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BBC - Private rents 'propped up' by taxpayers

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Housing money wasted 'propping up rents'

Taxpayers' money is being wasted on "propping up rents" in a "failing housing market", a report says.
The National Housing Federation report highlights how money spent on housing benefit rose from £16.6bn in the mid-1990s to £25.1bn in 2015-16.
It added that since 2011, no government money has been made available to build homes in England for low paid people to rent.
The government said building more homes was its absolute priority.
A Department for Communities and Local Government (DCLG) spokesman said it was continuing to work closely with the sector.
But the report from the federation, which represents housing associations and social landlords, says housing someone in a private rented property costs £21 a week more than housing them in a social rent property, on average.

Its chief executive David Orr said this was "poor value for the taxpayer" and had "a knock-on effect, with everyone struggling to rent or buy".
"We know we need more, better quality social housing. And yet, rather than putting public money into building the homes we need, we are propping up rents in a failing market."
The country could do better, he said, as he prepared for his organisation's annual conference in Birmingham.
He added that he thought that Prime Minister Theresa May was right to say, in the wake of the Grenfell Tower fire, that social housing had been neglected and needed attention.
After this tragedy, the crisis in social housing could no longer be ignored, he said.
"The government must be bold and make a break with the past by making money available to build genuinely affordable homes," Mr Orr said.

The report pointed out that after the government decided to halt the funding of social rented housing in 2011, the building of such properties fell from 36,000 to 3,000 the next year.
This was despite the fact that there are more than a million families on housing waiting lists, the report said.
The report concluded: "Not only is it more expensive to house someone in the private rented sector than social housing, but none of that money increases the supply of new homes.
"Social landlords do reinvest in new homes, building a third of all new homes last year including for social rent from their own funds, but the same does not happen in the private rented sector."
A DCLG spokesman said: "We introduced Affordable Rent in 2012 to maximise government investment and build more homes for below market rent.
"We've already delivered nearly 333,000 affordable homes since 2010 and have announced an additional £1.4bn for our Affordable Homes Programme, increasing the total investment to £7.1bn."
Affordable rented housing is defined as 80% of the market rent, while social rent is defined as 60% of the market rent.

http://www.bbc.co.uk/news/education-41309316

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There's no difference between spending money on private rents or public rents - LHA aer to all means private companies.

The problem is subbing non working age families.

Align HB to local private sector wages.

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14 minutes ago, TheCountOfNowhere said:

Nearly spat out my corn flakes !!!

Yup, various breakfast products anointing the walls across the land as we read the news, Toys R us going under, Carney all but admitting that inflation is out of control and the FCA this morning urging action over credit growth at nearly 10% per annum at the same time that wages are falling by 0.4% the penny finally drops in the main stream media and the herd panics!

https://www.theguardian.com/business/2017/sep/18/britain-debt-timebomb-fca-chief-crisis?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+main+NEW+H+categories&utm_term=244194&subid=23537249&CMP=EMCNEWEML6619I2

http://www.bbc.co.uk/news/business-41316205

http://www.bbc.co.uk/news/business-41307167

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1 hour ago, Switch625 said:

Yup, various breakfast products anointing the walls across the land as we read the news, Toys R us going under, Carney all but admitting that inflation is out of control and the FCA this morning urging action over credit growth at nearly 10% per annum at the same time that wages are falling by 0.4% the penny finally drops in the main stream media and the herd panics!

https://www.theguardian.com/business/2017/sep/18/britain-debt-timebomb-fca-chief-crisis?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+main+NEW+H+categories&utm_term=244194&subid=23537249&CMP=EMCNEWEML6619I2

http://www.bbc.co.uk/news/business-41316205

http://www.bbc.co.uk/news/business-41307167

10% per annum.

Thats the same amount that that moron Brown managed when he as embarking on the most massive credit bubble the UK had ever seen as well as pretty much doubling public spend.

That genius managed to get ~3% GDP growth whilst  debt/leverage was running at ~10%. Idiot.

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2 minutes ago, TheCountOfNowhere said:

people should certainly be educating their family about this madness

Education = good.

Family = good.

So, social housing must be good?

Align incomes to private sector wages.

Cap hosing benefit at ~30% of local median wage.

Throw out any non UK citizen from social housing.

Sorted.

 

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6 minutes ago, spyguy said:

Education = good.

Family = good.

So, social housing must be good?

Align incomes to private sector wages.

Cap hosing benefit at ~30% of local median wage.

Throw out any non UK citizen from social housing.

Sorted.

 

You and I would do that...but the policiticans...no chance.

Too many VIs in control.  No one willing or able to stand up to they.  

Collapse and/or social unrest inevitable.

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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