Right to buy tenant plan to cost LLs £50 Billion

Chrysalis

Given mortgages are usually cheaper than renting then its logical that if someone can afford to rent privately they can probably afford to buy.

So whats stopping these people is usually tighter affordability requirements on mortgages, lack of deposit, possible bad credit markers, source of income etc.

You be surprised how much cheaper mortgages can be, average rent in my city for a 1 bed flat is almost £500 a month, a family member's 3 bed house mortgage is just £340 a month. 3 bed house's on same street go for about £750 month rent.

So you have a position of paying inflated rent's whilst at same time getting a deposit together, and also not borrowing commercially for that deposit. Its then easy to see how people can get stuck renting.

Thrugelmir

Chrysalis wrote: »

Given mortgages are usually cheaper than renting then its logical that if someone can afford to rent privately they can probably afford to buy.

With ownership comes other costs. Not as black and white as a straight monthly outgoing comparison.

Sailtheworld

Thrugelmir wrote: »

With ownership comes other costs. Not as black and white as a straight monthly outgoing comparison.

As long as someone isn't planning on moving too much then it is black & white - owning is cheaper.

The ratio of renters is increasing. It's hard to believe the main factor is anything other than more difficult deposit / finance requirements.

The-Joker

Thrugelmir wrote: »

With ownership comes other costs. Not as black and white as a straight monthly outgoing comparison.

Exactly owners have 100% maintenance

Renters call The LL when something needs fixing

It could be a new washing machine or a £40k new roof

MobileSaver

The-Joker wrote: »

It could be a new washing machine or a £40k new roof

The "£40k new roof" is another urban myth from the HPC crowd; in 30 years of home ownership with multiple properties I have never once replaced a roof or know anyone who has.

You do have to wonder why so many of the HPC crowd are desperate for a house price crash so that they can become homeowners if all they have to look forward to is paying £40k for a new roof in a few years time. It's almost as though they know such stories are complete nonsense...

Cakeguts

Chrysalis wrote: »

Given mortgages are usually cheaper than renting then its logical that if someone can afford to rent privately they can probably afford to buy.

So whats stopping these people is usually tighter affordability requirements on mortgages, lack of deposit, possible bad credit markers, source of income etc.

You be surprised how much cheaper mortgages can be, average rent in my city for a 1 bed flat is almost £500 a month, a family member's 3 bed house mortgage is just £340 a month. 3 bed house's on same street go for about £750 month rent.

So you have a position of paying inflated rent's whilst at same time getting a deposit together, and also not borrowing commercially for that deposit. Its then easy to see how people can get stuck renting.

I think if you look at how many young people buy new cars on car loans you can get an idea of why they can't get mortgages. The number of old bangers seems to have dropped a lot so there must be a lot of new cars being sold. About 20 years ago you could tell who the young drivers were by the age of the car. You can't really do that anymore.

Thrugelmir

MobileSaver wrote: »

The "£40k new roof" is another urban myth from the HPC crowd; in 30 years of home ownership with multiple properties I have never once replaced a roof or know anyone who has.

Ever tallied up legal fees, valuation fees, stamp duty etc.........

MobileSaver

Thrugelmir wrote: »

Ever tallied up legal fees, valuation fees, stamp duty etc.........

None of those things would apply to a £40k new roof, especially not a mythical one.

The-Joker

Yes of course roofs really do last forever and never ever need any repairs

This is the latest myth from the perma prop bull crowds

SpiderLegs

The-Joker wrote: »

Yes of course roofs really do last forever and never ever need any repairs

This is the latest myth from the perma prop bull crowds

My last roof repair cost about £150. Anyone needing to fork out 40k has either been negligent for 30 years or has got a buildings insurance claim.