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olde guto

1% Cut In Social Rents = 14,000 Fewer Afforable Home Obr

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So as a council tenant I`ve had to suffer rent increases of 7% a year ......year after year!!

Mean while councils and particularly HAs have lived high of the hog, outrageous salaries especially at the top.

So now that Osborne seems to have worked this out they`re bleating like lambs! But a 1% reduction in HB should mean an expansion in council house building?

If a one % rent reduction results in 27,000 fewer houses being built (according to NHF scum) then what happened to our rents of a few years ago? Surely they could have built 150,000 houses per year !?!

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Or land prices fall a little to adjust...

Why does the building industry think prices should in their industry always rise?

Oh, thats right, they have a habit of loading up on land when prices are high.

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But they are allowing HAs to keep all money raised from increasing rents for higher earners. Surely this could be recycled into building more housing?

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But they are allowing HAs to keep all money raised from increasing rents for higher earners. Surely this could be recycled into building more housing?

Except net they're not really. There's the right to buy them via expropriating HA properties at a discount, and increased rents on LA housing goes to the exchequer. The financing breakdown shows a significant inflow in the first year which then drops and settles at a lower amount, which one has to assume is because they expect large numbers to be acquired straight up.

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From the link it seems to be a 1% cut for 4 years so the 14,000 less affordable houses seems to be about 3,500 less a year (if it's 27,000 fewer then it's about 7000 fewer a year)?

It would be a surprise if these days councils build anywhere near 3,500 a year to start with but total social housing apparently amounts to perhaps about 30,000? a year so they're going to cut it by about 10%? (the percentage taking some new house building in the private sector into account as well).

It's the same principle the councils seem to use. Most increases in funding seem to be typically trousered by the executives and their cronies but any cuts are shouldered by everyone else.

Whatever the exact figures are the predicted consequence of a 1% cut in HB seems to be out of all proportion.

Edited by billybong

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Yes, when our council tried to transfer their housing stock to a selected group of troughers things didn't go well.

We (tenants) voted against by 76%!!

They were just stunned!

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