Social housing after the budget

mejaa

When does it come into place? Will it be in incremental brackets? Will there be extra allowances made for children?

jinxyjane

nannytone wrote: »

it seems that your rent will increase to the same level as a same sized property that is privately rented in your area

I don't think this will be the case, I am a social tenant, both me and my husband work, he earns 24,000 and I earn 2,000, we will be worse off from the budget news.


I pay £126 rent per week to my housing association, my next door neighbours house which is exactly the same as mine is privately rented for £250 per month, there is no way they will double the rent.


I imagine they will have to make it means tested, which is why they have opted to change the system in the first place because people earning £100K were still paying very low rents when they could more than afford a mortgage.


Hopefully it will then be fairer, because if they do bring it in line with private rents I will have no choice but to go bankrupt.

nannytone_2

i think i read that its april 2017

nannytone_2

jinxyjane wrote: »

I don't think this will be the case, I am a social tenant, both me and my husband work, he earns 24,000 and I earn 2,000, we will be worse off from the budget news.


I pay £126 rent per week to my housing association, my next door neighbours house which is exactly the same as mine is privately rented for £250 per month, there is no way they will double the rent.


I imagine they will have to make it means tested, which is why they have opted to change the system in the first place because people earning £100K were still paying very low rents when they could more than afford a mortgage.


Hopefully it will then be fairer, because if they do bring it in line with private rents I will have no choice but to go bankrupt.

it won't affect you if your total household income is below 30k ( 40k in london)
for those who are affected, they will have to pay the market rent, rather than the subsidised rent they currently pay.
it won't be as straightforward as paying the same amount as your privately renting neighbour...
they will work it out based on the rents of many different properties and come to a figure

beecher2

https://www.gov.uk/government/consultations/high-income-social-tenants-pay-to-stay

If you have a look at the results of the consultation on 'Pay to Stay'you can see how much further they tories have gone on this now, and the potential pitfalls there will be.

If my household income was £30,000 plus and I was in social housing, I'd be looking at my budget very closely at this point in time.

mejaa

Will there be tiers say
32000 pay x amount
34000 pay higher and so on. ?
Also will they take into account kids etc?
Can't make head nor tail ; (

GirlFromMars_2

According to the Independent, Housing Associations haven't managed to (wanted to?) implement the £60K Pay to Stay scheme yet.

http://www.independent.co.uk/voices/comment/budget-2015-pay-to-stay-will-bring-about-the-death-of-social-housing-10375705.html

Pay to Stay is an absurd scheme, and conflicts with the reasoning behind Housing Associations in the first place.

Surely with the combination of Right to Buy & Pay to Stay more Social Housing is going to be sold & end up in the hands of Buy to Let Landlords.

beecher2

mejaa wrote: »

Will there be tiers say
32000 pay x amount
34000 pay higher and so on. ?
Also will they take into account kids etc?
Can't make head nor tail ; (

None of that detail has been sorted out yet.

https://www.gov.uk/government/publications/summer-budget-2015/summer-budget-2015

The government believes that those on higher incomes should not be subsidised through social rents. Therefore, social housing tenants with household incomes of £40,000 and above in London, and £30,000 and above in the rest of England, will be required to “Pay to Stay”, by paying a market or near market rent for their accommodation. This will ensure they pay a fair level of rent, or make way for those whose need is greater. Local Authorities will repay the rent subsidy that they recover from high income tenants to the Exchequer, contributing to deficit reduction. Housing Associations will be able to use the rent subsidy that they recover to reinvest in new housing. This could raise up to hundreds of millions of pounds in additional rental income for Housing Associations. The government will consult and set out the detail of this reform in due course.

jinxyjane

Rewarding work and supporting aspiration, this was the purpose of the budget, BUT all it has set out to do is cause many such as myself worry.


I have just been back to college and paid £6000 to gain better qualifications so that I could move from part time work to full time, all with an aim of bettering ourselves and improving our situation.


My husband works full time and earns 27,000, and we bring our 4 children up on that and my part time wage of just under £2000....I thought that bettering myself and adding to the economy was the way to go now my children are becoming older.


I am beginning to now wonder why I bothered because the wage I earn will be swallowed up by the proposed "market" rents we "could" be charged.


Don't get me wrong I do believe that people who earn £100K plus should be paying higher rents or buying because most could afford to buy, but the people who will be most affected would be families like mine who are stuck in the middle ground, with not being able to afford a mortgage, or being forced to pay the new proposed market rents which will be high in my area of the South East.

bloolagoon

jinxyjane wrote: »

Rewarding work and supporting aspiration, this was the purpose of the budget, BUT all it has set out to do is cause many such as myself worry.


I have just been back to college and paid £6000 to gain better qualifications so that I could move from part time work to full time, all with an aim of bettering ourselves and improving our situation.


My husband works full time and earns 27,000, and we bring our 4 children up on that and my part time wage of just under £2000....I thought that bettering myself and adding to the economy was the way to go now my children are becoming older.


I am beginning to now wonder why I bothered because the wage I earn will be swallowed up by the proposed "market" rents we "could" be charged.


Don't get me wrong I do believe that people who earn £100K plus should be paying higher rents or buying because most could afford to buy, but the people who will be most affected would be families like mine who are stuck in the middle ground, with not being able to afford a mortgage, or being forced to pay the new proposed market rents which will be high in my area of the South East.

Why are you not claiming tax credits and child benefit?

The middle are always squeezed it's something all governments do.