Help needed, buying council house and Government Decent homes initiative

realitybites

Hi, we are just about to take advantage of the governments right to buy with a possible discount of up to £75k The house we are in has been modernised by the council. We are looking at a mutual exchange to a house that will be nearer family, work etc. The house we want to move to has not been modernised according to the Governments Decent Homes initiative. It needs new radiators, boiler, windows, kitchen, electric sockets, bathroom and toilet.
Can anybody hazard a guess or have a good idea as to how this will affect the asking price? By the Governments own guidelines this property falls outside of the criteria set out by themselves to be of a "Decent" standard.

ILW

Is this a wind up?

cattie

You'll be getting a bargain regardless of any work that you may like to carry out on the property should you buy it.

Only the council surveyor can give you an indication of how the property might be priced.

realitybites

ILW wrote: »

Is this a wind up?

Why would this be a wind up. With a combined income of £35k and living on the outskirts of London, 3 kids just leaving now and both in our 40's. House is valued at (going by previous sales) £210k even in the current climate. £135k would be outstanding, assuming we can get a mortgage.

realitybites

My question seems to have gone down like a lead ballon. I understand people look at my situation as a win win one but if I can save some money and not have to buy new windows, kitchen, bathroom toilet etc I think I should do so.
It might be a bit off topic on this forum.
If anyone can point me in the direction of a forum that might be a bit more empathetic to us councilees I'd be eternally grateful.

cattie

As I understand it, the council surveyor will value the property as if it were on the open market & your discount is worked out from that. It won't come into it that it hasn't been a subject of improvement under it's decent homes initiative.

If it's very outdated, then that might be reflected in the asking price, but you have to remember that the market price set for council homes is normally much less than than a comparable private home anyway.

If you go for this exchange & you want to benefit from council improvements, then it's best not to consider buying the house until they have eventually got around to updating it under the decent homes initiative.

realitybites

Thank you for the constructive input. I had a feeling that might be the case. :T

theartfullodger

Could you kindly outline the moral justification for the rest of us taxpayers subsiding you please??

Regards & thanks in advance

Artful

cattie

Don't blame the OP for taking the opportunity to bag a bargain house. Blame the politicians who refuse to do away with the right to buy.

There are not many people would refuse the opportunity to get a 75% discount on a house if it were offered to them. I'm sure I wouldn't! (unless it was a sink estate of course)

realitybites

theartfullodger wrote: »

Could you kindly outline the moral justification for the rest of us taxpayers subsiding you please??

Regards & thanks in advance

Artful

I think you should be lobbying the government over their decision to offer the discount and raise the cap. Moral justification? Since when did morals go hand in hand with sound financial investment. If only we all had a say in where our taxes were spent.
Subsiding? thought that was building terminology.

freddie0

theartfullodger wrote: »

Could you kindly outline the moral justification for the rest of us taxpayers subsiding you please??

Regards & thanks in advance

Artful

Moral justification?Where do you get off making such a statement, you obviously know little or nothing of Local Authority Housing and Finances.
The idea behind a Right to Buy is to help people get onto the property ladder by being able to provide a lower cost option for purchase. It is also a legal requirement now that any new housebuilder has also to provide a percentage of new homes at lower cost options for purchasers - i.e. 70% purchase price schemes etc. The differences are this:
A private purchase at a lower price will usually still be above a purchase price of a Right to Buy property, all of which is profit to go into someones fat pocket (not the general public).
A rented Local Authority homes income is ringfenced so that all rent paid can only be spent on the housing stock. There is no 'profit' as this is not the idea behind social housing. If one of these properties is then purchased the cash 'should' then be returned to the ring fenced housing account, or repay the outstanding debt to Whitehall caused by the initial property build however many years ago.
Local Authorities are encouraged to build new social housing by grants from the Government, but few can be 'bothered'. You may think that this is your 'subsidising', however, any new housebuilding schemes from private developers will mean that cash is paid to the Local Authorities for each and every house/flat etc built. Plus the builders must purchase/provide a similar area of land somewhere in the same County for sport/recreational purposes.
So I think you will find that most of the subsidising comes from private development, not social housing.