Right to buy. What about everyone else?

[BrownieBanana]

AIBU to think that it's all well and good to bring in new policy that allows better saving for RTB for council tenants, but that it doesn't help people who REALLY need help? If you're in a council property it is still vastly cheaper than private rent (over 50/60% where I live). What about the millions of young people living with their parents into their early and mid 30s who can't afford rent (this is me), can't get a mortgage as a single person even on an OK salary. Am I missing the mark here? I'm not saying everyone in a council property has it easy, if course not, however I don't think it's the right way to deal with the housing crisis at all....

As I understand it, this is just part of a package. By Autumn they say they are going to make 95% mortgages easier for first time buyers too.
I don’t actually trust any of it. Very convenient timing…

And those new houses will costs approx 200k to build after selling one for 130k

For 200k, you’ll build a 200-250m2 house Average size of 3 bedroom home in the U.K. is 88m2. To build that is approximately 85-95k. Even with land costs, it isn’t anywhere near 200k.

I don’t understand RTB as it takes away much needed social housing stock?

It won’t happen. More holes in it than Swiss cheese.

So it goes like this: private renters have enough to pay a fortune in rent. They wait to be evicted so they can have a chance at a council home. They might live in poor conditions for some time but ultimately will get on their council home. In the meantime, the landlords went through crap, stress, extra costs so becomes even stricter in selecting their new tenants, that is if they don't decide they have enough and sell. This makes it even harder for families to find private rentals.

The right to buy is a good concept when it allows those working hard on low income to have a chance to become home owners too. Those who will stay in the house for a long time or even ever.

The problem is that it inevitably is then used by those who play the system like someone I know well. She became a single mum and after a couple of years on the Council list, got a newly built very nice 3 bed semi with garden. She worked the standard 16h that got her maximum benefits. After a couple of years, she started a relationship with her boss. He earned well and owned his own 3 bedroom. They could have moved in his house but no, he moved in her council home, married and as soon as allowed, bought it at a significant discount whilst letting his place. As soon as they could, they sold the council home, making a hefty profit abd bought a nice detached 4 bedroom.

This is just so wrong, but that's what happens when the government ignores that there will always be people to play the system because the rules allow it.

The government do not care about private renters. It spent a lot of money during the pandemic propping up house prices and rents. Vote with your feet at the ballot box.

A pp may have said it in a clumsy way but I kind of get what they’re saying. It is sad that people commit suicide due to debt (and I say this as someone who has had debts). I still had a roof over my head and food to eat and family and friends I cared about. So to me, those were the important things and no way would I have considered suicide due to “just” debts. Tbh many of them are written off after 6 years anyway. In truth that’s how I got out of most of mine! So that pp is somewhat right in the respect that you sometimes just have to ride it out.

I’m not saying it isn’t scary, stressful and can lead to very severe depression. Not being able to put food on the table or keep warm is of course going to have a really bad impact on someone. But if you can live, then you can live to fight another day. Things can get better.

In regards to the actual topic, I don’t think they should be selling off even more social housing, and I am in HA accommodation. However I think it was a statement that was made without considering all the issues and it will probably not happen.

I read the same figures in the week, 200k, can’t remember where.

Right to buy is why there is so little council housing stock available. The discount given was far too generous with far too little time elapsing between commencement of rental to acquiring the right to buy. Once in private hands the value (and therefore to cost to let) rockets . Its the start of a very expensive spiral and the fastest way to creating class division

Doesn't matter what the government says. Its lenders that will have the last say and if they are unwilling to take on low-income buyers then it wont happen. and you would just be heading for another sub-prime fiasco like in 2008 if they did.
It's not just being able to pay the mortgage which the housing benefit would cover, what about all the other associated costs of maintaining a home? What if the roof needs doing? drains, electrics, fascias, bathroom etc? how are low-income families expected to cover these costs when many are living month to month as it is with no savings.
I just can't see this as workable.
What needs to happen is a massive council house building program,

Ok so…. If they are getting housing benefit this is paid towards a housing association or private landlord. They don’t benefit.

If they have the opportunity to use that same amount of money on a mortgage the house is theirs and then they pass is to their children breaking the poverty cycle.

I actually think you will see less people in council housing and wanting to avail of RTB because they will have the opportunity to buy outwith in the open market.

As will many working families on universal credit and other benefits as these will now be able to be taken into account in mortgage calculations rather than disregarded.

When these people buy they will be out of the rental sector disincentivising middle class joe bloggs to buy up housing stock as an investment as there will be fewer renters.

I agree and I wonder how the new owners would cope with unexpected repair/maintenance bills.

Housing association properties aren't publicly-owned properties, so what Boris is proposing is forcing private, not-for-profit companies (sometimes they are charities) to sell off their housing stock at massive discount when waiting lists are enormous and the cost of house building (largely materials and wages) has risen exponentially since Brexit.

Why is it assumed that council/HA tenants will be living on benefits?

Social housing tenants do much better anyway since rents are lots cheaper than private rent.

I think they should free up homes with 3 or 4 beds occupied by oldies and move families in. Just because they rent a social housing property why should they block it when a family in greater need could use it.

Nothappyatwork Well its kind of important. Food and drink ,those boring bills, Something of a flippant somewhat deluded post! Probably best everyone doesnt follow your advice of owing near on 20k and telling the banks to "shove it up their arse!"

My kids aren’t twats

It's not the kids we are talking about...

I don't agree with the right to buy scheme all it does it remove social housing resources for local councils at a price where replacement properties can't be rebuilt to replace the lost stock.
This just exacerbates the housing crisis for those who need homes in times of need.
There is government ISA saving scheme to aid home buying this with increased investment in home building is the only way to correct the shortage of homes and reduce house prices to more affordable levels.
The government's increased taxation of private landlords has lead to many to sell properties as there is limited profit to beade that makes owing 1 or 2 BLT properties almost pointless for effort verses returns. There are now fewer private properties for rent putting strain o the rental market and increasing prices.
A consensus on the direction to the social housing and private housing supply is required by all political parties to make all sectors of housing more affordable.

This 100%

The tightening up Cameron brought in linking the rental paid to earnings, reviewing it over time was so necessary.

I knew a couple on 50-60k a year still paying 250 a month that it was originally. They cashed in massively (Prior to the review system being brought in).

RTB should be reserved for those still on the lowest incomes and not allowed for those whose income has improved who could buy on the open market.

The new right-to-buy will just mean even less social housing for those 5,000 people on the local authority housing list in your area.

I was going to say I don't understand why the govt are so keen on pushing it through but, of course, it's no less deranged than anything else they do. With less social housing, they'll just keep trying to encourage private developers to include more 'affordable' housing in their schemes - which, we all know, private developers WON'T do - and even if the govt introduce new rules in an attempt to prevent private developers from worming out of their 'affordable' quotas, it won't matter anyway because the resultant 'affordable' properties created as part of any bigger overall housing development or scheme are rarely 'affordable' for many people on median local salaries anyway.

The govt don't care about people stuck in either shite, overpriced, unaffordable privately-rented properties any more than they care about a lack of perpetually affordable social housing - 'cos if they did, they wouldn't be planning on selling it off.

This new legislation isn't going to help anyone in the long run, except, of course, those who'll sell on their bought-for-below-market-price right-to-buy properties as soon as they're able.

It's a short-sighted attempt to create the sort of working class wealth that the Tories probably think will mark a return to the glory days of Thatcher being the darling of so many working class boys & girls done good - the ones who frequently trot out that boring old cliche about having worked hard enough to get where they are today - like the rest of us non-Thatcher-voters just sat around on on our fat arses and stupidly didn't grab the option of doing our bit to pull out the gangway to social housing from under the feet of the generations coming up behind us.

Fuck me, nothing changes. Tories enticing the proles with the sweet candy of home ownership at the cost of hundreds of thousands of those just like us who'll never be able to get near a stable, affordable home.

The problem is that the Tories want to build more houses as more homeowners usually mean more votes for them but whenever they try to the people in the area where the houses are going to built threaten to vote Lib Dem to stop them being built.

What is the government supposed to do if everyone is a nimby?

I'd like to know what the housing associations have to say about it?
Do that have a say in all of this?

I just don’t understand this.

I am in a council property, husband and I both work full time. We earn too much to qualify for HB, but we don’t earn enough to be able to get a mortgage. Even with the 70% discount we are eligible we would still not be able to afford our house.

If you are in a council or HA property, and you are earning so little that you qualify for HB - I honestly don’t see what possible difference it would make that you can now put that towards a mortgage? You are likely living hand to mouth, saving barely if anything at all each month.

Around here, a 10% deposit on a basic 2bed semi is upwards of £35k - that’s going to take a LONG time to save that deposit using just HB - and then if you DO manage to save that deposit and buy, using this scheme - you are then going to be faced with all the additional costs that come with homeownership, that you never had before - but you aren’t earning anymore than you were before?!

Whats the point??

All I can see happening is thousands of people on very low incomes suddenly becoming homeowners and then finding themselves unable to keep up with the costs of homeownership and so losing that house a few years down the line - ending up exactly where they were before if not worse.

The housing market in the country is fucked that’s for sure, but this is not any kind of a solution.

If someone is not able to afford to buy a house, because prices are too high - then you need to do something about the prices, not fudge the system so ‘oh you can’t afford it? That’s ok, we’ll let you have it anyway and just stand back and watch as you desperately struggle for a few years. Then when you have nothing left we’ll come and take it back off you again, since you clearly can’t afford it after all…which we already knew when we gave it to you!’

Its like giving someone a car when they can’t afford the fuel, and in some cases, aren’t even eligible to drive!

Bonkers

So last time this was touted the government hit a block - according to this tweet from Peston: twitter.com/Peston/status/1534917117035827201

I am not sure how that can be resolved this time.

Can’t imagine they’ll love being told they HAVE to sell their own assets at a loss! They are private companies, I don’t see how the government can force them tbh.