Housing too expensive in UK?
Dec 18th 2007, 9:38 pm
#91
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Joined: Dec 2007
Posts: 172
Re: Housing too expensive in UK?
I agree with most of that, although I wouldn't necessarily say that living it for 20 years plus is the requirement. My sister and her boyfriend (now husband) bought their council house at about 50% of (resale) market value after having lived in it for 10 years or so. But you are right, they are not going to turn round and sell it - wherelse are they going to get that value for money? If they sold, their equity would get them no further than an equity jumpstart on the private market.
They love living where they are and having now bought, it has effectively put a stopper on rent raises and they have a house for a bargain price.
They love living where they are and having now bought, it has effectively put a stopper on rent raises and they have a house for a bargain price.
Dec 19th 2007, 2:14 am
#92
Cynically amused.
Joined: Oct 2002
Location: BC
Posts: 3,648
Re: Housing too expensive in UK?
Wrong...my parents spent 25 years in their council house paying a "high rent" they could not afford a house like the "rich" (banks would not give a mortgage in those days) they paid for the council house 3 times over in rent over 25 years...they were rightlt given the chance to buy it...and you say people sell after buying their council houses
no they do not...most have lived in the same house for 20 odd years and are happy to stay where they are and would be no better off if they sold and moved, these are older people who have qualified for the right to buy as they have been in the same house for 20 years plus.
no they do not...most have lived in the same house for 20 odd years and are happy to stay where they are and would be no better off if they sold and moved, these are older people who have qualified for the right to buy as they have been in the same house for 20 years plus.Last edited by dingbat; Dec 19th 2007 at 2:29 am.
Dec 19th 2007, 1:54 pm
#93
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Joined: Dec 2007
Posts: 172
Re: Housing too expensive in UK?
There is no way that a "high rent" was the market rate for rent, otherwise in your example, as your parents were working, they could have bought or moved elsewhere into the private sector at some point during twenty five years + . Kids grow up and move out, after all, so what would be the rationale for staying in a three bed council house, which was issued years ago based on need, once the kids have left? It's cheap. Cheaper than regular rents and cheaper than a regular mortgage. It's a benefit to the council tenant -dress it up how you will, buying a council house is a direct windfall benefit at the taxpayers expense, a windfall benefit that is morally repugnant (and would be taxable in many other circumstances) when there are so many people in need. If people want to buy property, move out, and leave the council house for a struggling family who have been waiting for a house for years. Empty nesters should not have any continuing entitlement based on length of tenancy. Council houses are subsidised social housing and tenants should be means tested annually to enable anyone to stay in them. I know of many younger families who bought their houses and netted quite the sum when they sold them on. They benefit by releasing equity, quite legal and quite the cash-cow. Working poor who don't qualify for houses or benefits in the UK are quite justifiably outraged when council stock is sold at bargain prices, to eventually become a taxpayer funded inheritance for someone else. Still, there is always the inheritance tax surprise, but I doubt any of that will get ploughed back into replacement social housing stock.
Its the lack of investment in social house building that has led to the problem we have now.
Dec 19th 2007, 2:33 pm
#94
Re vera, potas bene.
Joined: Jun 2005
Location: Cape Cod MA..Davenport FL
Posts: 2,405
Re: Housing too expensive in UK?
We were given 20 plus thousand pounds to move out of our 2 bed council flat about 15 years ago..we were the first people in the Fareham area to do it...so we go a very good deal...no strings like you get now....that is if its still going...
I can only find this now...I did hear it was now a loan and had to be paid back....
http://www.homesinhants.co.uk/index.asp
I can only find this now...I did hear it was now a loan and had to be paid back....
http://www.homesinhants.co.uk/index.asp
Last edited by krizzy; Dec 19th 2007 at 2:42 pm.
Dec 19th 2007, 4:25 pm
#95
Cynically amused.
Joined: Oct 2002
Location: BC
Posts: 3,648
Re: Housing too expensive in UK?
Wrong again, the banks would not lend more than 2x annual salary in those days and with my mother not working and my dad a low paid Fireman they could not get a mortgage, thet rent took up almost 30% of my dads wages and it was not a cheap rent, Thatcher was 100% in allowing people who had pain rent for more than 20 years the chance yo buy (oh for a a maggie now)
Its the lack of investment in social house building that has led to the problem we have now.
Its the lack of investment in social house building that has led to the problem we have now.
You don't see the irony do you? Never mind. We can agree to differ.
Dec 19th 2007, 4:49 pm
#96
Joined: Dec 2006
Posts: 250
Re: Housing too expensive in UK?
The council house sell-off was nothing more than buying votes.
Dec 19th 2007, 6:18 pm
#97
Banned
Joined: Dec 2007
Posts: 172
Re: Housing too expensive in UK?
What irony?, in the 50s mothers rarely went to work as there was no childcare whatsoever, the "sell off" of council houses saved councils millions in maintenance and collection of rent, it was actually costing them more to maintain a workforce to maintain the houses than the money they were getting in from rent...Councils were happy to sell them off at the time as houses were cheap and no fuss was been made untill house-prices went out of control over the last decade, there are thousands of buildings and empty buildings that could be used for housing but to be honest the Goverment dont give a toss.
Dec 19th 2007, 11:09 pm
#98
Joined: Dec 2006
Posts: 250
Re: Housing too expensive in UK?
Yes - that is what is meant by saying the rents were subsidised.
