Right to buy: Housing Associations

wotsthat

Graham_Devon wrote: »

http://www.theguardian.com/money/2015/sep/16/london-council-sets-up-as-private-landlord?

Interesting, considering this discussion.

Also confirms that it's revenue generating.

£45m for 144 flats = £312,500 each - the builders saw them coming. Have a look at how much similar flats have gone for recently on the same road http://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=STREET%5E1651915&searchLocation=Abbey+Road&referrer=landingPage

About £100k less? Funny how much more careful people are when spending their own money rather than other peoples.

3.6% gross yield so before financing, voids, the costs of the independent company they've set up to manage them, ground rent and any maintenance. That's a really expensive train set the council have bought for themselves to play with. Can't wait to see what this place is like in a couple of years.

The problem is going to get worse if this is the solution. Madness.

Graham_Devon

wotsthat wrote: »

The problem is going to get worse if this is the solution. Madness.

Indeed. Much better a the solution to give BTL landlords over a grand a month for these families.

Let's face it, you will be against absolutely anything which directs money away from BTL landlords. And that's the end of it really.

wotsthat

Graham_Devon wrote: »

Indeed. Much better a the solution to give BTL landlords over a grand a month for these families.

Let's face it, you will be against absolutely anything which directs money away from BTL landlords. And that's the end of it really.

I'm more for solutions which address the root causes of problems rather than living life trying to punish people who have made it on my arbitrary naughty list.

Cut HB to zero tomorrow as far as I'm concerned - see if I care.

ukcarper

wotsthat wrote: »

£45m for 144 flats = £312,500 each - the builders saw them coming. Have a look at how much similar flats have gone for recently on the same road http://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=STREET%5E1651915&searchLocation=Abbey+Road&referrer=landingPage

About £100k less? Funny how much more careful people are when spending their own money rather than other peoples.

3.6% gross yield so before financing, voids, the costs of the independent company they've set up to manage them, ground rent and any maintenance. That's a really expensive train set the council have bought for themselves to play with. Can't wait to see what this place is like in a couple of years.

The problem is going to get worse if this is the solution. Madness.

It's not 144 the block includes social housing aswell the 144 are just those going on open market

wotsthat

ukcarper wrote: »

It's not 144 the block includes social housing aswell the 144 are just those going on open market

Not how I read it. I double-checked against Boygues web site and they refer to this as the second phase and a block containing 144 units total.

http://bouygues-uk.com/bouygues-development-reaches-key-milestone-at-barking%E2%80%99s-abbey-road-creative-ice-house-quarter/

Graham_Devon

wotsthat wrote: »

£45m for 144 flats = £312,500 each - the builders saw them coming. Have a look at how much similar flats have gone for recently on the same road http://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=STREET%5E1651915&searchLocation=Abbey+Road&referrer=landingPage

This is about having one contained block.

Sure, you may well be able to get flats dotted around the area cheaper. But having them all in one block is beneficial in many numbers of ways for the council.

Knowing the cost of everything is great. Knowing how to something as cheap as you can is great. But value plays a key part in these decisions and the value of having one single contained block is worth quite a bit.

wotsthat

Graham_Devon wrote: »

Knowing the cost of everything is great. Knowing how to something as cheap as you can is great. But value plays a key part in these decisions and the value of having one single contained block is worth quite a bit.

Worth £14.4m (144 x £100k)? 32% of the total cost?

Maybe it is when you're spending other people's money.

ukcarper

I

wotsthat wrote: »

Not how I read it. I double-checked against Boygues web site and they refer to this as the second phase and a block containing 144 units total.

http://bouygues-uk.com/bouygues-development-reaches-key-milestone-at-barking%E2%80%99s-abbey-road-creative-ice-house-quarter/

The article says it's sold both phases to council so 278 properties so £162k per unit.

wotsthat

ukcarper wrote: »

I
The article says it's sold both phases to council so 278 properties so £162k per unit.

No it's very clear..

The acquisition of the Abbey Road apartment block cost the council £45m which was funded through a £130m credit facility it secured from the European Investment Bank at below-market interest rates.

The block contains 144 units - that's very clear too.

Not a one-off either.

http://www.barkinganddagenhampost.co.uk/home/construction_firm_bags_41_5m_contract_to_regenerate_barking_estate_1_4180332

A contract worth about £41.5 million has been awarded for the first phase of Gascoigne Estate’s regeneration.

Construction firm Bouygues UK will deliver the first 190 homes in the East Thames and council-funded project to renew the eastern end of the Barking estate.

£218k per unit - they must be the 'affordable' ones.

ukcarper

wotsthat wrote: »

No it's very clear..



The block contains 144 units - that's very clear too.

Not a one-off either.

http://www.barkinganddagenhampost.co.uk/home/construction_firm_bags_41_5m_contract_to_regenerate_barking_estate_1_4180332



£218k per unit - they must be the 'affordable' ones.

From your link
"Bouygues Development has sold both phases of the development to the London Borough of Barking and Dagenham, which will rent the residential units.

The first phase comprises 134 residential units, 52 car parking spaces and 9,700 sq ft of creative and commercial space. The second phase of the scheme currently underway will provide a further 144 apartments and 5,400 sq ft of creative and commercial space across two additional buildings to be let by the Council, the majority of which will be let to people in employment."