Buying cheaper than social housing for half the country

cells

Average social rents are ~£385 pm PLUS THEY GO UP YEARLY
Mortgage with 10% deposit 3% interest rate.

North East & North West average terrace price less than £70,000
18 year repayment mortgage, repayments of £378 a month

Yorkshire&Humbar Average terrace price is less than £79,000
21 year repayment mortgage (£380pm)

Wales average terrace price is less than £83,000
22 year repayment mortgage (£384pm)

E-Midlands & W-Midlands average terrace price is less than £90,000
25 year repayment mortgage (£384pm)


So all cheaper than the council rents and you get to keep the house at the end of the 18 - 25 year period with no rent or mortgage to pay. Also the mortgage is more or less fixed for the term while the social rents just keep going up (greedy social landlords!)


So what do the crash wishers think?
Is the north and Midlands and Wales, home to more than half the population and housing stock expensive when it costs less than social rents?

westernpromise

Crash wishers are poor or live in the south or both.

Carl31

i think you should send this to George O

Then he can stop his maniac actions against BTL landlords

cells

Even for other regions it is close

Scotland
27 year repayment mortgage is more expensive than social rents for the first half and then less expensive for the second half

South West.
A 30 year repayment mortgage would be more expensive than social rents for the first half of the mortgage and then cheaper for the second half of the mortgage

East of England
A 33 year mortgage is more expensive than social rents for the first half of the mortgage then cheaper for the second half of the mortgage

South East England
A 38 year mortgage is more expensive for the first half and less expensive for the second half

cells

Wonder if the crash wishers will highlight this and debate it? or just ignore it and keep insisting prices pretty much everywhere are expensive

cells

It is actually ~85% of the country where buying the average terrace is cheaper than social rents. At 3% interest rates any house bought for £170k or less has a lower monthly interest payment than average social rents.

Also social rents go up while that £170k or less purchase price is fixed.

cells

I have made a mistake!!!!

The Scottish land registry actually differentiates between mean and median average prices and the median price is a good deal lower than the mean price! And that should be true for England too

So for instance the mean average price for all properties in scotland is £169,397 (median = £144,795) and for terrace homes it is £137,607 (median £ = £112,000 )

The median seems to be about 15%-20% cheaper than the mean.

So the median terrace home in England&Wales is likely to be 15-20% cheaper than indicated by my previous posts!

Well done Scotland. The UK land registry should do the same and post up figures of median and mean averages and the median average (more important for affordability) is going be lower than the mean

Once again the north and midlands and wales and even scotland looks dam good value

michaels

Housing Benefit......
Discipline to save for a deposit
Are these rates for a 17 year fixed rate mortgage?

cells

michaels wrote: »

Housing Benefit......

Do you think it might be worthwhile the government paying a 'mortgage benefit' that is of course no more than the £385 people get for social rents

At least that way, within 18 years for the north west and north east, and within 22 years for wales and Y&H the government wont have any more to pay rather than perhaps 60 years to a social landlord. It would also give the poor something to pass onto their kids rather than a social tenancy which will cost the government another 60 years of housing benefit

something to consider...

michaels wrote: »

Discipline to save for a deposit

well if someone cant get together £7k - £10k then they probably cant manage a households finances. sadly their problem has nothing to do with housing or its cost and more to do with a basic lack of common sense

michaels wrote: »

Are these rates for a 17 year fixed rate mortgage?

17 year fixed mortgages do not really exist in the UK its typically 2-3 and to a lessor degree 5 year fixes. However in the USA 15 and 25 year fixes are the norm im told. Maybe the banks need to start offering 15-25 year fixes in the UK I think the 15 year fix rates in the usa average about 3.2% interest

thequant

cells wrote: »

Do you think it might be worthwhile the government paying a 'mortgage benefit' that is of course no more than the £385 people get for social rents

I remember this idea being mooted in the 80's for the reasons being discussed in this thread. I remember my parents discussing the scheme and deciding if it went ahead they would not partake. Main reason being they didnt pay rent anyway (as they were on benefits) and would lose out on having a new kitchen every 5 years provided by the council.

Graham_Devon

I think the point has been somewhat missed.

Social rents are usually "paid" by social tenants. By that, they will usually be receiving housing benefit. This will be due to a variety of reasons such as diability, low income etc etc.

You can't get a mortgage and pay via housing benefit.

So it's all a bit academic really.

That's without looking at the fact you are comparing social rents as a national average and comparing them against local house prices. Social rents in the localities you are looking at are likely to be lower in the first place, so your sums won't work.