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dubsie

How Long Before Housing Associations Fall

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With funding set to fall and the prospect of cancelled housing projects how long will it be before we see some large housing associations collapse.

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With funding set to fall and the prospect of cancelled housing projects how long will it be before we see some large housing associations collapse.

Housing association are self funded. Why would they fail?

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Housing association are self funded. Why would they fail?

Because their business model relies on being able to pump the government for funding whilst at the same time raising rents to 'private' levels

and not realising that they are the trend.

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With funding set to fall and the prospect of cancelled housing projects how long will it be before we see some large housing associations collapse.

If they're allowed to sell off properties as they become vacant they should be able to survive for a few years.

The days of pushing rents up 7 or 8% per year and getting this covered by HB are over though. Borrowing more and more on increasing property values also looks a bit unlikely now.

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Many will be kept going, some whom bought normal not social houes will be told to sell!

Mike

Que? Who will tell them to sell and how do they have that power over them?

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A lot of the London auctions are packed with Housing Association properties. The exodus is already happening.

Don't they usually make excuses for this though....like saying that the cost of bringing these particular properties up the decent homes level is too high?

More like they need to service enormous loans and pay fat exec. salaries.

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Que? Who will tell them to sell and how do they have that power over them?

I think there was a court ruling last year which said that they were publicly owned....still pretty unclear if you ask me.

They certainly like to gobble benefits..

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Don't they usually make excuses for this though....like saying that the cost of bringing these particular properties up the decent homes level is too high?

More like they need to service enormous loans and pay fat exec. salaries.

That's my thinking too.

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I think there was a court ruling last year which said that they were publicly owned....still pretty unclear if you ask me.

They certainly like to gobble benefits..

I was just surprised by what Mega said - i.e. say you bought a 50% share of a HA house but you're not a social tenant, are you at any risk of the HA saying 'clear out, we need to sell this to get some cash'? This is hypothetical, btw.

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We do a lot of work for HA and the management guy we deal with is saying they are expecting 25% reduction in income.

Could be enough to tip a few over the edge seeing as he also said that 75% of their tenants are on housing benefit which is being dropped to the 30th percentile.

He expects big job losses across all the HA.

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I was just surprised by what Mega said - i.e. say you bought a 50% share of a HA house but you're not a social tenant, are you at any risk of the HA saying 'clear out, we need to sell this to get some cash'? This is hypothetical, btw.

Glad it's hypothetical!

I guess you have to check the small print in each case.

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We do a lot of work for HA and the management guy we deal with is saying they are expecting 25% reduction in income.

Could be enough to tip a few over the edge seeing as he also said that 75% of their tenants are on housing benefit which is being dropped to the 30th percentile.

He expects big job losses across all the HA.

Fantastic management, so they didn't have a plan for if revenue fell for any reason!

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  • 145 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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