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fru-gal

Sell Off High Value Social Housing To Build More

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Better to build multiple social homes than keep a few very valuable ones that only serve one or two lucky families.

If this is true then it could change the face of the private rented sector and the social rented sector. Less competition in the PRS means lower rents and more social homes;

http://www.policyexc...ocial-tenancies

http://www.24dash.co...ans-for-housing

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Um, this has been happening for at least a decade.

Housing Associations do a cashflow analysis of each house they own (future rents vs future maintenance costs) to get a cash NPV and compare this to the market value.

If it's a big old Victorian house (for example) then the maintenance will be horrendous and the rent won't cover it, so when it becomes void it will be sold and the proceeds ring-fenced to be used to build new houses.

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Um, this has been happening for at least a decade.

Housing Associations do a cashflow analysis of each house they own (future rents vs future maintenance costs) to get a cash NPV and compare this to the market value.

If it's a big old Victorian house (for example) then the maintenance will be horrendous and the rent won't cover it, so when it becomes void it will be sold and the proceeds ring-fenced to be used to build new houses.

I think the change is that all councils will now be legally required to sell properties that are high valued (according to a certain formula) in order to build more homes. The Policy Exchange is Nick Boles MP's baby. For a Conservative he is pushing for some pretty good housing policies (although he has been up against the typical older nimby Conservatives who are against anything that will increase housebuilding).

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Makes sense to me.

I think that the recent protest in London where the borough council (sorry i forgot which one) sold 2 Victorian/Georgian council houses at auction for £ millions was a bit of an own goal. After all, those proceeds would help many more families in housing need.

I have noticed some grand looking Victorian homes in my city go to auction. I suspect they were previously council houses.

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