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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

£55000 to give up my council house?!?

196 replies

Edenviolet · 16/02/2015 21:49

AIBU to be in complete shock that the council offered me the above amount today to buy a home in the private sector if I relinquish my secure tenancy three bed council house?

It seems like an awful lot of money? Just for one house. Why don't they just build more social housing instead of paying out grants like this?

OP posts:
OhTheThingsYouCanThink · 17/02/2015 08:36

Exactly what EdSheeran said. DO NOT MOVE!

adsy · 17/02/2015 08:40

sweet Jesus. no wonder the government has no money.

BrendaBlackhead · 17/02/2015 08:40

No way.

I did read they had to crack down on this a while back because some people were taking the money and then boomeranging straight back into social housing by applying in a different borough.

aurorablues · 17/02/2015 10:16

To the PP whom seem to think the Council are offering the OP money for nothing that is certainly not the case. They are offering her money to buy her out of a secure tenancy contract. A legally binding document.

There is no guarantee either that the council will continue to use her home as social housing to house another in need family if she accepted, and if they were to sell it privately, they would get an incredibly large sum of money for it. There would also be one less council home in London which doesn't solve the housing crisis at all.

Having thought about this a bit last night i find this scheme a little concerning. Someone in a vulnerble position would see a cheque for £30 - £55 thousand an incredibly large sum of money and could essentially accept it without any advice and put themslves in a terrible position down the line.

In the letter you received, do they offer any free legal advice or representation concerning this type of deal?

sparechange · 17/02/2015 10:22

"Having thought about this a bit last night i find this scheme a little concerning. Someone in a vulnerble position would see a cheque for £30 - £55 thousand an incredibly large sum of money and could essentially accept it without any advice and put themslves in a terrible position down the line."

They aren't told 'here is £55k if you can pack your bags and be out by the end of the month'
It is £55k towards buying a house. Which would require taking advice from a mortgage company, and then having a mortgage interview where their finances are stress tested to make sure they don't put themselves in a terrible position down the line. This isn't a lump sum for people to piss up the wall on holidays and flash cars

Only1scoop · 17/02/2015 10:28

I remember my friend taking a large sum years ago. Got her on the housing ladder. I was stunned at the time at how huge the amount was. Didn't realise they still did it.

Original poster
Edenviolet · 17/02/2015 10:33

It does say on the scheme info that you have to meet with the council and they do some checks to make sure you are suitable for the scheme but the main criteria is just having a secure tenancy for 12+ months and having no arrears

OP posts:
aurorablues · 17/02/2015 11:01

sparechange i wasn't making that assumption that people would take it and piss it ip the wall, or spend it on flash stuff. Way to stereotype claps slowly

But in this day and age there are many people whom may not be ready to be accepting of such a thing due to circumstances, but could accept it anyway becaue they feel it's the right thing to do. Also it seems like a large sum of money, but in reality looking at London and surrounding areas for a like for like property, it barely covers a 10% deposit.

Eg: A family with additional needs moving all the way away from thier support network into an area with very little work prospects because that's all the money could afford could, potantially put themselves in a very bad position down the line and in need of another council property.

On paper they could look like the perfect client, and their finances could be stable but still that's not really looking at each individuals circumstances fully is it?

The Council are effectively buying peoples security from them and could potentially put a family in a more vulnerable postition.

ShadowSpiral · 17/02/2015 11:15

Morethan - I live in the north. I've just done a quick search on Right move, and within 40 miles of me, there's 296 three bed houses on for between £50k and £60k. When I took the minimum price off, there were 567 three bed houses under £60k offered. Haven't looked too closely at the details but I'd guess they're likely to need some work and / or not in a great area.

However, it's no good being able to buy a house outright for £55k if there's no jobs nearby for the OP's family.

I'd stay put if I was the OP, given what she's said about their circumstances.

onceIloved · 17/02/2015 11:50

"Haven't looked too closely at the details but I'd guess they're likely to need some work and / or not in a great area."

The devil's always in the detail isn't it :)
Own your own home but you hate it and it's an an area where you don't know anyone or actually want to live.

morethanpotatoprints · 17/02/2015 15:47

Shadow

I linked to some above, near our area, but I know they aren't very nice.
However, for a little bit more you could get a nice area.
I'm not sure where you are, we are Greater Manchester on the East Lancs side.

Arsenic · 17/02/2015 17:38

I just wasted half an hour having a rummage. It seems Southwark, Enfield, Kingston, Harrow, Croydon, Wandsworth and Croydon (maybe others but I ran out of steam) all offer similar incentives. Payments are made directly to the conveyancing solicitor at or immediately after completion (at least for the schemes making minutae available).

Not all schemes were as generous as that in the OP, although Wandsworth's max grant is £60k (presumably for longer standing tenants of 4 bed accomodation??).

Probably only useful to tenants wanting to leave London or buy shared ownership, of course. Or to empty nesters who are still young enough to secure a mortgage?

The more I think about it, the more pragmatically sensible the idea seems. The opportunity cost of a lifelong secure tenant is huge to the councils, esp when they are having to fund expensive B&B/hostel places for homeless families.

Arsenic · 17/02/2015 17:39

accommodation^

2MuchLoveWillKillYou · 17/02/2015 18:46

Yes council didn't offer op £500k buecause it's not her house! It's not like she's selling her own asset! 50 k it is a good deposit even for nw London - like 10%! Of a decent value. I just don't get it how people can moan itsnt enough.. for a rental property. Wish my private landlord would give me 50k to move out.. if you don't want to do it then no one is forcing you but don't moan for God sake

YANAgurl1973 · 17/02/2015 19:56

I'm in a ha flat and we've been offered £1000 :(

Viviennemary · 17/02/2015 20:30

There doesn't seem to be much point in you accepting that amount if it would be nowhere near enough to make a house of your own in London affordable. But I suppose if you were thinking of relocating then it would be worth it but otherwise it wouldn't be.

Thisismyfirsttime · 17/02/2015 20:59

I know several people who have had and accepted such offers, they are often aimed at older couples who are in larger homes than they need as their children have grown up and flown the nest and would be considering leaving London anyway.
It can be difficult for people to understand if they don't live in London but councils have to house people and are paying for families to be housed privately which in the long term costs them far far more in these parts than 50k! I know lots of council tenants who are housed privately and I agree with this scheme.

Iflyaway · 17/02/2015 21:08

I have life-long security in my house. HA.

They can take me out in a box. Grin

expatinscotland · 17/02/2015 21:15

No chance I'd give up a council house in London for that.

keepitsimple0 · 17/02/2015 23:22

sweet Jesus. no wonder the government has no money.

no kidding. Keep in mind that this is a good deal for the council, as they could sell/let the house for a lot more.

ClaudiusMaximus · 18/02/2015 10:58

This reply has been deleted

Message withdrawn at poster's request.

expatinscotland · 18/02/2015 11:13

The government has all kinds of money for pet projects like HS2, computer programmes that don't work and cost hi deeds of millions, billions to bail out banks and continue to pay multimillion bonuses.

Original poster
Edenviolet · 18/02/2015 11:18

I can see why the council want to try and reclaim some of their housing stock and that it is from a certain pot of money but it seems very sad that the same council refused to continue funding homestart (76k a year), something which really helped families in the area for what they are prepared to pay to get a couple of council properties back.

If we did want to relocate it would be ideal, but as it is we could not accept as it would not help our situation.

I have been surprised at house prices in other areas of the country though! What buys a 3 bed round here can get a 7 bed property in some places !!

OP posts:
JillyR2015 · 18/02/2015 11:25

You can move and buy a whole house without any mortgage for life for that sum! Makes you wonder why some of us bother working.

Eltonjohnsflorist · 18/02/2015 11:31

Bit odd, the can't buy a new council house for that but they can build one. I work in the industry and have never heard of this. Large parts of NW London are v underdeveloped so lots of land opportunities.

As to whether I'd do it it depends where you live. Harlesden/ stonebridge park/ dodge part of Wembly and I'd bite their hand off and get a mortgage in herts/ beds/ middx where £55k is a good deposit providing you can get a mortgage. If you live in hampstead, maybe not so much Wink