Jump to content
House Price Crash Forum
Sign in to follow this  
Fairyland

David Cameron To Revive Right To Buy In Queen's Speech

Recommended Posts

http://www.telegraph.co.uk/news/politics/david-cameron/11628914/David-Cameron-to-revive-right-to-buy-in-Queens-Speech.htmlhttp://www.telegraph.co.uk/news/politics/david-cameron/11628914/David-Cameron-to-revive-right-to-buy-in-Queens-Speech.html

David Cameron will this week push ahead with plans to revive the right to buy scheme as one of the world's biggest property agents warns that rising house prices could mean people cannot afford to "exist" in parts of Britain.

Mr Cameron will use the Queen's Speech to unveil plans to help more than 1million people buy their first homes by extending the right to buy scheme to housing association tenants.

The government's housing bill comes as JLL, the property group, warns that house prices will rise by more than a fifth over the course of this Parliament as the property market recovers.

After a six month slowdown JLL warned that the property market is likely to heat up again this Autumn and that house builders are likely to miss targets to build 240,0000 homes a year.

Adam Challis, the head of residential research at JLL, said that more radical intervention is needed to increase the supply of homes.

He said: "If we don't see growth in the supply of homes there'll be a long term squeeze on affordability and a direct impact on the economy. If there is no growth in supply it will become unaffordable to exist here [in London].

"A failure to address elevated house price inflation is the most pressing challenge facing Government and the industry. The housebuilding industry is not set up to get anywhere close to housing targets and even radical solutions would take several years to improve the current state of affairs."

How many houses are we building?
0100k200k300k400k500k1969-701980-811991-922002-032013-14Private companies:157kHousing associations:38.2kCouncils:3.01kAll sources:198k1995-96Private companiesHousing associationsCouncilsAll sources
Powered by Factmint
ONS

The Conservatives will use the Queen's Speech to extend the right to buy scheme, which was introduced by the late Baroness Thatcher when she was Prime Minister, to 1.3million housing association tenants.

The Tories will also confirm plans to build more than 200,000 "starter homes" for first-time buyers which will be sold at a 20 per cent discount to people under the age of 40.

Under the scheme, houses will be built on brownfield land and reserved for sale only to young people buying their first homes.The discount will be offered on homes up to £250,000 outside London and £450,000 inside London.

The housing bill will also include an extension of the "right to build" scheme, which makes more land available for people who want to build their own homes.

Thatcher-Council-H_2531736b.jpgMargaret Thatcher hands over the keys of the first right to buy house (PAS)

The right to buy scheme is likely to prove the most contentious policy, amid warnings that it could lead to a shortage of social housing.

Under the Tory pledge, tenants in houses will get a 35 per cent discount on their properties, while tenants in flats will get a 50 per cent discount.

The right to by extension will be funded by forcing councils to sell off their most valuable properties when they become empty, a move that will up top £4.5billion a year.

Councils will be expected to use the money from the sales to replace properties sold to tenants.

However, the Institute for Fiscal Studies has cast doubt on whether this will be possible and warned it could lead to wider gaps between the rich and the poor.

Share this post


Link to post
Share on other sites

What's this figure of "helping" 1 million people to buy their first home? Is that assuming that all HA tenants will buy their property under RTB? I'm pretty sure that only a fraction of them can afford to do it even with the discount.

Over the next 5 years something like 3 million homeowners are going to die of old age, I'd be surprised if even half of them are replaced by FTBs coming in at the younger end of the age pyramid.

Share this post


Link to post
Share on other sites

One analyst calculated the cost of this bribe would be £10-12BN on top of the £12BN they need to cut in welfare. Doubtless "a price worth paying" to destroy social housing.

Share this post


Link to post
Share on other sites

It's disgusting is what it is.

Where's my 50% discount on a decent-standard flat?

20% off a newbuild cardboard box which started life at least 50% above peak bubble prices is just not comparable. And if they drag this out past 2020 I'll be over 40 anyway.

Housing Association tenants already have secure housing. They don't need any more help.

Share this post


Link to post
Share on other sites

If 3 million homeowners die of old, will immigrants take up these homes?

No, immigrants working for low UK wages are just as priced out as non-immigrants working for low UK wages.

Share this post


Link to post
Share on other sites

Right to build sounds ok, if I am being honest as at least you can plan a family home and build some value into your home. You could buy enough land for a bit more than a shoe box.

Share this post


Link to post
Share on other sites

Right to build sounds ok, if I am being honest as at least you can plan a family home and build some value into your home. You could buy enough land for a bit more than a shoe box.

I'm off to a meeting about this at my local council next week. I shall report back.

Information about the scheme is "back of a postage stamp" at best at the moment. They've come up with a title but no policy behind it.

At the moment interested people have the right to build on land identified by the council purchased at commercial rates.

I've yet to see if the council have identified any land and if they had how they ensure that they get commercial rates for it if they don't advertise it in the normal manner.

If we have to give our opinions on how it should work I'll be suggesting they put a no sale for 5 years clause in to ensure it isn't all "snapped up by savvy investors"

Share this post


Link to post
Share on other sites

I'm off to a meeting about this at my local council next week. I shall report back.

Information about the scheme is "back of a postage stamp" at best at the moment. They've come up with a title but no policy behind it.

At the moment interested people have the right to build on land identified by the council purchased at commercial rates.

I've yet to see if the council have identified any land and if they had how they ensure that they get commercial rates for it if they don't advertise it in the normal manner.

If we have to give our opinions on how it should work I'll be suggesting they put a no sale for 5 years clause in to ensure it isn't all "snapped up by savvy investors"

I wouldn't mind adding longer as it genuinely gives a family the chance to build a family home, or at the least a home they can plan for the future in.

Currently, I think you can only apply for it if you have lived in the area for over 3 years and I am presuming it means only one plot a person.

From what I understand of it, you can sue them if they do not make land available.

Share this post


Link to post
Share on other sites

"The Tories will also confirm plans to build more than 200,000 "starter homes" for first-time buyers which will be sold at a 20 per cent discount to people under the age of 40."

WTF IS THAT ABOUT !!!!!!

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Yes, the council would want 240,000 for our 2 bedroom place.

On the other hand if they gave us a 78,000 discount we`d be able to buy and build something using the wife`s `walking around money!` (around 150,000)

And as if by magic we`d clear out and a `hardworking` would be able to move in.

Share this post


Link to post
Share on other sites

I thought HA's were private companies or charities? So the Conservatives want to be able to sell private property at a discount? If so, why can't they extend it to private rented properties :lol:?

Share this post


Link to post
Share on other sites

You never know, all buyers could soon be buying at a discount, the full real price of 10 years ago before any of today's discounters have made much of a dent in their debt.

Share this post


Link to post
Share on other sites

So Today is the day. BBC did not mention anything about the 50% flats discount and 35% houses discount. They did mention about the 20% young buyers discount. What about those first time buyers who are over 40 years. This is age discrimination.

Share this post


Link to post
Share on other sites

I thought HA's were private companies or charities? So the Conservatives want to be able to sell private property at a discount? If so, why can't they extend it to private rented properties :lol:?

Exactly. The tory government is price fixing and force selling on privately owned property!! This sets a useful precedent when a left-wing government decides to force sell second homes to the current tenant at a 50% discount. It is no different.

I thought Cameron had quietly dropped his idiot idea early in the election when it was clear HAs would challenge this in court. The guy is a loon.

Share this post


Link to post
Share on other sites

Exactly. The tory government is price fixing and force selling on privately owned property!! This sets a useful precedent when a left-wing government decides to force sell second homes to the current tenant at a 50% discount. It is no different.

I thought Cameron had quietly dropped his idiot idea early in the election when it was clear HAs would challenge this in court. The guy is a loon.

In a world where HTB, RTB and privatised housing benefits are considered helpful, wouldn't surprise me if they did RTB for the private sector. Except with the government obviously making up the difference to the landlord. Compulsory purchase for some hard-working families at premium prices, to be recycled into ever more premium propped prices.

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
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   15 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.