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Sheffield City Council to raise rents 7%

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:huh::huh::huh::huh: i dont understand this post please explain

 

I'm not sure what is confusing you? I thought it might be helpful to give some details of what the average council rents are in Sheffield. If you tell me what you don't understand, I'll try and explain.

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7% is a lot, however it is better for me being a landlord and owning an ex Council property. But that's another debate. I feel sorry for the low paid who are not getting any benefit but it could be worse, they could be renting privately.

 

When I was younger in the 80's I used to look at the houses on Arbourthorne, Parson X and Manor and think if these old houses have been built in the 30's on say a 30 year mortgage, then they must have been payed off 20 years ago. But if the houses are payed for and nothing is being spent on them then where's all the rent going to? They might be making themselves look good spending money on them a lately but some one's being taking some tenants for a fool.

 

Perhaps they are still paying for the flats at Kelvin, Hyde Park, Hanover Street etc which I seem to think didn't last 30 years (or even 25 years for some)

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You will probably find the mortgage is interest only. He has a point though. My tenants could buy the house they live in for what they pay in rent. I suppose they can't find the 20% deposit. I worked 7 days a week and had 2 jobs to pay for my deposit on my first house. But I did it the old fashioned way. Stayed at home paying a little board. Saved for a deposit (20%) over 3 years, got my house and then got married. It the other way today. First have kids, rent, get a house (maybe) then after 10 years or so get married. :huh:

 

Nope capital + interest, (95k) over 20 or 25(cant remember) was a lot more but we came out of our fixed period and now are on a nice 2.5% interest :cool:

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why because you dont want council property why should we pay the earth for those who do live in council properties?

 

My opinion of council housing has always been one of it being a stop gap, for people who are in need.

 

The council need to make money and one way is to increase rents and make a bigger profit. Its not just housing they are raising rents on its everything, garages, allotments (some by over 200%) etc.

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Lets remember why Council housing came about in the late 20's. Things are different now and should it be the Councils job to house people? Let the Council get on with running the City and let Housing Associations take over the social housing.

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I'm not sure what is confusing you? I thought it might be helpful to give some details of what the average council rents are in Sheffield. If you tell me what you don't understand, I'll try and explain.

 

What should concern the people of Sheffield is the rent vs wages and the rate of increase/decrease of each (current monetary policy is aiming for constant inflation, and is being unsuccessful).

 

Wages are rising below inflation. And have been for a long time.

 

Whilst rents are rising above inflation. And have been for a long time.

 

 

From this we can determine that rents are getting more expensive. But not in nominal terms, in relative terms.

 

A systematic robbery of the people is taking place. This is a complete disgrace and those in power in our fine city should hang their heads in shame.

 

We need homes fit for humans.

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Yes but the rent included maintenance and building insurance. There's also the issue of interest on the mortgage!

Well, yes, that's the whole point of people lending money, they charge you a fee for the priveldge. If you've ever hired a car/skip/bouncy castle/electrician does it come free?

 

Tho' by my calculations £100,000 over 25 years at 5% APR would be £585 per month. £110 per month would only be enough to pay a mortgage of £19,000.

Edited by jgharston

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What should concern the people of Sheffield is the rent vs wages and the rate of increase/decrease of each (current monetary policy is aiming for constant inflation, and is being unsuccessful).

 

Wages are rising below inflation. And have been for a long time.

 

Whilst rents are rising above inflation. And have been for a long time.

 

 

From this we can determine that rents are getting more expensive. But not in nominal terms, in relative terms.

 

A systematic robbery of the people is taking place. This is a complete disgrace and those in power in our fine city should hang their heads in shame.

 

We need homes fit for humans.

 

As mentioned before. local councils do not set rent charges, its the government that decides the increase. Likewise Sheffield has been told to cut its heating charge.

 

Any extra money raised by the increase, the council nore sheffield homes can keep. its wired straight back to government, who then give a portion back to the council.

 

As much as I hate the condem local council, the increase isn't their fault. But as our elected council, they could have voiced the reaction of the tenants of sheffield back to whitehall.

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It said in an article in The Star a while back that the rents were going up by 6.8% to bring them in line with rents charged by Housing Associations.

 

Found The Star articles Council house rent rise (12/1/11) and Council rent rise cap plea (13/1/11)

 

By 2012 all council and housing association rents have to be equal, so this 7% increase is the council houses being pulled into line with the local housing associations.

 

As far as I know the formula used by Housing Associations are based on criteria set by the government back in 1999, taking into account the area, number of rooms and some sort of link between the local averae wage and the national average wage. One would assume that any discrepancies between the housing associations in Sheffield and what they charge for rent is also being ironed out, so the rent playing field is a lot flatter.

 

What no doubt is being kept quiet for the sake of poor journalism, is once the 7% increase has been applied to bring the rent into line with HA rent, any further increases can only be 0.5% above the rate of inflation in the future.

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well i think its about time i have a housing association property and pay £80 a week for a 2 bed while a friend who rents from council only pays £53 a week for same size house its not fair!!!!!!

I agree that they are rising way above wages but like everyone is stating its NOT the council who decides the increase!!!! Maybe if everyone stopped moaning and actually did something like they do in other countries we may not be in such a mess!!!!

 

 

 

MY OPINION COUNTS

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By 2012 all council and housing association rents have to be equal, so this 7% increase is the council houses being pulled into line with the local housing associations.

 

As far as I know the formula used by Housing Associations are based on criteria set by the government back in 1999, taking into account the area, number of rooms and some sort of link between the local averae wage and the national average wage. One would assume that any discrepancies between the housing associations in Sheffield and what they charge for rent is also being ironed out, so the rent playing field is a lot flatter.

 

What no doubt is being kept quiet for the sake of poor journalism, is once the 7% increase has been applied to bring the rent into line with HA rent, any further increases can only be 0.5% above the rate of inflation in the future.

 

Good point about future rent rises. However, the timeline for 'rent convergence', ie equalising rents between housing associations and councils has been extended to 2015/16 by the current government. http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/snsp-01090.pdf

 

They are also continuing the previous government's plan to change councils' housing revenue accounts to being self financing. This means that in future councils like Sheffield won't be getting a subsidy from better off areas. However, Sheffield's housing debt of over £900k is being reduced to just over £200k, whereas many councils are having to take on debt.

http://www.insidehousing.co.uk/Journals/1/Files/2010/4/8/HRA%20debt%20table.xls

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Quite a lot of the city has had terrible problems with poor workmanship that is managed by Sheffield Homes. It is being swept under the carpet, to the height of a mountain now. Once you look around and chat to other people you hear of so much poor workmanship it is a disgrace. Sheffield Homes send magazines around saying how good what they do is. But when you talk to people they have some major problems. Lots of windows, kitchens, wiring, bathrooms have all been put in so badly that people have had terrible problems. They report it and nothing is done. This is such a common story it makes you wonder what is going on. Lots of windows in all parts of the city have been put in so badly that wind blows through them. Water leaks through them, people have had to insulate new windows as the windows do not fit the frames. At least with a private landlord it is easier to get something done. When a big landlord like Sheffield Homes is in charge they can pretend what they do is great. People living in their properties think theirs is a one off, but it's a common story round the city. Just because people live in council properties does not mean they do not deserve the same service as others. A lot of people in council properties work and pay full rent. If they were private rented their income is so low they would be get help towards rent, because the rent is more. People do deserve a decent home and Sheffield Homes are providing something that would be unacceptable to the private sector. Good on anyone raising this, after all the people of Sheffield deserve value for money. If you do not insist on better standards you will not get better standards.

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