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

gailey_2

Let me use another example

say in 2006 year our 1st child was born we got a council house?
dont know exact rent in 2006 council rates byt we were paying £620

looked last year into social housing.
we in the very last band which=little chance of getting one.
its a bidding system
its all ha as coucil sold all their stock to them

the rent atm is £96 a week for 3bed
monthly-£372!

we currently rent private at £700 a month for 3bed house here.

fast foward to 2011 I have saved myself £327 a month -great saved myself £4000+a year

over 6years I now have £24,000 saved up possibly more if im saving on council tax too

thats a nice deposit.

say the house valued at £130k think fair price- 50% 65 k.

I have 24k +deposit.

i have to get a morgage of £41,000 to buy the house outright.

im no expert at morgages as really depends what type you take outr and most not fixed at same rate over duration of loan

but my guestimate would be 20year loan would be morgage payments of 200-300 less than the social rent!

How the heck is that fair?

most people in private rented struggle to save as the rents so high.

ILW

It does seem the sort of corrupt idea that helped destroy Greece. Once you are "in" the state system you get all sorts of extra benefits and rewards not available to those who have not had the good fortune to be admitted.

Will be even more encouragement to have a few kids from unknown fathers as a good way onto the path to buying your own house on the cheap.

leveller2911

neverdespairgirl wrote: »

Depends on the council. It's 50% of development over 10 units in Camden.

Down here its suppose to be 28% but that rarely happends. They seem to be classing shared ownership and Shared Equity as Social Housing which it clearly isn't.

leveller2911

ILW wrote: »

Seems a bit unfair that those that have been given subsidised housing for years, should then be given a discount to buy. What about those that have had to pay their way on the private rental market or just bought? Do they count for nothing?

I don't agree with the Council RTB scheme but remember the RTB criteria changed years ago so don't believe that all have the RTB.

I wouldn't totally agree with you about "subsidised Housing being given a discount to buy". Our house was built 20 years ago , the build cost was about £38,000 and they were built on land donated by the Council. Over the years we have paid a fair bit more in rent that the build cost and interest on the loan. IMO private rents are vastly over priced rather than Social Housing rents being too low but I guess we could argue that till the cows come home.

Lastly don't forget £millions of Tax payers money has been given to home owners to renovate their properties and as long as they live in them for 3-5 years after the work has been carried out there is no money to pay back to the Councils when they sell the houses, usually for a good profit.

You rarely see offers reduced for a house sale if it has a new roof, Kitchen, bathroom,damp coarse or staircase all paid for by the taxpayers...;)

geneer

chewmylegoff wrote: »

you missed out some words. it's not like any of these things have actually been implemented, is it.

he certainly did.
The article in full...

http://www.thetimes.co.uk/tto/news/politics/article3231754.ece

squinty

ILW wrote: »

Seems a bit unfair that those that have been given subsidised housing for years, should then be given a discount to buy. What about those that have had to pay their way on the private rental market or just bought? Do they count for nothing?

Erm, council houisng is not subsidised - except in the sense that some tenants get HB (as do some people in the private sector).

There is currently a national housing subsidy system. How this works is that the government follow a formula that works out what the rent should be, and what the cost should be - If the notional rent is greater than the notinal cost the balance is paid to the government in negative subsidy, and if costs greater than rent then the govt pay subsidy. The vast majority of coucils pay into the scheme - the main beneficiaries are London Boroughs - however the scheme overall runs at a surplus. I.e. far from being subsidised, council tenants subsidise others !!

From next year the Local Authorities will have to buy themselves out of the system which will raise about £30bn for the government. Councils will need to take on addtional borrowing to support this, and a proportion of rent income will be used to repay this debt.

And for clarity - the govt have set a target to develop 100k properties from stimulating the RTB. They have said that new social homes will be built. However, they have not given details - it could be Housing Associations who build, and it could be in a different area of the country.

Currently 75% of the reciept of council house sales goes to central govt. My guess is that the govt will just recycle this, probably through a competitive process, and rely on Housing Associations to borrow to finance the balance.

michaels

I think we have gone round in circles on this one before.

Some argue that if the rent covers the costs including some notional amount for construction costs then there is no subsidy.

Others argue that if the rent is below market or does not cover the cost of capital based on the market value of the property then it is a subsidy.

I am in the later camp.

squinty wrote: »

Erm, council houisng is not subsidised - except in the sense that some tenants get HB (as do some people in the private sector).

ILW

squinty wrote: »

Erm, council houisng is not subsidised - except in the sense that some tenants get HB (as do some people in the private sector).

There is currently a national housing subsidy system. How this works is that the government follow a formula that works out what the rent should be, and what the cost should be - If the notional rent is greater than the notinal cost the balance is paid to the government in negative subsidy, and if costs greater than rent then the govt pay subsidy. The vast majority of coucils pay into the scheme - the main beneficiaries are London Boroughs - however the scheme overall runs at a surplus. I.e. far from being subsidised, council tenants subsidise others !!

From next year the Local Authorities will have to buy themselves out of the system which will raise about £30bn for the government. Councils will need to take on addtional borrowing to support this, and a proportion of rent income will be used to repay this debt.

And for clarity - the govt have set a target to develop 100k properties from stimulating the RTB. They have said that new social homes will be built. However, they have not given details - it could be Housing Associations who build, and it could be in a different area of the country.

Currently 75% of the reciept of council house sales goes to central govt. My guess is that the govt will just recycle this, probably through a competitive process, and rely on Housing Associations to borrow to finance the balance.

I would consider that anything being supplied at below market value is subsidised.

luvpump

:j I pick up the keys to my council flat tomorrow, this is great news !! :rotfl: :T :beer:

ILW

They won't give me one because I do not have enough need. Pity as looks like a good little earner.

Just goes to show that trying to support oneself and paying ones way is beginning to look a bit of a mugs game.