Government to DOUBLE right to buy discount to help more people onto the ladder

michaels

HA tenants who started as council tenants retined RTB rights.

IF all the funds are used to build new council housing what is the problem. Locally a 1 bed flat would sell for about 140k. A 70k discount would net 70k which would be enough to build a new flat if it was on land already owned by the council which would house a couple. Who loses?

gailey_2

michaels wrote: »

HA tenants who started as council tenants retined RTB rights.

IF all the funds are used to build new council housing what is the problem. Locally a 1 bed flat would sell for about 140k. A 70k discount would net 70k which would be enough to build a new flat if it was on land already owned by the council which would house a couple. Who loses?

if thats the case that ha have rtb rights too means

85%council and ha homes within uk.

but we dont know how many tennants would have right to buy?

your example maybe regional. im sure in big cities like london the flat would be valued higher and their maybe not the opportunity to rebuild as no land to build on!

CLAPTON

michaels wrote: »

HA tenants who started as council tenants retined RTB rights.

IF all the funds are used to build new council housing what is the problem. Locally a 1 bed flat would sell for about 140k. A 70k discount would net 70k which would be enough to build a new flat if it was on land already owned by the council which would house a couple. Who loses?

if indeed council have sufficient 'spare' land lying idle then it's an absolute digrace

chewmylegoff

michaels wrote: »

Who loses?

everyone else, given that the govt has sold a public asset for 50% of its value.

paulmapp8306

Right to buy scheme is a joke for many. You have to be living in the house for a start - and many cant get one. If you can afford to buy why should it be a home that others NEED.

That said - Forces personnel are supposed to be entitled to "right to buy". The years they spend in forces accommodation (single or quarters) are counted as qualifying years. This was to help then get their own home at the end of service. Thing is because at the end of service they get a pension- they will never qualify for council housing - so which house are they supposed to buy?

If there going to offer discounts, they should do it another way. Instead of selling of the houses to those in them, at say £25k off the market valve (for those qualifying), they should keep the housing for those on the list for it and subsidise the person wanting to buy to the same sum. This isnt going to work of course, and why should it? why should people get subsidised homes when those that can afford them dont? but selling of the few homes that ARE social homes and cheap will only make the housing problems worse for those who cant even get into a social home.

nollag2006

Good to see the government thinking creatively to kick start the housing market again, and to help FTBs to get on the ladder.

We are still about 10% above the post crash low of 2009, but it's been completely flat over the past 18 months or so.

gailey_2

When I think about all the private development executive housing thats gone up.

maybe if coucils sold any land for private residential housing then that money should go into their social housing fund.

Think there are some rules that the developer has to build small percentage or affordable social housing on same or nearby are to where they building like a token 5-10home out of 100.

we dont really know what %of tennants have right to buy?

How many would want to and afford it.

if morgages hard to get i suspect if you study it in few years times a few hundred will buy if they have the right not 1000,s.

Plus the older style council houses lot larger and better standard than the new shoebox ha houses built today and probably valued at more.

Also a lot of streets within the older estates already mostly privatly owned.

Whats to stop someone buying it then privatly renting that property?

I know few people who gained right to buy from other relatives like grandparents!

leveller2911

Housing association tenants can have the "Right to aquire" at market value dependant on when the houses where built. If the houses were built between 1989-1997 they do not have the RTA but if they were built after 1997 they have the RTA unless there are restrictive covenants(which is rare).

Personally I'm in favour of giving grants to HA tenants to help them buy into the private sector thus leaving the house empty for a family in need .

Emy1501

Under plans to extend the right–to–buy scheme, families will be entitled to up to twice the existing discount offered, potentially allowing millions more people on to the property ladder.
The scheme forms part of the Government's strategy to build hundreds of thousands of new homes and is expected to be unveiled by David Cameron and Nick Clegg next week.

The maximum discount currently allowed in the right–to–buy scheme is £38,000 but under the changes this would rise to £76,000 in areas with the highest property prices. The average £26,000 discount for a council home would jump to about £52,000.

In a further move, first–time buyers will be able to apply for 95 per cent mortgages.

Under the proposals, the Government would underwrite part of the mortgage risk for those buying new homes to help young people to get a foot on the property ladder


It is hoped that the loan guarantee will encourage lenders to provide mortgages with deposits of 5 per cent, rather than the 20 per cent or more currently demanded.
Thousands of acres of public land owned by hospitals, schools and the Ministry of Defence are also expected to be released under the plans, which could potentially accommodate up to 100,000 new homes.
The package of reforms could allow up to 450,000 new homes being built within the next few years. The stimulus would provide a welcome boost to the Government's drive in meeting housing targets after only 100,000 homes were built last year, compared to a target of 240,000.

Seems like the plan is to build New builds and the mortgages to be underwritten will be new builds also. Should make housing more affordable in the long run for the young

gailey_2

paulmapp8306 wrote: »

Right to buy scheme is a joke for many. You have to be living in the house for a start - and many cant get one. If you can afford to buy why should it be a home that others NEED.

That said - Forces personnel are supposed to be entitled to "right to buy". The years they spend in forces accommodation (single or quarters) are counted as qualifying years. This was to help then get their own home at the end of service. Thing is because at the end of service they get a pension- they will never qualify for council housing - so which house are they supposed to buy?

If there going to offer discounts, they should do it another way. Instead of selling of the houses to those in them, at say £25k off the market valve (for those qualifying), they should keep the housing for those on the list for it and subsidise the person wanting to buy to the same sum. This isnt going to work of course, and why should it? why should people get subsidised homes when those that can afford them dont? but selling of the few homes that ARE social homes and cheap will only make the housing problems worse for those who cant even get into a social home.

Sounds fairer so you mean a list of council houses availiable to buy for people who meet the criteria lot the fortunate ones who have cheap housing over their heads already and like the lottory you have option of right to buy.whilst others in private rental they cant afford as cant get onto social.

But I have 2examples of freinds of ours

1st is hubbys freind he lived with us for few months as couldent see him living in caravan in winter! he had split from his other half.
He looked into the right to buy /rent scheme with ha.
Dont think it was a huge estate was half normal ha and a select few 20or so houses were for people wanting to own half the house then pay ha on other half.

He wanted to buy a 2bed. but he was single man no kids, fullytime job 26k in 2006. he got turned down luckily is dad was on council and pulled a few strings. we visited it was nice but tiny .

My freind from school works for nhs as lab assistant.
her hubby works in nhs warehouse.
they both worked fulltime

she looked into housing keyworkers scheme.

think its for housing for nhs,police, firepeople ect.

but there were not many and you had to live and work in same county but the city sort of spolit into 4counties. she saod it was impossible to get on so gave up on the idea.

Luckily for her mummy and daddy pitched in and she brought a run down ex council property in need of repair in not so nice area.