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Right to Buy - Unethical/Sinister change?

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Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
    TheGardener wrote: »
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    No, not it isn't.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Name Dropper First Anniversary First Post
    edited 17 July 2017 at 5:38PM
    martinsurrey wrote: »
    I guess we could get into a debate on what "funded" means.

    If the rent is any less than market rent, then the tax payer is subsidising the rent, and that subsidy is made up elsewhere through taxation and or reduced services.

    Really - how? - Housing Revenue Accounts do not take subsidies from the 'tax payer' that would be illegal. However, individuals do have subsidies (HB) HRA (council and HA's) are simply social enterprises. The difference between the market rent and the social rent are about the profit margins and business model. The social housing rent is driven by the costs of provision - market rents are driven by profit requirements of the landlords. 'The Council' do not pay for council housing - the tenants do.
  • da_rule
    da_rule Posts: 3,618 Forumite
    First Post First Anniversary
    NineDeuce wrote: »
    Shouldnt happen. The tenants should at least have to pay market rate.

    What do you mean by "market rate"? Do you mean market value? In which case that is what happens. When you make your application a valuer will visit the property and value it based in its condition/location, whether it's freehold etc. It will also be valued based on it being sold with vacant possession by a willing seller to a willing buyer.

    This price is then used as the base from which the discount amount (percentage based on type of property and how long you've been a tenant) is calculated.

    The process hasn't changed. The calculator is a rough guide, so what you were told is essentially correct, put in what the property is roughly worth and you'll have a good indication of affordability.
  • Richey_
    Richey_ Posts: 334 Forumite
    You live in tax payer subsidised accommodation yet earn enough a bank would give you a mortgage for £600,000!!

    :wall: :wall: :wall:

    It must be tough to earn a six figure salary and have to save up £96,000 and then get a £104,000 bonus by way of a the discount you will receive.

    May I please suggest a help to buy isa (if you can with that discount) as that will then provide more tax payer funded free money for you.

    Please do keep us posted as to how you get on:beer:
  • FBaby
    FBaby Posts: 18,367 Forumite
    First Anniversary First Post Combo Breaker
    It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.
    Unless it is the children of someone who's been on HB all their lives who buys with the parent.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Name Dropper First Anniversary First Post
    FBaby wrote: »
    Unless it is the children of someone who's been on HB all their lives who buys with the parent.

    Over the last year or two almost all councils have changed their tenancy agreements to make 'succession' only available to partners, not their children.

    Anyhoo - I never said I agreed with 'right to buy' I just wish people understood how its funded and get off the indignant "its tax payers who pay for it" rant - cos really - it isn't and there are far more intelligent arguments. The real crime is in the private sector rents and lack of new build social housing. Anything else is just a distraction :)
  • CD*_2
    CD*_2 Posts: 9 Forumite
    Zizou wrote: »
    Hi

    I was using right to buy calculator righttobuy.gov.uk/right-to-buy-calculator and have noticed that they have switched off auto-calculation for 'Insert an estimated value of your property'.

    ...

    The government have changed the rules snidely behind the backdoor, making it more difficult to buy!!

    In my experience Councils routinely undervalue their housing stock, for reasons unknown,
    so that RTBers effectively get a bigger discount.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
    TheGardener wrote: »
    Politics about 'right to buy' aside - the 'tax payer' does not fund council housing. It is wholly funded thought tenants rents unless the tenant in question is in receipt of HB - in which case they are unlikely to get a mortgage.

    True if it is used as council housing.

    If it's sold under RTB, those huge discounts are definitely council, and therefore taxpayer, funded.
  • Cheeky_Monkey
    Cheeky_Monkey Posts: 2,072 Forumite
    Zizou wrote: »
    Hi

    I was using right to buy calculator righttobuy.gov.uk/right-to-buy-calculator and have noticed that they have switched off auto-calculation for 'Insert an estimated value of your property'.

    When I spoke to them they said now you have to enter the value of the property you are trying to buy, which is based on the market value (inflated - estate agent prices), and then it will calculate your discount for e.g.

    3 bed flat in East London Zone 2 in London was sold by an estate agent for £800,000 so the council will now take this figure and then add whatever discount is available in that area (104,000). This flat will now cost you £696,000 to buy! (And the funny this is that bank can only lend you up to £600,000, and the rest you have to put that as a deposit!)

    The government have changed the rules snidely behind the backdoor, making it more difficult to buy!!

    That's excellent news - thanks for letting us know :beer:
  • ScorpiondeRooftrouser
    ScorpiondeRooftrouser Posts: 2,851 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Red-Squirrel wrote: »
    True if it is used as council housing.

    If it's sold under RTB, those huge discounts are definitely council, and therefore taxpayer, funded.

    What's going on at the moment? Every time somebody says that RTB is taxpayer funded, somebody comes along and starts arguing that renting out council housing isn't taxpayer funded, as though anyone has disputed that. I am getting deja vu.
This discussion has been closed.
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