Extension of Right To Buy Scheme

[poppet2 13]

I'm thinking that council houses in some areas could free up enough money to build whole new council estates.

 

http://www.theguardian.com/uk-news/2013/oct/28/london-council-house-3m-auction-borough

 

London council house raises £3m at auction - enough for 20 more homes

 

But land to build in London boroughs is extortionate and where is the space to build these new affordable homes in the rich boroughs where the million pound council houses are being sold off?

 

Where's Truman, he usually puts his two penneth worth in on this topic? Genuine question.

Edited April 14, 2015 by poppet2

[apelike 10]

Why should anyone be allowed to purchase subsidised state housing? If people want a house, do what everyone else does, buy your own.

 

But they are not subsidised.

 

The comments so far seem to show that no new council housing has been built for several decades. Homes that were built in the 1960's cost around £2,500 to build so have paid for themselves time and time again. That rent money then went to central government and then spent on other projects including lowering taxes.

[poppet2 13]

But they are not subsidised.

 

The comments so far seem to show that no new council housing has been built for several decades. Homes that were built in the 1960's cost around £2,500 to build so have paid for themselves time and time again. That rent money then went to central government and then spent on other projects including lowering taxes.

 

So why are the rents half the price of market rents and tenants can get up to 70% discount to buy their council property?

[psynuk 10]

But they are not subsidised.

 

The comments so far seem to show that no new council housing has been built for several decades. Homes that were built in the 1960's cost around £2,500 to build so have paid for themselves time and time again. That rent money then went to central government and then spent on other projects including lowering taxes.

 

They are subsidised,

it's a right to buy cheaper

 

My house is ex council and cost 110+k, a similar almost identical purchase on right to buy would be about 76k

 

The amount of time the property was rented at a low rate or a full rate has no bearing on the final price, the council are not property developers.

On the open market the price is X thousand,

right to buy = Xthousand - 33%ish

Thats a subsidy.

 

 

Just worked it out on the right to buy site,

If I was a council tenant for five years I would get a £41,500 (35%) discount on a property valued at 117k

that would mean to pay the market rate I would have to have been paying £666 per month rent for five years, not a chance.

then on top of that there's the lower interest payments from having a reduced mortgage, the 5% deposit is less.. so on and so on.

 

hmm not a subsidy at all then.

Edited April 14, 2015 by psynuk

[apelike 10]

They are subsidised,

it's a right to buy cheaper

 

My house is ex council and cost 110+k, a similar almost identical purchase on right to buy would be about 76k

 

The amount of time the property was rented at a low rate or a full rate has no bearing on the final price, the council are not property developers.

On the open market the price is X thousand,

right to buy = Xthousand - 33%ish

Thats a subsidy.

 

 

No its not, its a discount.

 

 

Just worked it out on the right to buy site,

If I was a council tenant for five years I would get a £41,500 (35%) discount on a property valued at 117k

that would mean to pay the market rate I would have to have been paying £666 per month rent for five years, not a chance.

then on top of that there's the lower interest payments from having a reduced mortgage, the 5% deposit is less.. so on and so on.

 

hmm not a subsidy at all then.

 

No its a discount which you have already pointed out above.

 

Dont confuse a discount with a subsidy.

 

 

Now, the new Help to Buy scheme is a subsidy and actually cost you, a taxpayer, money to implement. You are subsidising new first time house buyers.

[psynuk 10]

The difference being ?

 

I don't usually play dictionary wars but in this case...

 

A subsidy; is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy.

 

A discount; a deduction from the usual cost of something.

 

 

It is most definitely a subsidy (in the form of a discount if it pleases you)

 

More importantly it is an unequal sharing of the tax pot, and even more importantly it is reducing the number of social houses yet again. I don't hold any grudges against those who buy their council house, or the money they save on it. Because it's not that their getting a bargain it's more like the rest of us are getting ripped off.

Also the scheme, both past and present versions overlooked the rather important detail that just because one person/family is removed from the need to have a social house when they rent or buy one, that doesn't mean there is no need for a replacement house to be created in its place.

Even the current iteration of it won't work because the building of the replacements; won't happen, will take too long, be in the wrong place, be continually sold off, probably be privatised. etc etc.

[-Boomer- 10]

How about building a massive council estate around Parkhead?

[The Joker 10]

Why should anyone be allowed to purchase subsidised state housing? If people want a house, do what everyone else does, buy your own.

 

Exactly!

 

Why should our hard-earned £5.8 billion in taxes be given to these greedy, feckless leeches who want something for nothing?

[El Cid 212]

Exactly!

 

Why should our hard-earned £5.8 billion in taxes be given to these greedy, feckless leeches who want something for nothing?

 

I guess renting is a trap that its not easy to get out of. If its good to make estates more mixed, and good for society, then many different groups get hand outs from Governments. If everyone got the chance to rent and then buy, it would be much fairer.

I do agree that it is too much discount, but that is all about buying votes.

[harvey19 541]

When arguing about discounts/subsidies when council houses are sold should the discounts/subsidies in the form of benefits paid to help with rent costs etc. be considered.

[El Cid 212]

When arguing about discounts/subsidies when council houses are sold should the discounts/subsidies in the form of benefits paid to help with rent costs etc. be considered.

 

I know of single parents living mainly on benefits buying their own council house. Sometimes with help from other family members.

[Berberis 10]

I know of single parents living mainly on benefits buying their own council house. Sometimes with help from other family members.

 

You still have to have the means to pay. JSA is less then £4,000 per year so I don't see how a Bank would lend much against that amount. Maybe family buy the house for the family member.