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enrieb

Will The Right To Buy Council Housing Make A Comeback

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Does anyone know the new governments policy on council tenants Right To Buy Scheme for housing? It would seem like a good method of raising revenue and at the same time removing some of the maintenance costs from local authorities.

http://en.wikipedia.org/wiki/Right_to_buy_scheme

The Right to Buy rules were changed in 2005. Five years' tenancy is now required for new tenants to qualify, and properties purchased after October 2004 can no longer immediately be placed on the open market should the owner decide to sell. Such owners must now approach their previous landlord (Registered Social Landlords RSLs) and offer them 'first right of refusal.' If the RSL is unable to offer a realistic purchase price, then that landlord still has the right to offer the property to an alternative RSL.

All RSL's are now legally obligated to offer Right to Buy advice including advice on high fee-charging Mortgage Brokers. The time in which Right to Buy conveyancing should take place has been reduced from 12 months to 3 months. The Financial Services Authority now governs and regulates most types of mortgage-selling.

Edited by enrieb

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Does anyone know the new governments policy on council tenants Right To Buy Scheme for housing? It would seem like a good method of raising revenue and at the same time removing some of the maintenance costs from local authorities.

http://en.wikipedia....t_to_buy_scheme

The real Government fund raising plan is actually contained in this document: http://www.communities.gov.uk/publications/housing/selffinancingprospectus

Read sections 1.1 to about 1.4 (as below) and you get the drift. Basically the Government effectively owns Council Houses, and has allowed local authorities to manage them, though the Government has traditionally taken a good chunk of the rents and 70% of the capital receipts from sale by the local authority. Under the new plans local authorities will get to borrow to buy the council homes in their areas outright.

My cynical view is that this is a transfer of debt from Central Government to Local Government, under the auspices that local Councils will now "own" their housing stock. Essentially this is a form of cooking the books.

1.1 Council housing is a substantial public asset that has been created by investment of

public funds over many years by central and local government. 1.8 million council

houses are home to around 4.2 million people. Local authorities spend around

£6 billion each year on managing, maintaining and repairing those homes and on

financing the costs of construction and other capital investment. It is an asset that

needs strong management and investment to ensure it continues to meet people’s

housing needs in future.

1.2 But the current redistributive system for financing council housing was established

in the 1930s and has continued in its essential form since then. It is no longer fit for

purpose. We are proposing to replace this centralised, redistributive system with a

new system that devolves financing and accountability to local authorities. This will

give councils more flexibility to respond to the needs of local people and more ability

to plan long term, driving up services and improving efficiency.

1.3 This new system will be created by a once and for all new settlement between central

and local government. In exchange for a one-off allocation of debt between local

authorities, Central Government will stop the annual redistribution of rental income.

1.4 Councils will have a predictable income stream, their own rents, which they can use

to maintain their own stock. Local authorities will also be able to reinvest all of their

own capital receipts as part of a comprehensive asset management strategy.

1.5 The new system is based on a fair starting point for each local authority that will

free it from Central Government control. This starting point will be established by

estimating the income and expenditure for each local authority using new evidence

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Does anyone know the new governments policy on council tenants Right To Buy Scheme for housing? It would seem like a good method of raising revenue and at the same time removing some of the maintenance costs from local authorities.

http://en.wikipedia.org/wiki/Right_to_buy_scheme

All I know is that Grant shapps has said that they'll continue and expand RTB.

Of course there's no reason that councils shouldn't be allowed to sell houses directly to tenants as this would mean that they could receive a steady 'income' for say 25 years and have no maintenance costs. No or small discounts would be all that's necessary. As I see it the large discounts were mainly to encourage banks to provide sub-prime mortgages.

The previous government valued the housing stock at 25 billion and given the current debt situation it's likely that this will need to be tapped into.

I'm not going into the rights and wrongs of RTB, we're maybe past that stage. Chopping up the ship to feed the boiler springs to mind.

Edited by council dweller

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Not that simple. Most homes are now owned by housing associations and they can not be forced to sell stock.

Yeah, so lets keep it on the million plus properties that are 'council houses'.

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  • 260 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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