Right to buy

[Forestgate]

What a ridiculous foolhardy scheme

Just what we don't need !

YABU - Great idea

YANBU - terrible idea.

Part of the rent structure for SH is toward the RTB discounts. That's why certain HA properties have the RTA, because some of their rent goes into the discount pot.
Crudely the rent is expenditure/upkeep/maintenance/area and tenants facilities/housing services.
social housing is just capped at 8% profit like most public services.
it pays for itself no one pays towards it unless they are a tenant.
They just aren't allowed to make big profits and don't need to pay bank interest rates.

Anything that reduces social housing stock is only a bad thing in my view. They never replace these homes, so in the long run it means less social houses for those families in need of a house. Where I live in Midlands for every private rental there is are 7 or 8 people who want to rent it precisely because there are not enough social houses for rent.

Going to have to be some building programme to cope with the c.700,000 per year birth rate plus net immigration.

That aside, allowing benefit payments to be used against mortgages is partially a good idea for some tenants as they can see they're getting something for their efforts.

There are potentially a lot of problems.

Obviously, if you're reliant on benefits you probably don't have much wriggle room financially and if there's an interest rate rise, fairly good odds you're stuffed and the social housing system really isn't and can't be set up to accommodate a higher number of evictions.

I'm also thinking that this is going to be absolutely slaughtered fraud wise especially in areas like London where house prices move so quickly. Use other peoples money to buy an asset you can later sell for a potentially whacking profit? No incentive for shenanigans there.

Also are you going to ensure low income/no benefit families are given the same opportunity to buy? I'd be well hacked off if I'm stuck renting whilst Billy and Betty Benefit down the road are happily buying their own house.

It's been a while so I'm not 100% on the current regulations but is it still possible to get Guaranteed pension credit then sell your house without falling foul of the capital rules?

100000s on the housing list, councils can't afford to build many new homes, letting people buy their homes is a terrible idea unless they are selling at a proper market rate so the council can buy more homes to increase social housing.

I think this would just negatively affect the amount of rental properties available. Whatever we think about landlords why would anyone make an investment knowing that it could be taken from them without consent and sold at a discount? The result would be current landlords would get their tenants out and sell before the legislation came in. Potential landlords would invest differently.

I'd be for it if ALL money made was put into building new social
Housing for younger generations

It did for a lot of people. It followed the high interest rates when a lot of people lost the equity in their homes, as I did. However I was well able to pay the cost of a 100% mortgage on the house I wanted to move to. I brought on a 100% mortgage and so did the bloke who purchased my flat. The decision to lend was based on income etc, in other words the ability to pay.

The mortgage companies were gambling on property values going up again, which they did. So they were reasonably assured that if they had to repossess they would get the value of their loan back.

@Kerrangutan overall I agree. But of course the government subsidises lots of things for the good of society. They pay people for not working (for whatever reasons), and for access to lots of free services that would of course not be expected of private providers/ employers etc (beyond certain limits). So I guess it depends on whether you agree that giving people the ability to buy their own homes is a good thing (and the best use of funds). I think not for the reasons I've already mentioned, which is why I think it's a bad idea (not least due to the consequences). But if you accept it as a valid benefit to society that trumps the negative consequences then I don't see an issue with goverment footing the bill.

None of the political parties are offering any solutions and that's worrying.
As @Kerrangutan said the fix is a multi level approach but it's a hot potato because the only solutions involve spending and investment.
If things continue like this we'll end up with US style homeless villages of worse South African style communist rioting.
Not something I want my DC or GC to struggle through.
Grasping the nettle on housing would get my vote.

Absolutely

More drivel from a washed up PM.

Wish Johnson would just fuck off. Sorry to be unconstructive but I hate him.

This policy will make things worse not better according to Shelter.

@carefullycourageous I think most people feel the same as you. Take your overpriced wallpaper and piss off 😂