Trying to buy council house but been refused

Norman_Castle

LaHostessAvecLaMostess said:

The money from RTB was supposed to be used by councils to build more housing projects.  Instead, it was squandered.  That isn't the fault of the legislation, but of councils who got a payout and blew it on vanity projects rather than building new council properties.

A high proportion of rtb sales income is returned to central government with only a small amount retained by that council. As a councils housing finances are by law entirely separate from other council finances it cannot be spent on "vanity projects".

Norman_Castle

Chandler85 said:

So a home that's worth 100k, RTB gets it sold for 30k (assuming maximum discount) and the council are expected to replace the 100k home with the 30k they have... 

Councils fund new homes through loans which are repaid through rental income. There was never an expectation of a like for like replacement from rtb sales income.

Chandler85

I was quoting someone else who said they should have used the money to replace the homes like for like.

Councils weren't even allowed to borrow money against council own houses originally, hence housing trust exist.  But that's a different issue.