Opinion on Right to buy

da_rule

Norman_Castle wrote: »

I believe a large proportion of income from sales is returned to central government reducing further the available funding for replacement properties.

Yes they do take a cut. This article gives a good illustration of how right to buy income is divided: https://altairltd.co.uk/2017/01/local-authority-right-to-buy/

There was a consultation last year on changing this (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/733469/Right_to_Buy_consultation.pdf) but that doesn’t appear to be progressing at the moment.

csgohan4

It should be banned, it's only benefitting those buying and then selling after 5 years at the tax payers expense.


then takes 1 less home for the needy. RTB is for the entitled generation and it should be stopped

Nullboris

RTB is wrong and should be stopped . It was a stunt , that perfectly suited MT , turning, supposedly, labour voting TENANTS , into tory voting OWNERS. (max discount 70%) Councils were not allowed to use ANY of the money to build new council houses, so it helped to lower council taxes (while gov slashed central grants to councils).
HTB is wrong and should be stopped . This is a sop to their construction co buddys who will contribute muchly to party coffers and possibly offer the odd directorship or consultancy to aged Politicos.
It keeps prices inflated a ta time when they are too high, also.
Oh and why would anyone buy a council house ? Up to 70% discount , then sell on, and re-locate, get another council house , rinse and repeat .... (not everyone)

SnooksNJ

seven-day-weekend wrote: »

A secure Council tenancy is the most secure form of tenancy there is. Having said that, I cannot blame people for wanting to buy a much-loved home.

Hardly scientific but based on this message board it would seem people who grew up in a council home are much more sentimental about it than those who grew up in a home with a mortgage.
When my parents told me they were downsizing I was like OK. Whereas posters on here inquiring about Right to Buy on their childhood home are devastated about the prospect of losing their childhood home because right to buy doesn't extend to them.

KatieDee

The way in which you pay your rent in order to accrue the discount is not taken into account - which means that you could claim Housing Benefit to cover your entire rent, then benefit from the huge amount of discount when it comes to buy. This is the part I disagree with, as you're essentially being subsidised to buy property, which you will benefit from massively when you come to sell.

I think any rent paid via Housing Benefit should be taken off your overall discount. Better yet, just sell them without discount. If you've been paying a very low rent for a significant period, one would hope you've taken advantage of this and saved some money. It is amazing how many people I've known who swear blind they cannot afford to pay top up rent of £14 a week, but then somehow manage to stump up a few grand to buy their home.

I don't see any reason to buy a council property other than to maximise profit. You have a secure tenancy and you'd be very unlikely to be denied a succession in the event that a family member passed away. All of your repairs are paid for, any improvements to the property as well. I completely understand the urge to own your family home, but a huge number of RTB are sold on after the 5 year period anyway, so I don't think this is the pull for many.

In regards to Help to Buy, I think this is an accident waiting to happen. It is giving people the impression that they can afford houses out of their budget, without taking into account the loan aspect of the HTB and the fact that they're paying an enormous premium on a sparkly new build. I cannot understand why people don't see the problem with this and I can see it causing huge issues in five years or so, when people start selling to move to something bigger (most new builds are teeny tiny).

csgohan4

It's a gov scam the HTB, they are the ones benefitting when they the 20% they loaned you is generally more in 5 years time, the Gov are laughing all the way to the bank

FTBAngst

Wow thanks everyone. I don’t agree with HTB at all. It’s feels like a collossaly poor idea. I just wasn’t sure if HTB was the equivalent to RTB in terms of the government helping people buy a house. But RTB doesn’t seem to have level disadvantages as HTB.

sevenhills

FTBAngst wrote: »

But now as House prices are higher than salaries/ affordability and people in their 20s-30s are unable to afford a property, the right to buy feels almost unfair. Is that an unjust opinion? How does it stack up against help to buy?

A large discount amounting to over £25,000 is unfair, but there are other perks which people get that could be deemed unfair. I bought my council house, even though I am 55, it was my last chance to buy.
It does make you feel different, a mortgage can be paid off faster and things can go wrong with your health later in life.


But being £30,000+ ahead has got to be good.

sevenhills

paddedjohn wrote: »

I own my own home, my kitchen is about 20 years old and due for replacement but it's me who will have to foot the bill.

As I understand council rents, repairs are paid for by the rents. You bought your own home, so I would assume you think that is cheaper/better option?

James_Green_1982

da_rule wrote: »

Right to buy and help to buy cannot really be compared.

Right to buy is only available to secure tenants of Councils (and housing associations under the preserved right to buy). Whereas help to buy products are available to a lot of buyers.

Personally I think you are far more secure being a secure tenant than owning the property. If you own it and don’t pay the mortgage then the lender will take it off of you. If you own it and don’t insure it and it gets damaged then you have to pay to repair it or sell it cheaply. If it’s leasehold you’ll have to pay service charge, which given that a lot of Council stock is aging can be very expensive.

If you are a secure tenant and the house falls down the Council will rehouse you. If, as you get older, your needs change they will adapt the property or move you somewhere more suitable. They will take care of repairs. You will get new bathrooms and kitchens on a fairly regular basis. I can never fathom why someone would forfeit this by buying the property.
.

I agree - but there's also the protection you get from lawsuits, creditors, bankruptcy eviction etc. If you own a house it's an obvious target.