This housing benefit towards mortgage thing...

[JigglyPuffs]

Will it only be for those actively working but receiving HB element?

I am on ESA due to long term illness, does that mean I wouldn't be able to do this?

I am in a HA property that I could get a 48% discount on, but never considered it as I assumed I would never be able to get a mortgage.

Its not something that I would probably end up doing in all honesty, but am just curious.

Im not sure they have released that much info about have they?, last thing I heard in the news was that there is no agreement with the HA to sell off the properties!

Housing Associations no longer sell properties but I have been in my home 20 years and have a secure tenancy passed over from when I signed my tenancy with the original landlords, theCouncil, who did allow the right to buy. So I have secure tenancy with the right to buy because of that.

New tenants would not currently have the option to buy.

I suspect you’d need an earned income too, and I’m not even sure they’ll get the underwriters to agree to their plan, but it’s all guesswork really until/unless specifics are released.

I thought so.

Do many people who are working actually get Housing benefit?

It does make me wonder if the housing associations will just close if the government are going to force them to sell their properties at below market and replacement rates, making it even harder for people to get affordable rents. It doesn't seem like a good business model to me.

I really cannot see this happening. Banks are reducing offers for the open market and that's without benefits.

Yes they do if they are still on tax credit top up.. and v low wage. Which makes me think this is an entirely impractical 'headline grabber' to try and persuade poorer people in red wall seats that Johnson is a caring decent chap who wants to 'level up' when in-fact he is a corrupt duplicitous shyster who has ideas with no firm idea on how they will work.

Not surprising they spout this nonsense though. Probably dreamed up in cabinet by a bunch of loyal followers who share one brain cell between 4.. (on a good day)

It will never happen. Boris just wants all the poor people to know that he cares about them. And that they may not be able to afford the heating, food or petrol but they can still dream of owning a house that they can't afford the repairs on.

I've seen repeated references to it only applying to in work HB claimants (alongside the phrase "hardworking", grr) so i assume that ESA claimants wouldn't qualify.

I'm in the same boat as you here.

Yes.

Surely though this is the opposite to getting people off benefits?

So, you claim benefits, you’re given housing benefit towards a mortgage and buy a house.

5 years down the line your house has increased in value by 25% so you sell it, and make a hefty profit at the taxpayer’s expense.

And while I realise that that would then mean you wouldn’t be claiming benefits any more if you had a certain amount of money in the bank, it does mean that people are less likely to want to come off benefits if the government are prepared to fund their mortgage.

And I am in a position where I am about to have to sell my house as I’m not entitled to any kind of benefits due to the fact I receive spousal maintenance from my eXH but when that stops I won’t be in a position to stay here. So I’ll have to sell the house and move.

So theoretically I could take advantage here but I still don’t think it’s exactly fair?

I think it will be written so that, people who already have mortgage but lose their jobs and end up on benefits, would qualify for help.
Last time I knew, they would only get the interest paid and only after a set time.

Yea, I'm not sure I even agree with it.

I'm definitely against housing association properties being put up for sale but at the same time if I had the opportunity to try and own my own home and have a small inheritance for my children I would take it. Die to my health I've never had that opportunity and never thought I would have. And probably still won't it seems, the wording just piqued my interest (and hopes maybe?!)

How does this scheme work if interest rates rise though? Does the housing benefit rise to cover it? It sounds really ill thought through

@JigglyPuffs

I think the whole scheme will go 'puff' because it's really really badly (not) thought out.

I forget which Govt Gobshite was on the radio yesterday, but it's clear no actual thought has gone into it, none of the mortgage lenders have been consulted etc etc.

I also disagree with selling off social housing, they will NOT replace 1 for 1.No way.

I do support secure tenancy/lifetime tenancy, but not the transfer of assets. We NEED those Assets to help others.

I'd have an issue with the concept of people quickly selling them for a HUGE profit. Which another (generally) FTB can't afford. I think it's really wrong.

im sorry that it means no matter what they do, you're unlikely to own a property, but I hope your 'secure tenancy' means you know you have a home for life & you can decorate etc

Interest rates are only one, of many, issues. Another biggie is the houses needing a lot of work on them to be warm & secure, which the new homeowners would have to pay.

According to the housing/social policy textbooks, councils used to run their own mortgages back in the day. I can’t help thinking that’s what it would take to iron out the problems with these proposals but I can’t see it happening.

My parents were offered the right to buy their council house many years ago. Boggled my mind as to why they didn't take it up, as they will be now paying rent until they both die. They have not claimed HB in decades... which is another uestion... some people in HA/council properties don't claim HB. I guess they wont get to take advantage of whatever this scheme is.

The HB for a mortgage I get it makes sense. If someone has got a toe on the housing ladder but looses their job it seems bonkers they can't get HB to help cover their housing costs.
Yet the same person would get help in rented accommodation. And could end up having to sell to move into rented.

Selling of HA stock is nuts. I wonder if the game plan is to turn them into commercial businesses and do away with whatever tax breaks they get.

When council houses could be sold, councils moved chunks of stock to HAs. And stopped building. If they were at risk of being sold I suspect HAs will become private businesses and the rents will increase. A very badly thought out plan.

Housing association properties are eligible to be sold op I don’t know why you think otherwise? Right to acquire is used if you don’t qualify for right to buy.