To think there's a worrying number of people who are under the impression that Local Authority housing is free?

[MrsWinnibago]

I've read things on MN a few times which make me realise that some people seem to be under the impression that if you live in a council house or a housing association house then you don't pay for it.

They seem to think that people in these properties get full housing benefit as some kind of default!

Am I wrong? Please tell me I'm wrong. It's a minority of people who think this yes?

Maybe it's the sort of person like me who thinks this. (throws self in lion den)

SO, for example, I know a woman who is a single mum, does not work, lives in a 3 bed house. How can she pay if she earns nothing?

Or does she pay with money she was given by the gvt?

I did not think the rent was "free" as such, but that she got some kind of benefits to pay for this house?

She has not worked for years. So where does the money come from?

(the only excuse I have is I am foreign and have only lived here for 5 years myself, so not that well informed on benefits system in the UK)

I do think that to a certain extent, this is because of such shortage of LA housing that often the only people who get one are the people who are the most in need, and therefore are more likely to be entitled to full housing benefit, so in effect, have been 'given' a free house, because while they are charged rent, it's covered by HB - it costs them nothing.

In many areas, as older people are leaving LA housing, they are only being replaced by people who are not paying for it themselves. They are being housed 'for free'.

BravePotato - so yes, you are right, that woman's rent is just an exercise in one government agency giving money to a different governement agency.

But Brave, not everyone in social housing isn't working.

I live in a council house. I've had my boiler/central heating updated (had an old 1950s back boiler) this year. And also had a new roof put on as the old one was the original 1920s roof. They were both things which needed doing that any landlord would have had to have had done.

I work. My partner works. We pay full rent and council tax.

I live in a terrace of 4 houses. 1 of them is privately owned. Of the other 3, we all pay full rent.

posted too soon! Meant to say, so if the only people you ever meet who get a council house are the people who are entitled to full HB, you might reach the conclusion that council housing is 'free', because the only people who use it are getting it for free.

Yes LA housing is subsidised, subsidised for both the occupant when paying full rent but also helps keep HB bill down. Which I think some people forget, with more people having to go private and then claiming HB its pushing the HB up, build more affordable housing and keep HB bill down, but then with so many government MPs being landlord themselves that's not going to happen

I grew up on housing estates. I recall most folk worked, there was very little private housing. Many either bought their CHs or moved on to private once new private estates started being built.

Well on netmums there was a/lady who believed la/housing was only for those who didn't work a d claimed benefits the op was about to made homeless and wanted to know if the council might help her she and her husband worked fulltime and somebody replied she had no chance of getting council housing if she worked so I guess in this persons mind LA housing was free as people get housing benefit! I tea!use lots of people work and pay rent to live in LA housing but not everybody does!!

I realise.

I've lived in my housing association house for 9 yrs, was a single parent after escaping an abusive relationship and received hb.
Fast forward a few years, met dp, after a while he moved in, all above board so no longer entitled to hb as his salary was above the threshold.

However, a lot of people assume that housing association/council properties are full of people who don't work and claim benefits.

I still feel there is a stigma attatched over not owning your own home.

The benefits of housing association properties is that repairs aren't our expense etc but I feel like we're trapped here as can't afford a bigger house.

That's just my experience of it.

I've seen the 'free' thing several times on here and always jump in to correct but I suspect I'm wasting my time. People just like to froth ignorant rubbish sometimes.

I also dispute that local authority or housing association properties are in any way 'subsidised'.

With the exception of any housing benefit that the residents may or may not get - so? Private tenants also get housing benefit. No one says 'private rentals are all subsidised', do they.

There are no 'subsidies' directly for social housing. They do not make a profit. That's not the same thing as subsidising them. They do not cost anyone else anything (housing benefit comment above). The rents collected have to cover all the costs of the properties - maintenance, staff, admin, etc etc etc. They are not allowed to run at a loss. They do not make a profit for anyone.

I thought they were free for years. Don't now, obviously.

It was because my grandmother had one and didn't pay rent and had friends at school who lived in council/HA houses and their parents didn't work. So I assumed they were free. Made sense. I didn't know about HB back then.

I was about 20 when I realised they weren't.

YANBU.

I had workmen here to replace the doors. They commented that I shouldn't have had a choice of what doors I wanted BECAUSE I GOT THIS HOUSE FREE.

WTF? Tell the council that then and I'll stop paying the rent...

But what's left of council housing (most was transferred to housing associations under New Labour) has been subsidised, in multiple ways. Councils built houses using direct subsidy; rents were historically kept well below market levels using direct subsidy; capital investment was made either using subsidy or cheap (subdised) loans; and new-build properties are usually..... yes, subsidised (or the loans are). On top of that, the vast majority of social housing tenants are in receipt of Housing Benefit (whether they're in work or not). Furthermore, the opportunity cost to the state of providing a product or service without profit also represents a form of subsidy.

While social housing isn't necessarily 100% free, it actually often is (or near enough to make no difference). The majority of owners or private renters would be absolutely gobsmacked to see just how little contribution the vat majority of social tenants make towards their housing costs.

None of this changes the fact that social housing is important, but people should be aware of the realities of the situation.

Local authority housing is not free and nor is any other type of social sector housing.

They are subsidised though, which the DM fails to acknowledge and loves to mention in article about ' Eastern European Muslim single mum of 10 gets free house in Belgravia' .

In fact some new social sector tenancies have rents more in line with private market rents. Due on a monthly basis too.

In my eyes its the language used. People are "on a waiting list to get a house", rather than " to have the opportunity to rent a house". Gives people the wrong idea.

Yanbu.

we live in a 2 bed HA house and were looking at a mutual exchange to a 3 bed HA house. Its only me, dp and dd so lots of people (intelligent people!!) commented on the fact that we may struggle in a 3 bed as we would have to pay the bedroom tax.

they couldn't understand that the bedroom tax has nothing to do with us as we don't claim HB.

I rent a house from the council, I pay full rent. How am I being subsidised? Since moving in we've had to redecorate the whole house and have both the front and back garden ripped up. The house and gardens were a right state, when the housing officer met me at the house to sign my tenancy agreement her shoe stuck to the floor as she was walking it was that bad. I would say ive subsidised the council by improving their house for them

Yep same as us anyoldname our house was vile when we moved in, and still has a lot to do to it now!

our back garden is unusable, for us to get it useable it is going to cost at least £1500. That will be coming out of our pockets, how am i being subsidised??

I certainly thought it was at least heavily subsidised, but if someone had asked me I wouldn't have known for sure.

My Dsis (who is sitting reading this with me!) lives in a housing association house within a mixed private/h association estate. She pays full rent of £415 pcm and full council tax of £191.25 a month.

Yes the rent is reasonable but not cheap and more than a mortgage for the same property. Her council tax is the same as her 'private' neighbours.

Yet some of her private neighbours believe the 'council house lot' are all so lucky having super cheap housing.

lemele What exactly did you think was subsidised? Did you think it was subsidised for ALL residents? Just those who are on benefits? Or did you assume that you can't live in one unless you ARE on benefits?

Wild your sister's rent is a bit less than ours and council tax is similar. I could get a bigger private rental for about 150 more a month but to be honest what I like here is the knowledge that we won't be kicked out as soon as the landlord wants to sell.

We pay full rent in a council flat (both work, never claimed HB or anything other than CB and Tax Credits) - it's not subsidised, that would imply that the council is partly paying the costs of renting it out. What it is is not making a profit. They've paid off the costs of building them many years ago, the rent I pay pays for maintenance and upkeep, unlike most private landlords who are also paying mortgages (and possibly making a small profit?)

Councils don't charge 'full market rents' because they don't have the same costs, and they aren't supposed to make a profit from social housing.

I do wish people would stop harping on about the fact that social Housing tenants are supposedly subsidized by the tax payer - just because something is cheaper doesn't mean that its being subsidised.

A lot of social Housing is now provided by Housing Associations and the very fact that they are NOT ALLOWED TO MAKE A PROFIT is the reason why the rent is lower than private sector renting,where as private landlords are solely in the business for profit. You also have to take into account that many LA houses were built decades ago when building costs were cheaper.

Social housing actually brings in revenue for the government,in fact for 3 years from 2008 -20011 the government made a hefty of £713m from 2 million council house tenants in England.

BravePotato - I'm not sure if anyone answered your question.

When people in the UK are out of work they are given benefits. One of their benefits will be Housing Benefit to pay their rent or the interest on their mortgage.

However, this does not mean that Local Authority housing or Housing Association housing is free, nor does it mean that all tenants who live in those flats/houses are not working or are in receipt of benefits.

Wow, rent of £415 is 'not cheap'!
I realise it's just a location thing but that wouldn't get you a garden shed here. £1100 a month for a 2 bed flat here.