To think being able to use housing benefits as a mortgage is unfair?

[blahloney]

I’m actually feeling quite annoyed. I currently work full time, don’t receive benefits but cannot afford to buy a house despite my rent being more than a mortgage. How is this fair?

No after £6000 you lose a certain amount it stops totally at £16,000

And this will just lead to more unscrupulous landlords and a lack of social housing.

I'm in private rented , no benefits, can't afford to buy .

Surely you have to be in a HA or council owned property first to be eligible for this? They are hard to get to start with!
It's not private tenants renting that will qualify for this of course , that house or flat does belong to an actual person or company. They pay a lot more rent too and probably the ones with the biggest gripe. I don't blame them.
How many homes would potentially come under this scheme for people to consider?
Plus I've never known a conservative government give ( potentially ) so money away like this before too. The magic money trees are growing at number 10!!

Plus I've never known a conservative government give ( potentially ) so money away like this before too. The magic money trees are growing at number 10!!

I know it's nuts.

Or, they are trying to inflate away the debts they've accrued.

It’s not going to work accept for maybe a few people in gritty council flats on Stoke, and only turn if they bring in a government-backed lender. So I think you can release your pearls.

Of course housing benefit should cover the mortgages. What do you want families that fall on hard times to do, default and end up in a council house that doesnt exist?

Really hope so. Very unfair otherwise.

I'm actually gobsmacked at this sentiment. You'd rather line the pockets of landlords and subject people to their whims rather than allow people a stable roof over their heads?

After I suffered DV at the hands of my dc's father, I stayed in the family home while I sorted the divorce and court, etc. I was claiming benefits until I could work full time and take the mortgage on myself. To have to sell my children's home and move into a rental, get rid of family pets, possibly change schools, etc etc, after such a traumatic life event is a horrendous thought.

I'm grateful for the assistance I received during such a terrible time in our lives. I'm also grateful you aren't in charge of any policies that would have adequate our lives exponentially worse.

Plus I've never known a conservative government give ( potentially ) so money away like this before too

RTB was started in the 80s by Thatcher. You’ve definitely known it, it’s in your user name!

RTB buyers have a built in deposit, and surely that’s who they mean, but finding mortgage lenders prepared to underwrite will still be a hurdle.

Ultimately the underwriters will say NO.
Risk of default too high.
They won't be able to have a deposit higher than 16k as otherwise wouldn't be entitled to benefits.
Desperate popular politics for a man who knows his career is on the line

They haven't needed too though. In an era of increasing house prices, lenders have granted a high amount of forbearance as it made commercial sense.

The elephant in the room now is that are lenders and the government predicting a downturn in house prices, which would mean that it wouldn't make commercial sense for those mortgage holders with 10% or less equity in an era of decreasing house prices?

There is another factor as well. The intention is to enable HA tenants to buy their homes at a discount. But the government doesn't own the HA property, so how will that work- unless they will be reimbursing the HA for the discount they are forcing them to give. In which case HA tenants will get what it in effect a lump sum deposit from the state which private tenants won't get. Why not just build more Council housing?
Advisors to Cameron and May have already said it won't work as they have looked at it previously. Still good headline for BoJo.

The rules used to allow this, then they changed. All this means is that someone who already owns their home (with a mortagage) can claim the normal amount of housing element and not have their house repossessed rather than being made homeless and having to add to the pile of people already seeeking affordable private rent.
Noone will be able to buy on the basis of the housing allowance since you can’t accrue savings.
I think it will help a very small proportion of people who have fallen on hard times.
It’s clearly absolutely not a solution to the vast majority of people in the South East under 40 who private rent and can’t get on the housing ladder.

Yep

It's ramping up to general election, expect benefits and such to become very much talked about as a way to divide everyone.

"Ooo look at those millions of people that have never worked and just had 10 kids to get big houses and loads of YOUR cash"

And people fall for it..
You'll see benefit bashing all over MN.

But remember. Whilst lots of people were celebrating the Jubilee... Record levels of sanctions were reported, forcing many many thousands I to abject poverty. And recently, Food bank usage is running at 3million visitors and are running out of food. 3million families unable to buy food should be the shame of the nation.

Ultimately the underwriters will say NO.

They might not be allowed to.

So, SO many reasons selling off affordable homes is a terrible idea.

Yes they will be able to save more than £16,000 any money in a help to buy ice so that can only be used for the purpose of purchasing a house will be ring fenced and not included in benefit entitlement.

Current rules for UC for mortgages is a 9 month wait then you can apply for help with mortgage interest only and its a loan that has to be repaid. If thus dies ho ahead it will mean a major change in UC regulations.

Some people had mortgages before they ended up claiming UC so will they now get some help? This has not been thought through

THIS! It speaks volumes about the governments predictions of a massive recession for enough time that people will lose their homes (which usually when the British public in their wisdom flipping finally wise up and oust the Tories).

You used to get the interest on your mortgage paid after you had been unemployed for 3 months. The Tories removed this and made it into a loan instead. They have also introduced a rule that you have to take any job after 3 months which will leave a lot of middle class people unable to pay their mortgages as they won't be earning enough. This 'new' scheme will ensure that they don't lose their homes and will continue to vote for these idiots.

@Wartywart yes I believe that is the plan so no people will not be throwing in the towel giving up and moving over to benefits in order to secure whatever measly amount they be allocated.

but yes if you do find yourself it hard times you won’t have the added trauma of being repossessed and renting the same property back off a landlord for twice the price honestly can’t see what people‘s problem with it is I really can’t.

So you'd remove benefits from every single person who has a home in positive equity? Wow.

The reasons for the difference are that you can actually spend cash, you can't spend equity and you also don't pay housing benefit to that person. So the cost to the taxpayer is often substantially less.

I'm also interested as to where you'd be housing all of these people now you've forced them to sell?

What won't he do for a soundbite! Isn't this incredibly tone-deaf, when so many are struggling to put food on the table, bath their kids and fill up the car? And at a time when interest rates are only going up, to potentially land those already up against it and on housing benefit in even greater trouble? It's totally bonkers!

I'm all for helping folk get on the housing ladder (my kids can't see themselves ever owning their own homes), but this isn't the way. Smacks of desperation.

Two separate issues,
I don't have a huge issue with homeowners claiming housing benefit. Could happen to anyone be paid off, take ill, horrible that people end up loosing their home too. Back in the day people on unemployment benefit could claim for the interest on their mortgage. Basically enough to keep the bank happy while they look for another job.

Selling off Housing Association property is nuts enough people are struggling to get decent low cost accommodation. Councils stopped building because the second people moved in they bought. When will they learn?