Debate House Prices


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Another new tax on housing for hard working families

13

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Are you serious? The reason they charge low rents is because if they charged market rents these people couldn't afford them. They would then become homeless and need to be housed by, you guessed it, the taxpayer so the Council settlement would be reduced.

    It does seem off were subsidising people to live in flats and houses when their combined earnings are very high. But it's a complicated system, that's for sure.

    of course, teachers, utility workers, nurses etc are expected to choose to live somewhere they can afford even if it means they have to commute a bit
    naturally that is unreasonable for unemployed people to have to move
  • mwpt
    mwpt Posts: 2,502 Forumite
    Sixth Anniversary Combo Breaker
    CLAPTON wrote: »
    of course, teachers, utility workers, nurses etc are expected to choose to live somewhere they can afford even if it means they have to commute a bit
    naturally that is unreasonable for unemployed people to have to move

    It is a bizarre situation when a certain group of people are classified as "most vulnerable" by Social Justice Warriors (SJWs) regardless of their actual circumstances and their right to live in cheap accommodation must never be questioned. But these SJWs don't seem to care much about the people that educate their children or look after their sick relatives.
  • michaels
    michaels Posts: 29,133 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Are you serious? The reason they charge low rents is because if they charged market rents these people couldn't afford them. They would then become homeless and need to be housed by, you guessed it, the taxpayer so the Council settlement would be reduced.

    It does seem off were subsidising people to live in flats and houses when their combined earnings are very high. But it's a complicated system, that's for sure.

    If it is unaffordable they get housing benefit, just as happens for the millions of people in identical financial circumstances to council house tenants who are on the 'waiting list' and living in private rental.

    I can't see why someone with a social conscious should be happy to see such an unfair system, people with the same income and ciorcumstances, some who through luck have a council house with a low rent, secure tenancy and disposable income and others who didn't get lucky to get a council home who have no choice but to spend all their income on housing.

    Plus two other benefits in making things fair
    Low income tax payers would have less of their money spent on subsidising the housing of higher income council house tenants
    Councils would get the actual value of their housing stock (from the tenants or from the govt as housing benefit) and would thus have the funds needed to support the housing stock and pay for soical care.

    The main losers as far as I can see would be central govt who would no longer be having the housing benefit bill artifically reduced by the councils rent policies.
    I think....
  • I looked into retraining as a paramedic recently and was shocked at the salary (~£30k in London after five years of training). I'm happy for my taxes to pay for subsidised central London housing for those doing life-saving jobs round the clock. Or for them just to be paid more.
    They are an EYESORES!!!!
  • movilogo
    movilogo Posts: 3,235 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Why removing/reducing subsidy is a bad thing? Housing subsidy should only be given under extreme scenarios - not to support someone's lifestyle at others (i.e. tax payers') expense.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    michaels wrote: »
    Well that is the GD headline out the way.

    Could you explain please?
  • DavidF
    DavidF Posts: 498 Forumite
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    Radical idea - build more social housing, Using the money "saved" long term from paying housing benefit to the BTL landlords. So after a period of time the new social housing would be cost neutral.
    The added benefit from such a radical idea would be the natural decrease in rents for the private sector due to not as many people chasing the same private rent.
    Not a great idea if you are a BTL landlord but IMHO the situation has gotten out of control and radical steps need to be taken.
    Maybe in the future the private rents will be for the more affluent end of the market with better housing than just "acceptable" ....... but we are a bit away from that yet when we can't even get legislation through the house to make it a requirement that housing is fit for human habitation.
    In essence what im saying is why is it always a race to the bottom ?
  • DavidF
    DavidF Posts: 498 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Another thing that get me - This is being touted as a removal of a subsidy....There is no direct payment from any organization to any other organization government/council or not. So the subsidy is only a theoretical subsidy - we are comparing what a rip off rent from a private landlord charges to the rent which a council actually charges to cover it's costs. It's the private rents that needs attacked not raising the social rents to make those already ripped off feel better. Im sure the private renters would feel much much better if they had lower rents and better conditions, better security ect.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    About time! But I do think that they have set the earnings a bit too low, at £30k and £40k (in London).
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • purch
    purch Posts: 9,865 Forumite
    michaels wrote: »
    Personally I don't understand why local authorities don't charge market rents for their council housing,

    Much of the reason will be that Councils, and especially Housing Associations can't be making a profit out of providing social housing.

    The rental sector has changed out of all recognition over the last 30 years, and the situation where council housing probably set "market rents" has now been turned on it's head.

    The whole concept of social housing needs to be looked at, as the housing market has changed so much. There is a need for secure tenancies and socially responsible landlords, but it is how that is provided that needs changing.

    More social housing is needed urgently, but there should be no reason why that housing should be provided at a price much below the current market rent.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
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