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AIBU?

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Original poster

To buy my housing association home now and not wait for right to buy

214 replies

Fulani1989 · 17/06/2017 09:20

I have lived in a housing association home for 6 years. Refurbished houses sell for roughly 130,000. Average semi detached houses in the area sell for over £200,000 as it's not a bad area but my house is on a medium sized (100 houses) council estate which brings down the value.

There's absolutely no way I want to live in this area any longer than I have to. It's okay for now as it's 12 miles from my job.

I have the right to acquire. I requested to know how much the housing association would be willing to sell me the house for. They said it was worth £90,000 and with discount of £9,000 that's £81,000. The reality is that my house is a worth around 110,000-130,000 but HA's tend to under value.

My house is a Council house it was just transferred to a HA 9 years ago. The right to buy is supposed to be extended to HA properties but I've been waiting over a year now and there doesn't seem to be ANY development. I'm starting to believe it's never going to happen.

With the RTB instead I would get a 36% discount and would only pay £57,600! Well, well worth waiting for. I'd be willing to wait a few years to get the discount as the discount gets bigger with each year I'm a tenant.

BUT I don't know if it will ever even happen and I don't want to live in this area indefinitely.

My parents and friends said wait for the Right to buy. But I'm sick of waiting.

Buying my housing association home is my only chance of buying a house. It's the only mortgage any lender is willing to give me because of a less than stellar credit rating from a few years of unemployment.

AIBU to just buy my house now? And just forget the chance of a much better discount?

OP posts:
Original poster
Fulani1989 · 17/06/2017 12:44

Owning a business is less secure. If you knew the profession I was in you'd have no worry about me losing my income. It's incredibly secure and the Council I work for have a no redundancy policy.

Even if I was made redundant I'm highly employable.

OP posts:
Original poster
Fulani1989 · 17/06/2017 12:45

House prices will go up but so will the value of my home.

thanks for the advice that the RTB probably won't be happening. I will make plans to use the right to acquire.

OP posts:
AndNowItIsSeven · 17/06/2017 12:45

Op the right to buy on HA properties means the tenant lived in the property at the time it was sold from the council.
If you swap you will NOT have RTb.

Original poster
Fulani1989 · 17/06/2017 12:46

If the RTB comes in during that time that's a bonus.

OP posts:
Original poster
Fulani1989 · 17/06/2017 12:48

Yes I know I don't have right to buy. I have th I right to AQUIRE

OP posts:
Original poster
Fulani1989 · 17/06/2017 12:48

If I move to a Council house rather than a housing association home I have the right to BUY.

OP posts:
OhhBetty · 17/06/2017 12:49

So you want to buy social housing which people are in great need of in order to make a profit? It isn't your fault that the system is so shit though. But morally questionable.
My 2 year old and I can't get a council house as there aren't any. We're weeks away from being homeless. Have applied for loads of private rents but landlords don't like tax credits or single mums. I work and my wage combined with TC is 14k a year. I can't work more as I can't afford childcare costs. I am studying though and things will be much better once he's at school.
No one on 33k needs councl housing. It amazes me that you've forgotten so quickly what a struggle it is being poor.

Original poster
Fulani1989 · 17/06/2017 12:49

The rule about 'preserved right to buy' is only relevant for HA properties. Not Council houses.

Almost Council houses haveth RTB.

OP posts:
NoSquirrels · 17/06/2017 12:50

Regardless of the morality and the home that is RTB in context of social housing, I still don't quite understand your position, OP.

You don't want to live there another 5 years, but will do so in order to buy & have a secure home for your DS.

You can't get a different mortgage.

What happens in 5 years? Are you presuming at that point you'll be able to use the money gained in equity and a new improved credit rating to buy on the open market elsewhere?

If so, just save your £9K + a year (easy!) And wait. If RTB comes in within 6 years, buy then. If not, your credit rating will be repaired and you'll have a deposit. You'll only have "lost" £9K which is nothing, apparently.

Basically this thread is getting up people's noses because you're in a massively fortunate position but seem to be conflicted because you "could" get more. Buy now and have done with it or don't, but don't try to game the system when as you say yourself you've been on the bones of your arse and are now very well off comparatively. You have loads more options than most.

Original poster
Fulani1989 · 17/06/2017 12:51

There are huge shortages of social housing in some areas but not others.

There's no such shortage in my local area. It isn't desireable so it only takes a few weeks to get a house.

I was willing to accept a house in a less nice area and that's how I got one so quickly

OP posts:
pringlecat · 17/06/2017 12:52

You've said other houses in the area sell for £200k, but you don't seem keen on the area anyway. If you were to move to another area, would prices be any more affordable, or would they be in excess of £200k?

Original poster
Fulani1989 · 17/06/2017 12:52

It's not a £9000 discount as they under value properties. So I'd be getting it cheaper.

I'd not bother buying for a £9000 discount.

But as it's undervalued it's worth it.

OP posts:
wisteriainbloom · 17/06/2017 12:53

The government hasn't yet said what this policy will cost the taxpayer, but it has promised to refund the discount to the housing association involved. The National Housing Federation (NHF) which represents all the UK's housing associations, has calculated that in total Right to Buy for housing association tenants might cost £11.2bn, if all those tenants who could afford to buy did so. The Institute for Fiscal Studies (IFS) has said it would potentially cost "billions of pounds" over the next parliament, and it "would worsen the UK's underlying public finance position". The IFS said it would also represent a "substantial giveaway" to housing association tenants

I just don't think that the country can afford this.

GabsAlot · 17/06/2017 12:53

how do u know how many people are on the waiting list?

if its so easy maybe we should all apply!

Original poster
Fulani1989 · 17/06/2017 12:53

200k gets you a nice semi detached place.

With the equity from the sale of my house and improved credit rating I'd be able to afford a home of £150,000 at least.

My pay rises each year. In 5 years my salary will be 37k.

OP posts:
BabychamSocialist · 17/06/2017 12:54

YABU. You should never take a LHA property into private ownership. It's disgraceful when so many people need homes. Also - you're earning £33k - rent somewhere else!!

AndNowItIsSeven · 17/06/2017 12:54

Op no need to be rude I am one of few people not having a go at you on this thread.Yes you would have RTB in a council property , your post was worded like you intended to swap with a tenant who had protected RTB.

Original poster
Fulani1989 · 17/06/2017 12:55

It's so easy to get a house where I live you can get some without even waiting! They're hard to let and remain empty so there a system to express interest.

The council publish the waiting lists. They're roughly the number of houses there are. There is not a shortage of social housing here

OP posts:
HoldMeCloserTonyDanza · 17/06/2017 12:57

If I had the choice, I wouldn't keep my DC spending their childhood in a bad area if I could afford to pay a private rent and get him out into a nicer environment, better school etc. I think the sooner you do that for him the better.

But if you are determined to spend 5 more years of his childhood in a bad neighbourhood for the sake of a cheaper house, then use right to acquire ASAP. Do not hold out for RTB. It might happen, but it's not worth gambling it all for a slightly larger discount.

Bluntly, this situation isn't sustainable. The housing crisis will probably force either the local or national government's hand, and schemes like this (and I use the word "scheme" deliberately there) might well have the rug pulled from under them with very little warning.

It's not just a Corbyn govt that will threaten it by ending right-to-buy/right-to-acquire, either. A Tory govt may start forcing you out of the home as you earn so much, they don't care about social cohesion or peoples' desire to put down roots - they don't have many houses and lots of people need 'em more than you do.

Your position is more precarious than you seem to think.

SquidgeyMidgey · 17/06/2017 12:57

I have never ever felt any guilt about exercising my right to aquire. I think the scheme is a great ideal and improves areas of social housing. It also means people can afford to buy their own home who otherwise would struggle to do so.

You've said in another post it improves areas of social housing because when the majority of housing comes under private ownership the area takes off. And you have The Right to buy your house. Thatcher would be so proud of you. You're more of a Tory than I will ever be.

OhhBetty · 17/06/2017 12:58

Fulani1989 are you insinuating those who can't get a council house won't accept properties in bad areas? As that is just ignorant. If people need homes most will accept anything. The area I'm most likely to get one in is not a nice one. High crime rates and drug use etc. Still no chance at all. But we just need a roof over our heads.

user1495832265 · 17/06/2017 13:00

Seems to me that the more OP posts, the more they appear to be a GF.

Original poster
Fulani1989 · 17/06/2017 13:01

It's not a nice area but it's not rough either. He goes to an outstanding rated school at the moment.

I would rather he had a stable and secure tenancy than private rented in a better area.

OP posts:
Original poster
Fulani1989 · 17/06/2017 13:02

If I had to private rent I'd struggle to save for a mortgage. So this is my only option.

OP posts:
DontTouchTheMoustache · 17/06/2017 13:04

If it's such a shit area then you won't be able to sell your house and certainly not for over 100k