To think being able to use housing benefits as a mortgage is unfair?

My understanding is if you would currently be entitled to £650 a month in housing benefit that they would pay for a rental property for you then they would include that in an affordability statement and add it to whatever income you’re getting at the moment to calculate what you could borrow to purchase a house so you don’t need to worry about housing association or council lists …. you need to focus on getting yourself into a really good position with a part-time or full time job paying as much as possible and then they will allow you to use your housing benefit to top up to a level that could potentially allow you to purchase a home.
you’re going to need a 5% deposit and of course fees are around about £2000 as well but if you can do that, imagine your own front door.

Oh yes, what a good idea. So you work, pay into the system, save a deposit pay a mortgage. But if you dare to fall on hard times or have an accident or get ill you lose your home and are forced to rent and in the long term cost the tax payer far more than you would staying in your own home.

Peston on why it is probably just a load of hot air anyway:
twitter.com/Peston/status/1534917117035827201

Well you'll need to get higher than 130 on the list and actually get a HA or council property before you even consider it. You'll then have to live there for x amount of years before you get the right to buy and enough discount for the lender to consider it a deposit and then you'll have to pass the mortgage affordability checks. Given you are in temporary accommodation, do you think all this is feasible?

I think it's more a case that those who own homes can claim housing benefit which they cannot currently (it's a loan at best now). Take the example of a woman with two children divorcing and has £50k equity from the sale of the marital home, she can put that £50k as a deposit on a new house and claim benefits if applicable (in this example she's working pt with very young children so qualified for hb if renting)

I agree with this.

The policy is fucking stupid, they have just pulled it out of a hat to try to get the media talking about anything but partygate/confidence vote.

The worst is it will only make the housing situation worse in general

It would be ridiculous to allow housing benefit to be used to gain a mortgage, but allowing people to claim it after having an affordable mortgage and then having a no fault drop in income would be a positive thing. It’s a shame that’s not what they’re focusing on.

Why not just build more Council housing?

Because that would reduce the pressure / reliance of private renting and some tory donors people are making a hell of a lot of money in private rentals.

It would, of course, be an awful lot better for everyone else though. Particularly in areas (like mine) where there is a real shortage of normal sized family homes.

I would love this. I have been in temporary accommodation for 4 years now coming 130 when a property comes up on the list.

My doors are hanging off their hinges, I have cockroaches, a big hole in my bathroom floor, black mould and the landlord doesnt care. Neither does the council.

To think that I could have the possibility to buy a house?! I cant fantom it.

Don't think it will work overall because I can't see the mortgage companies taking the risk.

But in some ways it's a good idea if it allows or gives people a reason to improve their situation. It would be their house not some scumbag/faceless landlords.

It's going to get battered fraud wise though because the capital gain of the property, especially in areas such as London, will be even more attractive than the £ paid in housing benefit.

As for a housing crash? Supply can't keep up with the ever increasing demand. I'd expect a correction especially in areas where there was WFH related buying but whilst we keep expanding the population without a massive increase in building, the prices will keep going up.

Folk on HB are some of the very lowest earners, they will, with fuel and food inflation have no spare cash and at present will have repairs etc paid for by the landlord.
Once they are "owners" they are at the whim of interest rate rises and repair costs... which they won't be able to afford.

This policy was first announced in 2015.. so unless Sunak has a shit load of cash to bank roll these buyers, it won't happen.

It really fucks me off this crap... there are real issues we face as a country, but oh no this blond twat comes out with bullshit policies that until he trumpeted them, no one else had thought about.

They are living in another world..

*then which lenders would actually agree to a mortgage for those living on benefits or topping up working low salary with benefits? None have stepped forward

often many on benefits have had troubles with money, it’s just the way things are, so without a decent credit score, if they can find a lender into this scheme the likelihood of passing a credit check maybe low

where in the country can you find a house cheap enough to be purchased on working benefits - which top out for a single parent with childcare at approximately £40ish grand - but affordability reduced due to nursery*

I got a mortgage as a single working parent on low income + benefits on a 3 bed house that cost less than 100k in a small city. It's not completely impossible!

It's one thing buying them, but given how shoddily HA properties are built (or the ones where I live anyway), it's another finding the money to make good a never ending list of problems.

Two separate issues,
I don't have a huge issue with homeowners claiming housing benefit. Could happen to anyone be paid off, take ill, horrible that people end up loosing their home too. Back in the day people on unemployment benefit could claim for the interest on their mortgage. Basically enough to keep the bank happy while they look for another job.

Selling off Housing Association property is nuts enough people are struggling to get decent low cost accommodation. Councils stopped building because the second people moved in they bought. When will they learn?

What won't he do for a soundbite! Isn't this incredibly tone-deaf, when so many are struggling to put food on the table, bath their kids and fill up the car? And at a time when interest rates are only going up, to potentially land those already up against it and on housing benefit in even greater trouble? It's totally bonkers!

I'm all for helping folk get on the housing ladder (my kids can't see themselves ever owning their own homes), but this isn't the way. Smacks of desperation.

So you'd remove benefits from every single person who has a home in positive equity? Wow.

The reasons for the difference are that you can actually spend cash, you can't spend equity and you also don't pay housing benefit to that person. So the cost to the taxpayer is often substantially less.

I'm also interested as to where you'd be housing all of these people now you've forced them to sell?

@Wartywart yes I believe that is the plan so no people will not be throwing in the towel giving up and moving over to benefits in order to secure whatever measly amount they be allocated.

but yes if you do find yourself it hard times you won’t have the added trauma of being repossessed and renting the same property back off a landlord for twice the price honestly can’t see what people‘s problem with it is I really can’t.

You used to get the interest on your mortgage paid after you had been unemployed for 3 months. The Tories removed this and made it into a loan instead. They have also introduced a rule that you have to take any job after 3 months which will leave a lot of middle class people unable to pay their mortgages as they won't be earning enough. This 'new' scheme will ensure that they don't lose their homes and will continue to vote for these idiots.

THIS! It speaks volumes about the governments predictions of a massive recession for enough time that people will lose their homes (which usually when the British public in their wisdom flipping finally wise up and oust the Tories).

Current rules for UC for mortgages is a 9 month wait then you can apply for help with mortgage interest only and its a loan that has to be repaid. If thus dies ho ahead it will mean a major change in UC regulations.

Some people had mortgages before they ended up claiming UC so will they now get some help? This has not been thought through

Yes they will be able to save more than £16,000 any money in a help to buy ice so that can only be used for the purpose of purchasing a house will be ring fenced and not included in benefit entitlement.

So, SO many reasons selling off affordable homes is a terrible idea.

Ultimately the underwriters will say NO.

They might not be allowed to.

Yep

It's ramping up to general election, expect benefits and such to become very much talked about as a way to divide everyone.

"Ooo look at those millions of people that have never worked and just had 10 kids to get big houses and loads of YOUR cash"

And people fall for it..
You'll see benefit bashing all over MN.

But remember. Whilst lots of people were celebrating the Jubilee... Record levels of sanctions were reported, forcing many many thousands I to abject poverty. And recently, Food bank usage is running at 3million visitors and are running out of food. 3million families unable to buy food should be the shame of the nation.

The rules used to allow this, then they changed. All this means is that someone who already owns their home (with a mortagage) can claim the normal amount of housing element and not have their house repossessed rather than being made homeless and having to add to the pile of people already seeeking affordable private rent.
Noone will be able to buy on the basis of the housing allowance since you can’t accrue savings.
I think it will help a very small proportion of people who have fallen on hard times.
It’s clearly absolutely not a solution to the vast majority of people in the South East under 40 who private rent and can’t get on the housing ladder.