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Rocket Scientists At Work: Affordable Housing Reduces Hb

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Or if we spent £12b on building cheap houses instead of subsidising over-priced ones. Perverse, isn't it?

Edited by tinker

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Or if we spent £12b on building cheap houses

As we've done again and again since 1945, leading directly to today's poor supply, and the high price of scarcity value for anything half-decent.

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I am starting to wonder if these reports are just written to be ignored.

http://www.theguardian.com/housing-network/2015/jun/19/experts-social-housing-investment-lower-welfare-bill

the affordable housing; build and sold by builders; is the most stupid idea ever; as it is one of the most expensive social housing in Europe of all times

how it should be done:

- council provides free land

- builder is contracted and paid for only the building costs; £30k for flat; £60k for small terrace; nothing more

- council owns the property and manages it accordingly

- we would not need housing benefit with this scheme at all as the mortgage payments on these would be so low

Edited by Damik

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the affordable housing; build and sold by builders; is the most stupid idea ever; as it is one of the most expensive social housing in Europe of all times

how it should be done:

- council provides free land

- builder is contracted and paid for only the building costs; £30k for flat; £60k for small terrace; nothing more

- council owns the property and manages it accordingly

- we would not need housing benefit with this scheme at all as the mortgage payments on these would be so low

True,the problem though isnt the mortgage bill.Its the huge expense of the running of the estate.ALMOS are even worse and now control most council housing.Their housing stock was paid off mostly decades ago.Our local one now tends to buy up ex council houses when they come up.A friend of mine bought for £13k MEWed up to £65k in the boom years for holidays,cars etc and just sold back to the ALMO for £67k.In affect the ALMO paid £65k for a house they sold at £13k.

When the council ran the stock you could rent a 3 bed for around £36 a week including water.They are now around £90.The rent rise is something like RPI+0.5%+£2.00 a year.Compounded thats way higher than local wages go up.

Alongside that the local ALMO wins lots of awards for being such a great place to work.Flexi time,pensions,wage rates,sick pay,promotion etc etc.I have a feeling these might be a target for housing benefit cuts soon.

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I seem to remember that under the last government there was a policy of forcing social rents up to near 'market levels', hence more expensive housing and thus the benefits bill. Short-term it might have allowed renovations and the expansion of ALMOs in terms of social responsibility, non-jobs and executive pay, however, it is neither wise (low rents keep economic cost down) and now housing remains ridiculously expensive because the low cost market has been decimated.

You wonder who is behind these decision advising politicians. Who benefits? Who is giving the advice?

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Durhamborn...

They seem to have changed to a slightly different system here in relation to our council rents, we are getting +1% plus CPI ....hopefully down to zero in September!

So I get 40p per week increase in benefit while the wife get nothing (NHS slave!)

Sadly I`m looking forward to retirement...

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Durhamborn...

They seem to have changed to a slightly different system here in relation to our council rents, we are getting +1% plus CPI ....hopefully down to zero in September!

So I get 40p per week increase in benefit while the wife get nothing (NHS slave!)

Sadly I`m looking forward to retirement...

Maybe they are now that close to "market rents" they have had to slow down in your area.Even with a CPI+1% link though it will see rents go up faster than local wages i would expect.We must be getting close in the north east.Social rents are now roughly in line with private rents for similar properties.

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Yes and maybe you`re talking about Almo`s where as I`m talking council houses which are being bought by local authorities over 30 years ?

Maybe central government is not quite so keen on ripping off tenants as they once were? Particularly if £5 rent increase means £5 cuts elsewhere....

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True,the problem though isnt the mortgage bill.Its the huge expense of the running of the estate.ALMOS are even worse and now control most council housing.Their housing stock was paid off mostly decades ago.Our local one now tends to buy up ex council houses when they come up.A friend of mine bought for £13k MEWed up to £65k in the boom years for holidays,cars etc and just sold back to the ALMO for £67k.In affect the ALMO paid £65k for a house they sold at £13k.

When the council ran the stock you could rent a 3 bed for around £36 a week including water.They are now around £90.The rent rise is something like RPI+0.5%+£2.00 a year.Compounded thats way higher than local wages go up.

Alongside that the local ALMO wins lots of awards for being such a great place to work.Flexi time,pensions,wage rates,sick pay,promotion etc etc.I have a feeling these might be a target for housing benefit cuts soon.

I missed that ALMO reference in the article. Little did I know that there'd be such Vested Interests in favour of building social housing !

Got to say though, the running of these estates is important, but of secondary importance. There is an ongoing separate debate being had on public vs private and all the weird and wonderful shades in between, but I think the deleterious impact on the overall economy of ballooning housing costs are more pressing. Not to mention the human costs.

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Hang on - SIX BILLION POUNDS!?!?!! Are they rebuilding the House of Parliament out of solid Platinum or something? Whoever booked these workmen could do with going on "Don't get Done, Get Dom".

I'd be surprised but who really knows at this stage ? Did a quick look and others talking £2-3bn...

As a comparison, going by this:

http://www.independent.co.uk/news/uk/politics/generalelection/housing-benefit-bill-rose-by-24billion-under-coalition-as-labour-claim-new-homes-needed-10108977.html

The HB bill is circa £25bn, yearly. If you take £250,000 as an average housing unit cost thats the cost of building 100,000 houses yearly - or rebuilding 10 parliaments!

Of course that number is probably wildly pessimistic - the average build cost would be a lot less.

So you could argue building an extra 100,000 new housing units/year and simply giving them away would be cheaper than the current system.

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True,the problem though isnt the mortgage bill.Its the huge expense of the running of the estate.ALMOS are even worse and now control most council housing.Their housing stock was paid off mostly decades ago.Our local one now tends to buy up ex council houses when they come up.A friend of mine bought for £13k MEWed up to £65k in the boom years for holidays,cars etc and just sold back to the ALMO for £67k.In affect the ALMO paid £65k for a house they sold at £13k.

When the council ran the stock you could rent a 3 bed for around £36 a week including water.They are now around £90.The rent rise is something like RPI+0.5%+£2.00 a year.Compounded thats way higher than local wages go up.

Alongside that the local ALMO wins lots of awards for being such a great place to work.Flexi time,pensions,wage rates,sick pay,promotion etc etc.I have a feeling these might be a target for housing benefit cuts soon.

Can't keep putting the rent up either. Or the people who they are intended for won't be able to afford them.

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Just put HB up. Isn't that what we've been doing? The snake is eating its tail.

Or just cut Housing Benefit as is repeatedly suggested. I guess thats the equivalent of biting off your tail so you don't have to worry about it.

One great thing about Housing Benefit is that its a very tangible and simple metric that indicates the unfolding disaster of hpi.

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