To not understand how social housing is subsidised?

[Lighthouseturquoise]

I live in a housing association rented house.

My rent is £420 pcm, the house is valued at around £120,000. The house was built 15 years ago and was worth nowhere near £120,000 at that time and I doubt it cost near that to build.

I've lived here for 10 years so I've paid around £50,000 in rent. If I lived here for 25 years I'd have more than paid for the value of the house. Over 50 years the rent will have doubled the cost of the house.

In what way are these properties subsidised?

[Lighthouseturquoise]

On another note of social housing being below market value.

A private rental of similar size would fetch £450-£500 pcm round here but would be in better condition with modern decor, kitchen and bathroom.

The kitchens and bathrooms in social housing tend to be of a very low standard and flooring and decor and all the responsibility of the tenant.

[nancy75]

When people say it they mean you are not paying market rent, if the flat was privately owned the rent would probably be a fair bit more than you pay ( no judgement from me just explaining)

[AllPowerfulLizardPerson]

What would you be paying in rent for a similar property as a private rental?

More?

That's the subsidy.

[Lighthouseturquoise]

Cross post. This property is below market rent but not massively so, we are not talking hundreds of pounds.

As I say I'm not sure some people realise what poor condition many social housing rents are.

They are not usually like for like with private rentals.

[MillionToOneChances]

If you were paying a mortgage (or a private landlord were paying a mortgage) the total repayments would be far higher than the purchase price of the house due to interest.

Your rent is below market rate, that's how it's subsidised. And you have a secure home without risk of being evicted provided your behaviour is fine.

[longtimelooker]

Its not even always the rent being cheaper I know in some areas there isn't a great difference, its the security.

You simply will never have the same security privately renting.

[nancy75]

Where I live the difference in ha and private rent really is massive, I think a ha house is about 600pcm compared to private rent of around £1300.

[UterusUterusGhali]

It isn't. It's a falasy.

I think people think the government pays your rent or something.

[UterusUterusGhali]

*fallacy FFS.
FUAC

[nancy75]

And to be honest lots of private rentals are in a pretty shit condition too, the last time we were looking for a house to rent I saw some that were so bad that I left after seeing 2 rooms. These were places with rent over £1500 a month!

[BombadierFritz]

it isnt subsidised, is the short answer

[Lighthouseturquoise]

I'm not complaining about my home and personally I'm moving out shortly anyway as I'm now able to buy so I'm certainly not feeling hard done by.

Like I say though private rentals are £450-£500 but much, much better houses.

The secure tenancy is of course the wonderful thing about it but it's certainly not a free house as some would like to believe.

[greenfolder]

Round here the difference is huge. 3 bed semi is £550 a month. Private rent nearer a grand. And that's before you think about not having a secure tenancy.

[fastdaytears]

It sounds like there is a bit of a difference in the market rent for you but not huge. The security is worth more than the lower rent I would have thought.

Also, don't overestimate the standard of privately rented properties.

[Lighthouseturquoise]

Nancy I see, I guess it varies in areas. There isn't really a huge house shortage around here.

I do have a couple of friends who've recently bought similar size new builds and their mortgage repayments are less than my rent. Perhaps over a long repayment period but still.

[fastdaytears]

but it's certainly not a free house as some would like to believe

Anyone who says that is an idiot who can be ignored!

[HelenaDove]

On a different but not entirely unrelated note ive been on a thread with another MNer today who has been waiting 8 weeks for her heating and hot water to be fixed.


its HA. A private landlord who did the same would be more likely to be fined.

[fastdaytears]

their mortgage repayments are less than my rent. Perhaps over a long repayment period but still

Mortgage payments are usually lower than rent, that's not a social housing issue.

[longtimelooker]

Yes but most people who are in the position to get a mortgage wouldn't chose to go into social housing ...

[AndNowItsSeven]

It's not subsidised, private rents are inflated.

[nancy75]

I think the waiting list round here for a council house is about 10 years, I think you'd be more likely to get a unicorn for Christmas than a council house!

[UterusUterusGhali]

My HA rent is nearly £700pcm. That's more than a lot of people's mortgage.
It's in a really poor state.

The security of the lease is great, but I imagine that won't last long under the Tories tbh.

Some people are horribly jealous of people in social housing, bizarrely, so say it's subsidised to have something to rage about.

[SaucyJack]

I wouldn't waste your breath OP.

The social housing model is going the way of VCRs and high street shopping.

It's become the norm now for one individual to pay £15K per year straight into another individual's pocket to rent a house they could have bought themselves for £50K 20 years ago, and there's sadly now something seen to be wrong in the non-profit model still used by councils and HAs.

People just can't get their heads around councils/HAs renting out houses cheaply just for the sake of providing homes for people- instead of leeching as much cash out of them as possible.

Sad times.

[SillySongsWithLarry]

I'm in a private owned flat. I can't afford to do basic repairs that would be done if it was a rental - social or private. When the mortgage is paid off I will have paid 2x the value of the flat. The benefit is it is my flat. Social housing is as rare as hens teeth round here so the security that offers is very sought after. Then rent is about 80% market values for social housing round here.

[UterusUterusGhali]

Helena that's true enough about repairs. They simply don't get done in social housing and you certainly couldn't withhold rent if you had no hot water for a couple if weeks.