to ask why so many people think social housing is subsidised?

[butwhythen22]

Not a TAAT but inspired by a recent mention on here - one of very, very many.

I live in a council flat, FWIW.

So, so often I hear people say that it’s subsidised (the implication that someone else is paying part of the cost on my behalf).

This is not correct. The building is owned outright by a housing corporation. It’s a non-profit organisation that charges enough in rent and service costs to cover all its overheads, which are presumably many. This rent is, however, substantially lower than what the flat would fetch on the open market.

However, nobody is paying that “shortfall” on my behalf. It’s simply that the housing corporation’s mission is to provide affordable housing, so they are not charging more than they need to in order to keep everything running well.

(I don’t even receive UC or rent subsidies or anything like that, not that there would be anything wrong with it if I did. I support myself from paid employment.)

Why don’t people get this?

I thought part of the rental crisis was because a lot of private LL agreed there wasn't any (or enough to make it worth it) financial gain and were selling, taking a rental property out of the market and thus making the properties left in greater demand?

It is subsidised - there is funding available for the initial build/acquisition and arrangements in place with private developers which wouldn’t be available to other landlords.

Even HA where the stock was acquired from the LA would have got this at a hugely lower price than the cost of the initial build.

Source: am an account who has experience in social housing

Some of the experts and number crunchers think the mortgage rate was kept artificially low (at the expense of savers) to subsidise mortgage payers and other debtors.

Who knows who subsidises who? 🤔

For most government/local government owned assets, if they are being sold or made available for rent, there’s a requirement to make the most money as possible for the tax payer, however housing they don’t, even when someone with a long term tenancy could easily afford market rent, they still are charged significantly below (with the added benefit of long term security), this is a loss to the tax payer.

in the grand scheme of things, it’s not the biggest loss, but housing is an emotional issue in the UK.

It really is. Housing should be a priority. A basic human right x

It was

WHY, would anyone give up a secure tenancy and go into the shit that is private rents? Why? It's a step down from SH. Unsecure tenancy, extortionate rents and get the rug pulled from underneath you at any time. How many threads on here about couples splitting up have someone pop up saying give tenants notice so they can move back in? No thought at all to the poor tenant. Why would anyone willingly go into that just because they've got a smite more coin coming in?

What we need is a big bright spotlight on private rentals and get the bugger under control. Take possession of all those empty properties rotting away for starters.

But no, people like to whinge about those who are actually secure. It's a classic look in your neighbours bowl to check they don't have more than you do.

Still, the rate that SH rents are climbing. People should ruffle their way back into their box. Coz it's 'fair then' 🙄

Housing is absolutely NOT a human right.

Unless you think people owe you their labour.

DH's job requires him to live onsite. Prior to him taking the job we lived in a home on which we were paying a mortgage and at some point in the future we will require our own house. We could have sold up, put the money in the bank and watched it devalue to the point where we couldn't afford to buy a house or we could reluctantly become landlords (with all the hassle attached to that) and maintain a stake in the housing market.

We are not raking in lots of money and there have been a number of years where we have made massive tax losses due to tenants trashing the place or not paying their rent. If I could live in my own house rather than being a landlord, believe me I would.

Not anymore it can't. You get a small credit but you cannot offset the full cost of the interest any more.

https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-aHQIA2d4bjXj

I’ve been reading all the responses with interest and I really don’t think it’s a bunfight. I went out for a walk this afternoon 🤷‍♀️

No.

Social housing is how much basic housing costs and what everybody should pay for a safe age secure house that is suitable for their needs. Private rents are over inflated and the shortage of social housing is what has created this artificial bubble where house prices are rising to eye watering levels and rents with them. The rental properties, often subsidised by universal credit for working families, are a subsidy for the landlord to increase wealth via the tax payer.

This is why we will never ever see a social housing project to the scale that we need. Never if everybody that needs social housing actually got it, rents would drop and house prices with it. This would be catastrophic for landlords and in turn, the banks that have financed the purchases. And so we carry on forward in an artificially created housing bubble.

Social housing is the price we should ALL be paying for basic safe and secure housing. Everything else is overpriced (unless it's larger more luxurious etc than the basic social housing)

Things have changed since we first became landlords. It isn't really worth the hassle anymore. Like many others we are seriously considering selling up. This is what is driving rents up. It's not so much the costs as it is supply and demand. If the landlords all get out of the market then there are less rental houses available and that drives up the prices.

To be clear. I think social housing is a Good Thing and that there should be much more of it available. I don't think private rentals are a bad thing or that they should be disallowed. I think there should be enough social housing available so that people only rent privately through choice rather than necessity but I think the choice should be available.

Social housing is subsidised though. The government puts funds in to social housing schemes which is how they can be affordable. This is not a bad thing. It is important that affordable housing is available.

The rental properties, often subsidised by universal credit for working families, are a subsidy for the landlord to increase wealth via the tax payer.

This is patently untrue. The majority of private rentals are not paid for by benefits. Figures are upthread.

Not a basic need for a roof over your head? It’s a bit like saying water isn’t a basic human right. Where would you like people to live? I’m fascinated now

@gamerchick WHY, would anyone give up a secure tenancy and go into the shit that is private rents? Why? It's a step down from SH

My point is about affordability. If financial circumstances change for the better, why shouldn't someone in social housing move on?
We moved several times in order to get better housing. It's not an alien concept.

Of course it’s much cheaper and has more benefits financial and otherwise when compared to private rentals.

That doesn’t mean it’s subsidised.

That doesn't really answer my question.

A roof is generally a need, but it's not a right. Neither is water, incidentally.

You may be confusing the two.

Yeah we're not really entitled to water. Know your place

So water isn’t a basic human right? You’re nuts

There's no such thing as an overpriced house If someone is willing to buy it.

If I built two identical "basic" houses, one in a field next to a railway track, and one in central London, do you think they should cost the same?

The question isn’t WHY, would anyone give up a secure tenancy and go into the shit that is private rents? Why? It's a step down from SH.

The question is why should someone who can afford market rents better than someone who can’t, not give up subsidised housing for someone who needs it more than they do?