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Boris Diverts Housing Cash To Wealthier London Inhabitants

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London Assembly is demanding to know why housing cash was diverted from poorest.

http://www.housingex...iverted-poorest

"Money earmarked to build much-needed housing for people on London's lowest incomes will now be spent on building homes to buy for those on medium incomes," said Darren Johnson AM "Many Londoners face being priced out of the capital due to ever-increasing rents in this sector. We want to hear from the Mayor why this decision was taken and what impact the funding reduction will have on providing low-rent housing for Londoners."

Eighty per cent of funding for the Mayor's Housing Covenant is being transferred from housing programmes Boris Johnson inherited to deliver social and affordable rented housing for the poorest in London, Darren Johnson said.

The covenant is a £118 million fund set up to meet London's housing aspirations for working people, including owning a share in a new home and as such will help Londoners with far higher earnings. While social and affordable tenants earn on average less than £13,000 per annum, Darren Johnson said the covenant will deliver affordable home ownership option for households earning up to £74,000.

Looks as though the more affluent London professionals are getting very good at this "socialism" lark. :lol:

Edited by aSecureTenant

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Households earning "up to" £74k pa and living in the London private rental sector are a long, long way from being wealthy. If that's one working adult on £45k and one on £29k they are probably taking home £4.5k per month excluding pension contributions, so maybe £4k including pension. At the moment £1k pm barely gets you the median 1 bedroom flat. If you have a family and so want 3 bedrooms you're looking at around £1.5k pm, so that's £2.5k pm of discretionary income. For that the couple is doing 100-120 hours a week of wage labour and commuting, so around 500 hours per month to get £2.5k after rent, or £5 per hour.

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I think reading between the lines everything is sooo ******ed up and expensive (inflation anyone?) that even those households on 74k require state assistance in order to buy.

I agree entirely the principle of shifting from the poorest to those that are better off (but still can't buy without assistance) is wrong though.

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Still can't believe Londoners voted him in.

He's alright, look at his hair

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Households earning "up to" £74k pa and living in the London private rental sector are a long, long way from being wealthy. If that's one working adult on £45k and one on £29k they are probably taking home £4.5k per month excluding pension contributions, so maybe £4k including pension. At the moment £1k pm barely gets you the median 1 bedroom flat. If you have a family and so want 3 bedrooms you're looking at around £1.5k pm, so that's £2.5k pm of discretionary income. For that the couple is doing 100-120 hours a week of wage labour and commuting, so around 500 hours per month to get £2.5k after rent, or £5 per hour.

I agree that £74k isn't a fortune these days but hardly feel it merits a social housing subsidy.

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Households earning "up to" £74k pa and living in the London private rental sector are a long, long way from being wealthy. If that's one working adult on £45k and one on £29k they are probably taking home £4.5k per month excluding pension contributions, so maybe £4k including pension. At the moment £1k pm barely gets you the median 1 bedroom flat. If you have a family and so want 3 bedrooms you're looking at around £1.5k pm, so that's £2.5k pm of discretionary income. For that the couple is doing 100-120 hours a week of wage labour and commuting, so around 500 hours per month to get £2.5k after rent, or £5 per hour.

a city walla speaks about why he deserves 74K.

100% nonsense of course....high salaries for some drive the myth...people should be leaving London in droves...If the financial sector wasnt being supported by the self same poor, then everything would have crashed long ago.

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I think reading between the lines everything is sooo ******ed up and expensive (inflation anyone?) that even those households on 74k require state assistance in order to buy.

I agree entirely the principle of shifting from the poorest to those that are better off (but still can't buy without assistance) is wrong though.

Its exactly what happens when the state stepsin to bail high paying bankers....Boris says they are worth it...i say, government action simply prices everyone else out.

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a city walla speaks about why he deserves 74K.

Not sure where you got that from... What you command in the labour market and what you can afford in the housing market are two totally separate things.

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Not sure where you got that from... What you command in the labour market and what you can afford in the housing market are two totally separate things.

normally true...but when the market IS the taxpayer with unlimited support...there is no command...there is only entitlement.

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Sounds like Boris is the one talking sense.

Create more housing supply, and relieve the pressure on it. Or create another round of a discredited corruption racket whose purpose is to select a few winners, leave other people marginalised, but above all enable politicians to say "look, we're doing something".

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Prices at Trafalgar Place start from £330,000 for a studio. But the average compensation the council offered for one-bedroom flats was £93,112.

One former resident, Orho Okorodudu, was offered only £80,000 for his Heygate flat. He is now living in Slough. He told a BBC documentary: “We realised that local properties started at around £300,000.

http://www.standard.co.uk/news/london/residents-of-the-heygate-estate-forced-to-move-out-of-london-8743216.html

Some local estate agents are asking £65k for one bed council flats in Kirklees so the level of compensation seems pretty paltry. Pretty soon ex Local authority flats will be unaffordable.

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