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crash2006

The New 80% Affordable Socialhousing Rules Failure For Low Income Workers

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A friend of mine has just be given a new contract, he tells me that he is unable to afford it. He just sign up to the new affordable rent policy 80% of market rents via a housing association, he is paying 120% more than others in the building. He was telling me that if he remains at the current place he would need to slash hes spending buy the equivalent amount. He tells me the new affordable rents are unaffordable, and is unsure how long he could live at the current address. He has two options move out and lose a secure place or just give up work. He also suggested that if he has to pay such high rents then the place needs to come with fitted carpets, at the moment he has to pay for the carpets, plus if he has to pay 80% of the market rate then the surroundings/ decoration needs to be based on 80% of those properties in the area.ie major improvements need to be done to the communal entrance, hallways etc.. to bring it up to standard equivalent to the properties that surround his.

He now has to apply for housing benefit, how many others need to do the same.

This made me thing who are these affordable rents aimed at, and what benefit are they over going private? what motivation is there too work if someone on a low wage now has to pay 75 % of his earnings towards rent.

I personal think this policy needs revising social rents are a thing of the past

Edited by crash2006

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A friend of mine has just be given a new contract, he tells me that he is unable to afford it. He just sign up to the new affordable rent policy 80% of market rents via a housing association, he is paying 120% more than others in the building. He was telling me that if he remains at the current place he would need to slash hes spending buy the equivalent amount. He tells me the new affordable rents are unaffordable, and is unsure how long he could live at the current address. He has two options move out and lose a secure place or just give up work. He also suggested that if he has to pay such high rents then the place needs to come with fitted carpets, at the moment he has to pay for the carpets, plus if he has to pay 80% of the market rate then the surroundings/ decoration needs to be based on 80% of those properties in the area.ie major improvements need to be done to the communal entrance, hallways etc.. to bring it up to standard equivalent to the properties that surround his.

He now has to apply for housing benefit, how many others need to do the same.

This made me thing who are these affordable rents aimed at, and what benefit are they over going private? what motivation is there too work if someone on a low wage now has to pay 75 % of his earnings towards rent.

I personal think this policy needs revising social rents are a thing of the past

Well where I live the distinction between market and social are very small to non existent on studio's and one bed flats.

My rent would be equivalent to one third national minimum wage, where on average historically council rents represented 25% of a mans wage.

I guess in London it would be even higher, perhaps half NMW?

Almost certainly your friend could rent from a bank more cheaply than an HA, which is perhaps what they are really trying to achieve.

I really can't understand why there haven't been more protests over rent increases, but if they are "cushioned" by housing benefit (for both working and non working) then there wouldn't be I guess.

Edited by aSecureTenant

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I think my current digs is an early version of the so called 'Affordable Rent' schemes. I rent via a Housing Association (a very good landlord to date) on a shorthold tenancy basis. Still paying around 40% of my gross income towards rent, however. :( I have white goods and carpets...although no underlay! :rolleyes:

Do Housing Associations who offer 'Affordable Rent' properties not realise that, while typical tenants with incomes can pay a bit more than their social housing tenants, said tenants also have to pay significantly to get to their places of employment, amongst other things.

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HAs ,ALMOS,and all other none council arms length social housing now exist simply to give the employees a cushioned life.Our local one has just won an award for being such a great place to work.Well of course it has.Flexi time,35 hour weeks,43 days paid holiday,6 months full sick pay,final salary pension,etc etc.

The rents around here are now just under £100 a week so about 10% under private rentals.Most jobs NMW.

That was why the bedroom tax was structured as it is.It slices 15% HB from working claiments as well as it comes off the top not the bottom.

Just another out of control snouts in the trough area.

RPI+1% increase every year while wages are growing at RPI -2% ,take that serfs.

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He's neighbours are paying £420 a month he is paying £910 a month his wages £1280 a month after tax, clearly he cannot afford it and tells me that he is really thinking about giving up work.

how can this be called affordable rent by housing associations.

Edited by crash2006

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He's neighbours are paying £420 a month he is paying £910 a month his wages £1280 a month after tax, clearly he cannot afford it and tells me that he is really thinking about giving up work.

how can this be called affordable rent by housing associations.

So 71% of his net income is going towards rent. Bloody hell! :blink:

46% of my net income is going towards my rent - that's bad enough!

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So 71% of his net income is going towards rent. Bloody hell! :blink:

46% of my net income is going towards my rent - that's bad enough!

71% is very bonkers! :blink:

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71% is very bonkers! :blink:

Hence he has 2 options leave and find somewhere cheap which means living further away, or give up work, he is thinking of giving it up, his contract is coming up for a possible renewal.

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Someone has to pay for the six figure salary the CEO of the housing association will be on. Their talent deserves it.

Social rents doesn't mean cutting the wages of the talent running the business.

Perhaps they should get a second job in our booming economy to pay the bills?

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What's the legal definition of affordable?

In the UK, up to 80% of the local market rent, in terms of the "Affordable Rent" policy (see http://www.parliament.uk/briefing-papers/SN05933/affordable-rent-model). So no correlation whatsoever with income, making the word "affordable" a nonsense.

In civilized countries, like France, roughly one third of household income.

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In the UK, up to 80% of the local market rent, in terms of the "Affordable Rent" policy (see http://www.parliament.uk/briefing-papers/SN05933/affordable-rent-model). So no correlation whatsoever with income, making the word "affordable" a nonsense.

In civilized countries, like France, roughly one third of household income.

One third of income without HB top-ups should indeed be the definition of affordable rent. This may mean tenants paying variable amounts of rent according to their incomes. Some people may find it unfair that they're paying more in rent than their NMW neighbours, but the trade-off would be that costs will never escalate beyond their affordability and wold still be considerably cheaper than private market rents.

The extra rent generated could be ploughed back into building more social housing, opening it up to a wider range of people and exerting considerable downwards pressure on private rents.

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One third of income without HB top-ups should indeed be the definition of affordable rent. This may mean tenants paying variable amounts of rent according to their incomes. Some people may find it unfair that they're paying more in rent than their NMW neighbours, but the trade-off would be that costs will never escalate beyond their affordability and wold still be considerably cheaper than private market rents.

The extra rent generated could be ploughed back into building more social housing, opening it up to a wider range of people and exerting considerable downwards pressure on private rents.

Social rents are 40% +/- to put them upto 80% stops people working, the same argument that a 50% tax on income would stop the people trying harder. Social housing has paid for itself 3 x over, the money raise does not even come up to a billion pounds, yet they can spend estimate 50 billion on HS2, 12 billion and greater on Aid and billions on deposit schemes, yet only raise less than a billion on introducing higher rents. Lower rents mean more workers paying tax, meaning less requiring housing benefit and other benefits. the savings out weight the cost to the individual or state. lower social rents would push us towards economic growth along with more social housing building.

Edited by crash2006

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  • 241 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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