Jump to content
House Price Crash Forum
BalancedBear

Right-To-Buy Scandal. Homes Being Let To Hb Recipients

Recommended Posts

Going back about 10 years a friend of mine who had a young family got evicted and was classed as homeless.

Anyway the council put him in what was called a half way house which was an ex council house in a crappy part of town.

However the council were renting it on a long term lease for 1200GBP PCM whether the house was rented or now, which would have been 500GBP more than the market rate.

Id imagine if it was sold before the boom it would have been bought for about 30-40K.

Edited by Corruption

Share this post


Link to post
Share on other sites

Industry the World over is dispensing with the extra cost of middlemen.

Uk Housing Policy seems intent on bringing in more layers of middlemen.

Share this post


Link to post
Share on other sites

Almost as if BTL is only for the 'better offs'

Are established BTL getting rattled there is competition from the lower orders? Know your place!

Not that I agree that social housing should be sold off and used for BTL, but whether you can enforce any restrictions is another matter.

Share this post


Link to post
Share on other sites

I really did like this comment:

The results of this misguided policy are there to be seen (for those with eyes to see). Whole communities have been destroyed, right across London.

The beneficiaries of Thatcher's fire-sale quickly cashed-in their ill-gotten windfalls and ran to the outer fringes of civilisation with their fools gold. Now they languish in utter despair in windswept dumps like Clacton or Margate, bemoaning their fates and longing for the good old days when we all knew each other. They may well be slightly wealthier, but they aren't "better off" , and most hate their circumstances now.

And the irony is, once you leave London it's almost impossible to buy your way back in ! Your old council house is now occupied by yuppies who can afford them.

And the self-imposed exiles, alone and unloved in Clacton, cling to UKIP like drowning men clutching at straws (blaming everybody else for their plight, other than their own greedy selves).

I shouldn't say it, but I really do enjoy the schadenfreude!

The Mail made a great song and dance about "white flight" from working class areas of London. What they never really examined (or rather deliberately avoided) was RTB'ers selling their houses in those areas (as they got older/retired) to BTL'ers or immigrants and then moving to Southend-on-Sea or wherever because they could get a nicer house for the same money. Some probably are reading about London prices up xxx% and are livid thinking they'd have got £££ more if they had sold-up later*. So not surprising DM ignores this though as it probably wouldn't go down well with their readers (who moved on from reading The Sun when in their 20/30's to the Daily Mail in their 50/60's) being told it's your own stupid fault.

Forget about the chickens of the Blair/Brown era coming home to roost, the chickens of the Thatcher era have yet to fully come home to roost.

* People do think like that, I remember friends who bought around 2001/2 bumping into their vendor a year or two later who said they wish they hadn't sold the house to them when they did as they lost out on getting an extra £20-30k. :rolleyes:

Share this post


Link to post
Share on other sites

I really did like this comment:

The Mail made a great song and dance about "white flight" from working class areas of London. What they never really examined (or rather deliberately avoided) was RTB'ers selling their houses in those areas (as they got older/retired) to BTL'ers or immigrants and then moving to Southend-on-Sea or wherever because they could get a nicer house for the same money. Some probably are reading about London prices up xxx% and are livid thinking they'd have got £££ more if they had sold-up later*. So not surprising DM ignores this though as it probably wouldn't go down well with their readers (who moved on from reading The Sun when in their 20/30's to the Daily Mail in their 50/60's) being told it's your own stupid fault.

Forget about the chickens of the Blair/Brown era coming home to roost, the chickens of the Thatcher era have yet to fully come home to roost.

+1 Thatcher's fire sale ☺

Share this post


Link to post
Share on other sites

Going back about 10 years a friend of mine who had a young family got evicted and was classed as homeless.

Anyway the council put him in what was called a half way house which was an ex council house in a crappy part of town.

However the council were renting it on a long term lease for 1200GBP PCM whether the house was rented or now, which would have been 500GBP more than the market rate.

Id imagine if it was sold before the boom it would have been bought for about 30-40K.

This post sums up the sheer madness of selling off all the social housing stock and then renting most of it back (via HB) privately.

That decision by Thatcher must have cost this country a thousand times more than Brown's decision to sell all the gold by now.

Share this post


Link to post
Share on other sites

This post sums up the sheer madness of selling off all the social housing stock and then renting most of it back (via HB) privately.

That decision by Thatcher must have cost this country a thousand times more than Brown's decision to sell all the gold by now.

And the decision by every successive government to fail to address the shortage of social housing is worthy of mention.

Share this post


Link to post
Share on other sites

This post sums up the sheer madness of selling off all the social housing stock and then renting most of it back (via HB) privately.

That decision by Thatcher must have cost this country a thousand times more than Brown's decision to sell all the gold by now.

In 1985, Labour abandoned its opposition to the policy.

Share this post


Link to post
Share on other sites

Nothing new....this has been going on for years, cost taxpayers today an arm and a leg when it needn't have...... more evidence of short-termist politics and policies...add it to the slate, the future can pay.

Share this post


Link to post
Share on other sites

Almost as if BTL is only for the 'better offs'

Are established BTL getting rattled there is competition from the lower orders? Know your place!

There's a long tradition of lower-order landlords.

You don't suppose Rachman would've been demonised if he'd been an Establishment figure rather than a Jewish refugee from Poland?

Share this post


Link to post
Share on other sites

In 1985, Labour abandoned its opposition to the policy.

Right to Buy was Labour Party policy in the late 50's. Pre Harold Wilson in fact. Thatcher was originally opposed to it but was persuaded to steal it from Labour by then GLC leader Horace Cutler, who already had done.

Edited by aSecureTenant

Share this post


Link to post
Share on other sites

In 1985, Labour abandoned its opposition to the policy.

Wasn't that Right-To-Buy?

The issue isn't really that, it's failing to build any social housing to replace that sold off.

But yes... obviously Labour failed miserably to do anything about that as well.

Been a slippery slope since the Thatcher sell off, and really a much greater continuation of the worst parts of Thatcherism under Bliar and Brown than most recognise.

Share this post


Link to post
Share on other sites

And the decision by every successive government to fail to address the shortage of social housing is worthy of mention.

Absolutely spot on.

Labour becoming "New Labour" was the most damaging thing to ever happen to this country.

Had the Tories stayed in power in 1997 and a lot of these chickens come home to roost solely on their watch I think people would find it easier to spot the initial source of the HB boil.

Share this post


Link to post
Share on other sites

There's a long tradition of lower-order landlords.

You don't suppose Rachman would've been demonised if he'd been an Establishment figure rather than a Jewish refugee from Poland?

Have to declare an interest. I'm eligible to buy my flat, thanks to the Localism Bill.

Snag is this form of arbitrage isn't really available to me, not living in London, and because social rents now match market rents where I live.

Then again I might just be able to buy estimating that the mortgage interest would be half current social rents (at current low interest rates of course).

Presumably the other half of the social rent is to fund the ex Council jobsworths that run the ALMO

Edited by aSecureTenant

Share this post


Link to post
Share on other sites

Right to Buy was Labour Party policy in the late 50's. Pre Harold Wilson in fact. Thatcher was originally opposed to it but was persuaded to steal it from Labour by then GLC leader Horace Cutler, who already had done.

Except it wasn't a right to buy as I understand it, it was more of a right to sell, a tenant could ask to buy a property or the council could offer to sell it, they had no obligation to sell it to the tenant - BIG difference. In comparison to Thatcher's RTB sales weren't that common, there was no massive discount and the councils weren't banned from using to money to build new housing.

Share this post


Link to post
Share on other sites

Absolutely spot on.

Labour becoming "New Labour" was the most damaging thing to ever happen to this country.

Had the Tories stayed in power in 1997 and a lot of these chickens come home to roost solely on their watch I think people would find it easier to spot the initial source of the HB boil.

Had they not got into power maybe so many people wouldnt be quite so aware theyre 2 cheeks of the same ****.

As someone who was born mid 70s id only ever lived under a Tory govt and was told about the Utopia that Labour would create, i now look at the people (family members) who implied this as being not very bright.

Share this post


Link to post
Share on other sites

Had they not got into power maybe so many people wouldnt be quite so aware theyre 2 cheeks of the same ****.

As someone who was born mid 70s id only ever lived under a Tory govt and was told about the Utopia that Labour would create, i now look at the people (family members) who implied this as being not very bright.

I love the two cheeks analogy! ;)

And I suspect UKIP might turn out to be the a-hole itself too.

Share this post


Link to post
Share on other sites

1st comment:

The rents are not 'extortionate', they are what the market will bear.

Probably made by some vile BTLer who thinks they are gordon gekko 'owning' the free market. Little do they realize the 'market' is not free at all, but rigged by restrictive supply regulations and housing benefit pushing up yields.

Share this post


Link to post
Share on other sites

I really did like this comment:

The Mail made a great song and dance about "white flight" from working class areas of London. What they never really examined (or rather deliberately avoided) was RTB'ers selling their houses in those areas (as they got older/retired) to BTL'ers or immigrants and then moving to Southend-on-Sea or wherever because they could get a nicer house for the same money. Some probably are reading about London prices up xxx% and are livid thinking they'd have got £££ more if they had sold-up later*. So not surprising DM ignores this though as it probably wouldn't go down well with their readers (who moved on from reading The Sun when in their 20/30's to the Daily Mail in their 50/60's) being told it's your own stupid fault.

Forget about the chickens of the Blair/Brown era coming home to roost, the chickens of the Thatcher era have yet to fully come home to roost.

* People do think like that, I remember friends who bought around 2001/2 bumping into their vendor a year or two later who said they wish they hadn't sold the house to them when they did as they lost out on getting an extra £20-30k. :rolleyes:

meh, maybe in London. But I think white flight is still real in other parts of the country where they arent sitting on a housing pot of gold. Places like Birmingham, Slough, Luton, Bradford, places where white brits make up 60% of the population or less are losing massive numbers of white-british inhabitants, while places like Lincoln, york or Norwich (or virtually any smaller commuter town), places that are still above, at or near 90% white british arent seeing a decline.

nor did white flight in London, if you want to call it that, start with the housing bubble...the capital lost almost half a million white brits between 1991 and 2001 as well...and I doubt the houses in the areas they were vacating (mainly the outer eastern boroughs) in the mid 90s were of sufficiently higher values than places like basildon or chelmsford to really be the sole or main factor. Maybe its magnified the effect, but I still think people in London are leaving because they dont feel welcome anymore/dont like the demographic changes rather than the money.

Share this post


Link to post
Share on other sites

1st comment:

The rents are not 'extortionate', they are what the market will bear.

Probably made by some vile BTLer who thinks they are gordon gekko 'owning' the free market. Little do they realize the 'market' is not free at all, but rigged by restrictive supply regulations and housing benefit pushing up yields.

They fail to spot it's failing to work in a proper free market manner where competition drives prices down (I'd go as far as to say the new entrant with the highest mortgage repayments sets what the market will bear).

If an easyjet style operator hit the market (either building its own properties or buying whole developments off-plan) and undercutting the amateur BTL it would do what the self-service supermarkets did to the cornershop. Even better Tesco, ASDA, Sainsburys start using their landbanks to build properties to rent, Tesco alone could apparently build 15,000 homes, just a few 100 or 1000 would send shock-waves through the market.

Share this post


Link to post
Share on other sites

I really did like this comment:

The Mail made a great song and dance about "white flight" from working class areas of London. What they never really examined (or rather deliberately avoided) was RTB'ers selling their houses in those areas (as they got older/retired) to BTL'ers or immigrants and then moving to Southend-on-Sea or wherever because they could get a nicer house for the same money. Some probably are reading about London prices up xxx% and are livid thinking they'd have got £££ more if they had sold-up later*. So not surprising DM ignores this though as it probably wouldn't go down well with their readers (who moved on from reading The Sun when in their 20/30's to the Daily Mail in their 50/60's) being told it's your own stupid fault.

Forget about the chickens of the Blair/Brown era coming home to roost, the chickens of the Thatcher era have yet to fully come home to roost.

* People do think like that, I remember friends who bought around 2001/2 bumping into their vendor a year or two later who said they wish they hadn't sold the house to them when they did as they lost out on getting an extra £20-30k. :rolleyes:

Seems like UKIP support has two elements: Old Labour + Thatcherites who got screwed by Thatcherism.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   209 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.