To wonder why Housing Associations are selling stock to the private market?

[TwinkleFarts]

I live in a rural area where affordable housing and housing association properties are like hens teeth. I'm in a HA myself (Aster).

There have been an extraordinary amount of their houses on the private market - it seems like every time a tenant of theirs dies or goes into a care home, they sell the property - cash buyers seem to be snapping them up very quickly.

AIBU to think this seems a bit off considering the housing crisis?

Isn't some sale how they raise money to run and build more?

The problem is, in villages they are not building any more.

I've worked for a couple of HA's. A proportion of all HA developments are allocated to sell on the open market in order to subsidise the non profit making activities.

Some older properties are sold because they cannot recoup the cost of bringing them up to standard for subsidised rentals. Property developers will buy these properties, often at auction, as they are prepared to take the risk of doing them up and hopefully making a profit on them. The HA's can then use the money from the sale to renovate existing properties that have less problems, or build newer properties.

Also sometimes the demand for housing in one area (or for housing of a particular type/size) goes up or down. The HA may decide to sell properties in lower demand areas or places they don't have a lot of housing (and so are more costly to service for repairs & maintenance). Again the sales can finance building in the more popular areas. You can especially see this in London.

It doesn't always mean a net reduction in the amount of HA housing available it's just using limited funds more effectively.

As a resident you should be able to join the committee, look through the finances and have a say on these things. Usually houses are sold off so that more can be built.

OP I have always wondered this. I am HA and next door my HA own 5 flats in a house conversion, everyone that has moved out over the last 10 years has not had a new tenant but been sold off and although they are building new homes the majority are now shared ownership.. they never actually rebuild the amount they sell off and when they do the majority are for private sale

Samw with the council. Bottom of my road there was a small estate, about 20 council flats, they knocked these down and rebuilt 8 or so 3/4 bedroom houses.. only 3 were for council tenants, the rest private sale..

I can see an argument for "too expensive to get up to scratch", but from personal experience I have been allocated and seen others allocated homes covered in mould, hideous outdated or nicotine stained decor (you get around 70 quid from the HA towards painting the place yourself)...additionally, a lot of the stock being sold has recently updated heaters etc.

A lot of the properties going on the private market near me are desperately needed 3 beds with decent gardens. So many families are overcrowded or stuck in extortionate probate rentals.... Villages where most of the residents are wealthy home owners and there is very little available for everyone else.

Additionally, HA tenants are excluded from buying their homes under "right to aquire" in these areas BECAUSE the lack of housing is so severe. And yet the HA are selling these homes off with no means or intention to build more in these villages.

*private rentals not probate!

So it seems even more "wrong" that HA tenants cannot buy the houses at a discounted rate they may be able to afford because of the lack of stock in villages.........yet the houses are being sold off on the private market (usually to cash buyers).

Thank you I will email them this week.

It seems that villages in the south west are doomed to end up as near 100% wealthy home owners or private renters.

I also rent via Aster housing have noticed they sell of older houses when they need lots of work done . Why can’t they maintain the houses properly and then keep them on their rental property books . One for example in my mums village needed totally updating but instead of them going this they sold it . The house I lived in previously had a damp issue but again instead of sorting it out they again sold the house . Isn’t this wrong when the waiting list is awful and people are desperate to had housed .

Sorry desperate to be housed

Often sell as prob to expensive to bring up to scratch mot everyone allows ha in to do work or turn down new kitchens or may if done work themselves which is not up to scratch
Most if ones sold by us seem to be older houses that need work and maybe epc ratings are low etc and the money they can get can be put towards other houses , and newer stock is often cheaper for people to live in as better insulated etc etc
HA just have to provide homes where they are is maybe not so important as people having a roof over there head

Doesn't that ultimately mean the villages die because there is no community if only the very wealthy can live there?

There discussion on housing was spurred about 10 years ago when we had to vote on local councils owning their own housing or selling it. No one knew that the right answer was to vote for councils to keep their properties. In the confusion a lot was lost, so now, the impetus and ability to keep properties up to decent standards is denigrated.

The new Renting Homes Act that was brought in has had a big effect on local authorities and housing associations. It is cheaper to sell off stock than spent millions upgrading their current stock to meet the new EPC criteria.

Our HA house is badly in need of some TLC, kitchen is rotten and cupboards coming off, bathroom isn’t much better, rough casting falling off, but we are just told no money for improvements. The HA merged with another a few years ago, we were all given a vote as to whether to let it happen or not, promised the earth, more money for improvements but nothing had materialised apart from building lots of lovely new houses that current tenants won’t get a look in which is fine as they are needed. Fence has blown down, told it’s our responsibility to fix. My area stopped right to buy which is fine if they keep their existing properties up to date instead of letting them rot, I love my home it’s really let down by lack of care from the HA