Right to Buy for Private Tenants.

Running_Horse

Think of all the savings on housing benefit as expensive rents are replaced by cheaper mortgages. It might even be self financing for the government to compensate landlords for that 10% discount. Other tenants watching would be inspired to improve their financial circumstances, reducing the benefits bill further.

ukcarper

Running_Horse wrote: »

Think of all the savings on housing benefit as expensive rents are replaced by cheaper mortgages. It might even be self financing for the government to compensate landlords for that 10% discount. Other tenants watching would be inspired to improve their financial circumstances, reducing the benefits bill further.

So how many tenants claiming housing benefit will be able to buy even with a 10% discount.

ukcarper

zagubov wrote: »

Singapore did this from 1996 onwards under its Land Acquisition Act. It forced a cartel of landlords to sell at submarket prices until the government share of land ownership rose from 31 to 76%.

Not quite the same, council will be buying up lots of properties in woking in near future.

Running_Horse

ukcarper wrote: »

So how many tenants claiming housing benefit will be able to buy even with a 10% discount.

Given how much higher rent is compared to a mortgage, it would be interesting to find out.

MARTYM8`

cells wrote: »

Why not just write a cheque to FTBs it saves the pretence and fooling around.

£15k per couple?

Probably affordable too

Yes - and wouldn't the price of every first time buyer home be increased by £15,000 on the basis sellers knew this was coming?

Why should a select group of people - including housing associatioon tenants - be gifted tens of thousands of taxpayers funds to buy an asset at a time of austerity? Cos its us council tax payers who are going to have to fund these £100,000 discounts - as its council houses which are going to have to be sold to raise the funds to bailout the HAs. Which then means less stock for other cases - and therefore a rising homelessness and housing benefit bill. which we are stuck with the bill for.

A stupid scheme - which will probably end up in the courts.

How about we just revert to the state providing social housing - you know what it used to do in the 1930s and 1950s (which worked!).

ukcarper

Running_Horse wrote: »

Given how much higher rent is compared to a mortgage, it would be interesting to find out.

I suppose it depends where you are but in London I would the sum total would be none.

MARTYM8`

Running_Horse wrote: »

Given how much higher rent is compared to a mortgage, it would be interesting to find out.

Not in London at current house prices - where the real housing problem/shortage is.

Average rent is apparently £1,500 a month.

Average house price is £500,000.

So even on that simple calculation - with a 10% deposit and a current ultra low 2% interest rate (can you get that on a 10% deposit - probably nearer 3%) the mortgage costs £1,900.

ukcarper

MARTYM8` wrote: »

Not in London at current house prices - where the real housing problem/shortage is.

Average rent is apparently £1,500 a month.

Average house price is £500,000.

So even on that simple calculation - with a 10% deposit and a current ultra low 2% interest rate (can you get that on a 10% deposit - probably nearer 3%) the mortgage costs £1,900.

If they had the 10% deposit they would not be getting housing benefit. Where I an a 2 bed sells for £240k rents for £900 a month. £210k mortgage at more realistic 3% is £1000 over 25 years.

PixelPound

ukcarper wrote: »

If they had the 10% deposit they would not be getting housing benefit. Where I an a 2 bed sells for £240k rents for £900 a month. £210k mortgage at more realistic 3% is £1000 over 25 years.

T'up north I see a lot of ex-council housing selling for £60k-£90k, the higher end going to FTB as its often been done up by a developer, the lower end by cash purchase landlords knowing they can easily get £500pcm for very little work on it. A £70K house costs you £370pm at 5% if you can find £7K deposit. Obviously you probably can get a better rate at 10% deposit or go for 5% deposit at that rate, but the fact is high rents and insistence on deposit stop people from buying. Maybe we should have a deposit version of shared ownership, the gov't pays 10% deposit but gets 10% of any future sale or option to pay final 10% at market valuation.

PixelPound

ukcarper wrote: »

If they had the 10% deposit they would not be getting housing benefit. Where I an a 2 bed sells for £240k rents for £900 a month. £210k mortgage at more realistic 3% is £1000 over 25 years.

Just because they are in council or social housing doesn't mean they are on housing benefit. There are plenty of new social housing that offers lower rents but exclude housing benefit. Plenty of working people don't get housing benefit but find private rental prices high.