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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

so the people with low rent that is subed, will now be able to buy with a sub total madness

238 replies

medona · 14/04/2015 08:15

The people in the country with rent that us subbed will be promised a discount of up to 100000 to buy this property. It's madness all over again.

This scheme is estimated by some to cost 29 billion.

There really is no point working in this country, the middle just get squeezed more by the day. Best off either never working or being rich.

OP posts:
merrymouse · 14/04/2015 11:40

The £200-£300 a week of potential income the council was surrendering is a subsidy.

Possibly, although you could argue that by selling off council houses the council has artificially increased the mv of other rental properties by reducing supply. No real increase in value has been created.

Equally, the value of those other rental properties is increased if there are people in the city who can do a variety of jobs and the streets aren't full if homeless people and beggars.

Toofat2BtheFly · 14/04/2015 11:41

Thanks theo

I'm not sure I agree with your thought pattern but thank you for taking to the time to explain .

So if I go to sainsburys and buy a tin of beans on special offer for 40p instead of the usual price of 60p , sainsburys are subbing my tea ? I only paid the price they asked me too Confused

Arsenic · 14/04/2015 11:41

I also don't believe that 100% of proceeds from sales goes back into replacing the housing stock locally, if it did we wouldn't have such a social housing shortage.

No, the capital receipts were not reinvested in housing for decades. Hence the withering of stock.

But they are now.

merrymouse · 14/04/2015 11:42

I also don't believe that 100% of proceeds from sales goes back into replacing the housing stock locally, if it did we wouldn't have such a social housing shortage.

Agree. I suspect there is quite a lot of room for manoeuvre.

LargeGlassofWhite · 14/04/2015 11:42

I think it's great for those who can benefit from it.

But I agree that it seems the middle are forgotten about.

DH and I both work, always have. We have a joint income of around £55k per annum. We pay £750pcm for our rented house.

I also own a house which we rent out, I bought it when I was 24 in 2007, just before the property prices crashed. That house is now in negative equity.
That house isn't big enough for our 4 kids but unable to raise the money to fund a deposit for a new mortgage on a bigger house, so we decided to rent a bigger house.
It's not ideal but it suits us for the time being.
I'm sure our situation isn't unique, there must be plenty of people in a similar situation...working, able to make rent/mortgage payments but not able to raise the deposit for a mortgage.
I know there are help to buy schemes etc but you still need 5% deposit, for a 3 bed semi we'd need about 10k. When you have kids it's just not that easy to save 10k.

I'm not expecting hand outs from the government but it would be nice if they would remember people like us in their plans to help people.

merrymouse · 14/04/2015 11:43

Also, even if they are actually replacing stock, like for like isn't enough. We need more.

Arsenic · 14/04/2015 11:45

If anyone suggested migrants shouldn't behave in a way that was economically rational, there would be uproar.

Superexcited · 14/04/2015 11:47

largeglass but you own a house with a mortgage, it's unfortunate that it is in negative equity and not big enough for your family but I'm not sure what any govt can do about that. What do you think they could do to help people in your situation?

looknow · 14/04/2015 11:48

Only on Mumsnet would an income of 55k be quoted as being in the middle.

What help exactly do you expect ina salary like that? Ffs..

looknow · 14/04/2015 11:54

Regarding subsidy for council housing being the council not charging market rent.
Market rents are inflated, charging less while covering your overheads is not subsidising, it is not fleecing those in social housing.

I can see why people call this a subsidy, but most of us would think of subsidy as bring the la or ha actually diverting funds to cover the cost of maintaining stock

Plenty if ha houses are rented at the same rent as other local houses, my area for instance.

Original poster
medona · 14/04/2015 11:55

I think it's great for those who can benefit from it.

Yes the lottery is great for people that win from it, so is gambling and pyramid schemes.

OP posts:
TheSultanofPing · 14/04/2015 12:00

Absolute madness!

Right to buy is the reason we have such a housing crisis now...and they want to extend it. It beggars belief.

LargeGlassofWhite · 14/04/2015 12:06

Only on Mumsnet would an income of 55k be quoted as being in the middle

Our joint income is around 55k..I believe average income is around 26k so yes we are in the middle.

As I said, I don't expect any help. Just pointing out that there are many people like us who are stuck in a position where we can't buy.

We're fortunate that I do own a house, even though it is in negative equity, it won't be forever.

But there are many many people who are stuck in rented property as it is so hard to save a deposit if you rent privately, even if you earn a decent wage.

I don't know what the answer is, 100% mortgages got a lot of people in to trouble last time they were offered. But maybe they should be available to some people.
Or the deposit is loaned to you through a government grant. Again, maybe just for certain people who can prove that they can afford the payments but can't afford to save a deposit.

sparkysparkysparky · 14/04/2015 12:06

Look now, I think the poster said a JOINT income of 55k. So 25k each there or thereabouts. I think that counts as middle income earners.

happybubblebrain · 14/04/2015 12:15

Medona - I don't think it is the middle that are forgotten about in this situation, its those that rent privately that are forgotten about. They should be outraged and vote Labour to keep the Tories out.

The middle are just fine, that's why they are the middle. If anyone in the middle is really struggling, they're not really the middle are they? they just still like to think they are.

hesterton · 14/04/2015 12:20

This reply has been deleted

Message withdrawn at poster's request.

TedAndLola · 14/04/2015 12:22

happybubblebrain Great post.

Original poster
medona · 14/04/2015 12:24

I disagree I think the middle are really really struggling. Not many in the south east on middle incomes can save enough after rent to get the deposit needed together and in places like Oxford the avergae house price is 13x average earnings.

Thankfully in history its the middle class that has often been responsible for change, that change has to happen as you need to be extraordinary to get the lifestyle a normal person had last generation. If anything ever goes wrong your fucked these days, and relationships fail all the time.

OP posts:
CrystalCove · 14/04/2015 12:33

Because we've always worked we've always had to private rent and have never had access to social housing

Oh yes because youre not allowed to put your name on a council house waiting list if you work. Hmm

noddyholder · 14/04/2015 12:34

The 'middle' are 'struggling' in ways those at the bottom would like to be!

letseatgrandma · 14/04/2015 12:34

As I said on the 'other' post-I strongly suspect that those who buy their housing association homes under such a scheme would find themselves, as 'homeowners' suddenly ineligible for any sort of government help-eg universal credit if things went wrong for them. If the government link child benefit to being able to qualify for universal credit-as GO has refused to rule out-that could have quite an impact on some.

SaucyJack · 14/04/2015 12:36

We're eligible to buy our council flat and we did look into it, but after paying out to have heating put in, the damp sorted and walls re-plastered plus new windows, kitchen and bathroom, it wouldn't actually have been much of a bargain after all.

It really isn't the fantastic gift some of you seem to think it is.

littlemonkeyface · 14/04/2015 12:40

So if I go to sainsburys and buy a tin of beans on special offer for 40p instead of the usual price of 60p , sainsburys are subbing my tea ? I only paid the price they asked me too confused

Toofat Yes, it is a subsidy because only a small number of people are being offered this discount. Anyone can go to Sainsburys and take advantage of their offer if they wish.

Regarding subsidy for council housing being the council not charging market rent. Market rents are inflated, charging less while covering your overheads is not subsidising, it is not fleecing those in social housing.

looknow Market rates are not 'inflated', but represent market conditions. Offering a property to someone at a better rate than market conditions is subsidising.

YANAgurl1973 · 14/04/2015 12:41

You also do realise not everyone in ha housing would be able to afford to buy their property as many are on low income. I can't see it having too much of an affect :/

ComtesseDeSpair · 14/04/2015 12:44

I'm a bit confused, since HA tenants already have the right to buy their homes after a certain period of tenancy, with a discount. What's new in the Tory announcement?

No contribution to the scrounges versus strivers debate.

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