think it wasn't worth it

System

1984ReturnsForReal wrote: »

Well, that is why.

It is all in the contract. Rent paid at a certain amount & cannot be increased by a certain amount.

I am quite sure their are many councils that would love to put up rent to private levels but what would they do with the money? Probably hire a few more traffic wardens.

Which bright spark thought a lifetime contract would be a good idea.

Probably the same guy who's a bouncy castle attendant now.

sjaypink

quantic wrote: »

It always cracks me up when people say something like "Yes but they still have to pay rent in a council house", and where exactly does that money come from? If a household does not have any income, they are getting everything for free.

And if they work, they pay rent. So as far as the relevance to the OP goes, if his ex-tenants are now getting a 'free' council house then they too were getting a 'free' house by way of renting his BTL with housing benefit.
The OP, like many BTLs, is either obtaining his income from the taxpayer by letting out to non-workers for maximum LHA, or he is speaking out his !!!! and the tenants are paying rent at their new home the same as they did with him (albeit I presume a lot cheaper)

1984ReturnsForReal wrote: »

I am quite sure their are many councils that would love to put up rent to private levels but what would they do with the money? Probably hire a few more traffic wardens.

A few years back LAs and other providers of social housing were told to get their rates in line with one another, and to a reasonable % of the private equivilant. For most, this meant a rise in rents, although some of the smaller, newer formed housing associations were actually told to reduce as they were the same prices as private. All LAs - the proper 'counil house' (and there aren't that many properties left anyhow) rents - were increased.
However, as you state 1984, there is a cap on how much LAs/HAs can raise their rents each year (maybe at face value because of the ethics and contract) - off the top of my head I believe it is 7%.
But I suspect the bigger issue here over whether socail housing rents are too low/high is the balance between the resints that pay full rent, and those that are in receipt of part or full housing benefit, as well as the balance between the ratio of housing association properties and LA owned properties (in many areas now this is 0)

I would think that apart from the areas that have a high proprtion of LA homes in comparison to HA homes, and of those homes, a high proportion of full rent paying tenants (so, an imaginary town/area then ) the rise in rents will just raise the cost of HB payments well in excess of any profit from the rent payers.

There is perhaps a disussion to be had as to whether LAs selling off their stock is/was a good idea (if we get really bored:cool:)...and whether that money went on traffic wardens

Graham_Devon

Oi, Sjay....do council tenants have lifetime contracts surrounding the rental payments? I.e. the council could never put it up over a certain amount regardless of the situation? You know about all this kinda stuff!

sjaypink

Graham_Devon wrote: »

Oi, Sjay....do council tenants have lifetime contracts surrounding the rental payments? I.e. the council could never put it up over a certain amount regardless of the situation? You know about all this kinda stuff!

I doubt any contract specifies £ rent caps, but, whoever governs (the government?! ) the rates will obviously not allow rents to go up massively in one go, for the reasons detailed above (mostly HB payments)

SingleSue

When we first moved in here, we were taken on as HA tenants as they had taken over the stock and because of that, we paid a higher rent than those who had been old council tenants.

They did eventually catch up with what we were paying but it took a fair few years...initially, our rent had been virtually private rent rates at the time.

We also paid our own rent from our own earned income, not benefits...being in social housng does not mean you are on benefits. My sister is also in a housing association property in a different area, her husband works full time and she works part time, they receive no rent or council tax assistance and never have (maybe if myself and Sjay say it enough, the few who keep banging on about it will actually get it into their heads that not all social housing tenants are benefit claimants!)

SingleSue

Graham_Devon wrote: »

Oi, Sjay....do council tenants have lifetime contracts surrounding the rental payments? I.e. the council could never put it up over a certain amount regardless of the situation? You know about all this kinda stuff!

No rent cap here Graham...the only thing they did was a percentage cap whilst the old council tenants were catching up with the new HA tenants. Now no real cap applies to percentages...it went up 10% last year on this property.

N.B I know I am not Sjay but thought I would give you my personal experience for my area.

illgetthere

Firstly, my ex tenants were working when they rented from me. Now they aren't hence why they served notice.

And again i am not hitting at people, just at what is available.....

nice to see a good debate though.

jay213

I dont think it is fair when you have people in council houses that can keep them for life paying a nice cheap rent, especially if they start earning over 30-40k per year. Its like they're looked after for life whilst earning more than some people having to pay private rents.

Graham_Devon

SingleSue wrote: »

No rent cap here Graham...the only thing they did was a percentage cap whilst the old council tenants were catching up with the new HA tenants. Now no real cap applies to percentages...it went up 10% last year on this property.

N.B I know I am not Sjay but thought I would give you my personal experience for my area.

Thanks. Just couldn't believe anyone would be stupid enough to impose lifetime rent caps! Any single change, economic or policy wise could be held back if this were the case, regardless of need to carry out such changes.

While there are plenty of people living in council homes who would struggle to afford "market based" rents, there are many others living in them who are doing very well, and still get the benefit of cheaper rents. Theres even MPs with second and holiday homes, living in council homes, on smaller rents.

Spartacus_Mills

Thrugelmir wrote: »

That's a startling fact.

Maybe you stop paying for that private healthcare.

People who pay for private healthcare are great.

They pay for the NHS and they do not use it.

Lovely.