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Right To Buy Eligibility Reduced To Three Years

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This sneaked through the Commons last night..

http://www.insidehousing.co.uk/home/blogs/paying-the-bill/7004332.blog

However, here’s what will become law in England this summer as a result of Monday’s votes (there are other minor changes I don’t have room for):

  • The qualifying period for the right to buy will be reduced from five years to three
  • Local authorities will no longer be able to impose standards for new homes that go beyond the building regulations (mainly on energy efficiency)
  • Legislation banning short-term lets of homes in London will be repealed
  • The secretary of state will no longer have the power to require local authorities to produce housing strategies

The last of these may sound more important than it actually is because as I understand it the power has never actually been used but the other three could have major implications and there were last-minute attempts to amend all of them on Monday night.

So from October I'll be eligible to buy. Would I buy? Well it depends on whether we continue to have inflation busting social rent rises. That is the 'stick' of course.

Edited by aSecureTenant

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Looking at this from my perspective (not being a tenant of a council owned house), RTB buyers are not market participants so it's hard to see how this could have any effect on current market prices. RTB sales are not included in the Land Registry data as they aren't at full market value, so a short term increase in RTB purchases (from demand brought forward) isn't going to have any effect on published HPI figures. On the other hand, in some cases it's going to be taking future buyers out of the market, since if somebody is in a council owned house and wants to buy, they are more likely to wait for RTB eligibility.

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Anyone that can afford to buy their council home, shouldn't be eligble to live in one. Maybe I'm stuck in a Clement Attlee 1940's timewarp, where the original intent was to reserve them for the socially and financially disadvanged.

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It's like the DFS sale. Buy now - last day of sale.

(What's the discount like? If it's a decent houses in a decent area and it's a good price then it's free money)

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Looking at this from my perspective (not being a tenant of a council owned house), RTB buyers are not market participants so it's hard to see how this could have any effect on current market prices. RTB sales are not included in the Land Registry data as they aren't at full market value, so a short term increase in RTB purchases (from demand brought forward) isn't going to have any effect on published HPI figures. On the other hand, in some cases it's going to be taking future buyers out of the market, since if somebody is in a council owned house and wants to buy, they are more likely to wait for RTB eligibility.

A friend of mine got a £70000 discount!

well worth waiting 3 years!

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A friend of mine got a £70000 discount!

well worth waiting 3 years!

Looks like I'll be eligible in October. Looking at £32k discount on £64k which seems to be the going rate on local sales (assuming its 50% after three years and not five).

What is one to do, with above inflation social rent rises, and if the Tories get in again, what is left of social housing will end up in the hands of their hedge fund mates anyway.

Edited by aSecureTenant

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Well, I guess my 2 bedroomed bungalow would be `valued` at 200,000 so I`d have to come up with 130,000 leaving a discount of 70,000.

I had thought that RTB had slipped from my hands (due to a stroke) but it seems that I`ll be starting work again over the next couple of weeks.

And we`ve had a new boiler put in too....

I wish I could get away with 32,000.....I suppose getting away with 130,000 must be pretty neat for most though.....

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meanwhile, 9bn in overseas aid...thats 9bn in borrowed funds of course.

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Everything and the kitchen sink to ensure a pre-election bubble.

You must disagree then with my above conclusion that this could only add downward pressure on prices by taking potential buyers out of the private market (and that's assuming that there are social housing tenants that could afford to buy in the private market in any quantity) and therefore reducing demand.

Thinking it though further, once the sale goes through, the buyer becomes a potential seller in the private market, in effect increasing supply (though the seller is likely to also be a buyer, so demand also).

But if you were a council house tenant and wanting to buy in the private market, buying your council house for £70,000 discount and immediately selling it for full market value would be one heck of a quick way to make £70,000 (unless there are strings attached to RTB, I don't know), giving you a big step up, and releasing a new house into the market in the process, increasing supply with no net effect on demand.

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I think you have to wait 5 years before you can sell.

Thanks, I though it seemed a bit too good to be true. I think my argument about relieving pressure on the buy side still stands though, although by how much, no idea, probably negligible.

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You must disagree then with my above conclusion that this could only add downward pressure on prices by taking potential buyers out of the private market (and that's assuming that there are social housing tenants that could afford to buy in the private market in any quantity) and therefore reducing demand.

Thinking it though further, once the sale goes through, the buyer becomes a potential seller in the private market, in effect increasing supply (though the seller is likely to also be a buyer, so demand also).

But if you were a council house tenant and wanting to buy in the private market, buying your council house for £70,000 discount and immediately selling it for full market value would be one heck of a quick way to make £70,000 (unless there are strings attached to RTB, I don't know), giving you a big step up, and releasing a new house into the market in the process, increasing supply with no net effect on demand.

Less social housing = more BTL = more upward pressure on prices from private landlords collecting housing benefit.

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does this include right to acquire? i believe i can save a whopping 9k if it is

...has been known that people are paid more than double that to move out. :o

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From 5 to 3 years? :blink: Well I suppose it was always feasible with a Tory led coalition government. Seems like a backwards step especially now that councils are building homes again.

Abolishing RTB was the way to go. And I say this as someone whose parents bought their council house.

Edited by MattW

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...suck in as many buyers before the election ...keep the bubble ..bubbling....the ineptitude and deceit is arrogance beyond repair....no vote from me to them any more ...they need to be voted out ...whatever.... :rolleyes:

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Less social housing = more BTL = more upward pressure on prices from private landlords collecting housing benefit.

Perhaps the upward/downward pressures will just balance out, short term then. Though at the end of the day, you're right, we've lost more social housing and spent more taxpayers money in the process.

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Anyone that can afford to buy their council home, shouldn't be eligble to live in one. Maybe I'm stuck in a Clement Attlee 1940's timewarp, where the original intent was to reserve them for the socially and financially disadvanged.

I think that's probably the right attitude.

I was called for pointing out the people allocated the one on my street recently have two shiny new cars and have time to play golf.

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.....by the way, council housing has never been means tested.

Does anyone know any different?

Or can we put this urban myth/hpc myth to bed?

This is true. I joined the housing register when I worked part time (have since come off it).

They never asked who I worked for or how much I earned.

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