£10.5 million in unpaid Sheffield Homes rent is not a problem

[chem1st 10]

http://www.thestar.co.uk/news/105m--Staggering-losses-for.6478337.jp?CommentPage=2&CommentPageLength=10#comments

 

A MASSIVE £10.5 million has been lost from Sheffield city coffers in the last six years by council tenants failing to pay their rent, The Star can revea

 

The comments are quite comical.

 

Anyhow, I can reveal that the figure of £10.5 million is not a problem when you think of other losses made intentionally by Sheffield Homes, especially when the above money is 'owed' and not lost.

 

For the past 5 years, Parkhill (a unit of social housing equal to 1000 dwellings) has been 50%+ empty. This is because the powers that be thought fit to give it away, to privatise it, along with £20+ millions in taxpayer funded grants.

 

Assume a rent of £50pw (2.6k per year), with council tax band A of £983pa, assume all properties are lived in by single people under 25 on JSA of £52pw.

 

Lets call the council tax bill per property £725 per year, and the JSA payments £2.6k per year to take into account increases in these amounts over the past 5 years and the single person council tax discount.

 

5*500*£2600 = £6.5 million in lost rent

5*500*£725 = £1.8125 million in lost council tax

5*500*£2600 = £6.5 million lost to the local economy

 

These are under estimates of the money generated by Parkhill lost due to it 'regeneration', over a period of 5 years.

 

This amount will be lost again over the next 5 years.

750 social housing units will be lost.

The cost of regeneration will be in the region of £160000 per unit (1000 units, £160Mil budget), people won't buy them, and the council will presumably purchase them back.

 

Now, just for a moment consider this;

 

How many homes have been demolished throughout Sheffield?

How many homes did Sheffield Homes have 5 years ago, 10, 15, 20 years ago?

18500+ bid weekly through Sheffield Homes. 100000+ on the list and only 42000 properties, only a few years ago there were 46000 properties.

 

How much is the vast under supply of housing costing Sheffield as a city in lost council tax and rent? - Money that can never be recovered.

How much is it damaging the local economy?

What effect is it having upon the people of Sheffield, particularly those without access to social housing (the young, the working poor, non-priority homeless etc.)?

What are the relations between housing and mental health, general health, employment prospects etc.

[eastbank 10]

how can anyone get away without paying their rent for a year.....no wonder this council is in a mess....come on cameron...anyone house in arrears....sell it off...i'll have one

[Bloomdido 10]

Less than 10 years ago there were 2,500 empty council properties. What happened?

[Fareast 10]

Not being an economist, nor a housing expert, I can only add the layman 's view, that the whole thing sounds a bloody mess ! [ Other descriptions come to mind as well ! ].

 

However, we can rest assured that no bureaucrat will ever suffer for all this waste and / or incompetence, excuses will be popping up by the minute..........and the gilded world of Red Tape & Jobsworths will glide along untouched in our City of Culture in the foreseeable future.

Hip hip ! And Three Cheers for Old Brittania !

[BinHad 10]

if the tennant bothers to go to court for rental arrears, 9/10 times they get let off by magistrates due to cost's. So a little birdy tells me.

[barnie41 29]

Having worked on many of Sheffield council estates - its amazing how many people are open about being behind on the rent - but have plenty of money for cigs/ booze/ foreign holidays/ Sky dish/ 42" plasma TV's. No more need be said Its high time they were chased hard for that cash, and kicked out. It might just change some peoples perception of priorities.

[eastbank 10]

the tories will just about knock 10 mill off our budget because the divvies at the council cannot collect the rent....

if they don't pay their way...boot em out...there is a waiting list for council houses so we are told...

[kal el 11]

8 years ago i was put into hospital by a mugging.i couldent go to work for months becouse i was on cruches.i was given hb and was paying water rates as it was then.becouse i couldent walk i paid the rent on a monthly basis,i went to the rent office paid the 20 quid that was due,half hour later the housing was banging on my door demanding that i paid the 20 quid that i just paid.i told them to go and pester the drug dealers who arnt paying rent and leave me alone.why do they pick on tennants who pay on time,and not the ones who abuse the system

[meekaz 10]

There is about 6 times that amount outstanding from child maintenance. Maintenance is not just from council tenants though so maybe it won't get as much venom its way as this or people claiming benefits which seems to be the band wagon everyone is clambering onto now immigration is being dealt with.

[kal el 11]

immigration is not being dealt with there are now more immigrants in my area than 5 years ago

[barnie41 29]

There is about 6 times that amount outstanding from child maintenance. Maintenance is not just from council tenants though so maybe it won't get as much venom its way as this or people claiming benefits which seems to be the band wagon everyone is clambering onto now immigration is being dealt with.

 

Only because this thread is about unpaid council rents - not child maintenance.

[meekaz 10]

Only because this thread is about unpaid council rents - not child maintenance.

I know that, I am just putting it into perspective before the pitch folks come out.