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Lib Dem Manifesto - Social Housing Rent Would Go Towards Equity In Home


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HOLA441

http://www.dailymail.co.uk/news/article-2801772/Lib-Dems-ENTIRE-manifesto-snapped-photographer-reveals-tax-cuts-English-test-dole-20-hours-free-childcare-children.html

On housing, more help is promised for people struggling to get on to the property ladder. It includes a 'new model of affordable housing' where rent payments earn a stake in a home, 'creating a path to home ownership for lower income working families'.

Hmmm...Don't know what to make of this...

Edited by Dave Beans
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HOLA442
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HOLA445

Make a payment every month and you build up equity in a house?

Isn't this called a mortgage?

..although wrt rentals, social housing is typically cheaper than private...round my way, i.e you pay £80-100 a week say for a two bed mid terrace, or private rent could well be £550 p/m, and a mortgage is £750 p/m...

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I think I do.....in the days of Thatcher, that was the argument that allowed people that had been social tenants for many years 20 or 30 paying social rent all those years, they were in effect sitting tenants that could pass from Father to Son.....they may have paid for the house in rent and by selling at a discount would give them something they had already paid or almost paid for, but would then have full responsibility of the care and maintenance, new roof, painting windows etc that was not cheap.

Cash into the coffers...that they fritted away on stuff they needed to pay for at the time, instead of investing in new social housing for a new generation of need. ;)

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HOLA447

It'll just be another shared ownership-style scam, where a favoured demographic can kid themselves that they have obtained an 'affordable' home. The rest of us, less gullible or less electorally important, will be left at the mercy of the private market of fantasy asking prices. And I guarantee there'll be small print allowing some middleman to skim from the tenant's productivity in perpetuity, one way or another.

These mechanisms appear to be designed to prevent proper price discovery - if the average worker can only afford £x to house themselves, then that is what houses have to cost. Adding a government scheme in the middle allows people to pretend houses are worth whatever they want - the government ensures that that £x supports many times that value in valuations.

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HOLA448

I think I do.....in the days of Thatcher, that was the argument that allowed people that had been social tenants for many years 20 or 30 paying social rent all those years, they were in effect sitting tenants that could pass from Father to Son.....they may have paid for the house in rent and by selling at a discount would give them something they had already paid or almost paid for, but would then have full responsibility of the care and maintenance, new roof, painting windows etc that was not cheap.

Cash into the coffers...that they fritted away on stuff they needed to pay for at the time, instead of investing in new social housing for a new generation of need. ;)

Yep, I think you're right...It would go like how shared equity works now...If your boiler/roof/plumbing whatever, packs up, then its your responsibility..A mate of mine works as a Plumber for a social housing provider..anything between 60% and 80% of his workload is fixing problems with new builds.

Edited by Dave Beans
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HOLA449

It'll just be another shared ownership-style scam, where a favoured demographic can kid themselves that they have obtained an 'affordable' home. The rest of us, less gullible or less electorally important, will be left at the mercy of the private market of fantasy asking prices. And I guarantee there'll be small print allowing some middleman to skim from the tenant's productivity in perpetuity, one way or another.

These mechanisms appear to be designed to prevent proper price discovery - if the average worker can only afford £x to house themselves, then that is what houses have to cost. Adding a government scheme in the middle allows people to pretend houses are worth whatever they want - the government ensures that that £x supports many times that value in valuations.

But then you've got Dave Beans point #5. If price is really is based on social rents then what you've got is a scheme for potentially large numbers of housing connecting back to price sanity.

Still, they've got a long way to persuade that they wouldn't feck it up with everybody from the taxpayer to the tenant somehow getting screwed over by developers...

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HOLA4410

But then you've got Dave Beans point #5. If price is really is based on social rents then what you've got is a scheme for potentially large numbers of housing connecting back to price sanity.

Still, they've got a long way to persuade that they wouldn't feck it up with everybody from the taxpayer to the tenant somehow getting screwed over by developers...

..although with shared equity, AFAIK, they use market rates to determine the price of the house...so would your rent cover less equity or would it cause the "rent" to move north? (I could image people who wouldn't qualify for a mortgage for example...no deposit/don't meet lending criteria, etc going for this)...

Edited by Dave Beans
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These mechanisms appear to be designed to prevent proper price discovery

+1 The entire 'recovery' is based on the holographic image being maintained by QE, ZIRP, Help to Buy ect. Any interruption in the flow of money into the projector would reveal the debt ridden wasteland the situation actually is.

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HOLA4414

Already happens under Right To Buy, and thanks to the Localism Bill I am now eligible to buy my Council flat at a 50% discount! Ain't I lucky!

So in a sense I've built equity because I'd get a 60k flat for half that.

Only snag is that back in 2008 they were going for less than 30k

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HOLA4415

Already happens under Right To Buy

Yep, this is just another innovative scheme to give publicly owned housing to a chosen few at a knockdown price.

If the state sold off its housing at market price it would have money to build more housing. By selling at a discount it reduces its own ability to supply housing, worsening the housing crisis.

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Lib Dem strategy chief Ryan Coetzee caught carrying draft file in Whitehall

"Caught" as in it was presented to the photographer to photograph.

They needn't have bothered as they'll be able to pick that stuff up for free after the election as just another pile of litter blowing along London's Embankment.

Edited by billybong
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