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oatbake

Local council buying up unsold newbuild properties

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http://www.cravenherald.co.uk/news/16597946.council-agrees-to-buy-affordable-homes-on-skiptons-elsey-croft-development/?ref=mc&lp=2

So, the developers can't sell some of their overpriced homes, so instead of the market forcing them to lower the price until they sell, they just ask the good old council to jump in and pick up the tab?

Something about this absolutely stinks

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54 minutes ago, oatbake said:

http://www.cravenherald.co.uk/news/16597946.council-agrees-to-buy-affordable-homes-on-skiptons-elsey-croft-development/?ref=mc&lp=2

So, the developers can't sell some of their overpriced homes, so instead of the market forcing them to lower the price until they sell, they just ask the good old council to jump in and pick up the tab?

Something about this absolutely stinks

You're assuming that the council are paying the list price for these.

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48 minutes ago, Errol said:

Do some freedom of information requests. Get digging.

I will certainly be complaining. It's scandalous. 

Any pointers on what to ask for with an FoI request? I;ve not done one before. I can't see how they can possibly defend this.

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2 minutes ago, Ghostly said:

You're assuming that the council are paying the list price for these.

That's true. That is something I can ask with my FoI request for starters 🙂

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7 minutes ago, oatbake said:

I will certainly be complaining. It's scandalous. 

Any pointers on what to ask for with an FoI request? I;ve not done one before. I can't see how they can possibly defend this.

The Council website will probably have a Freedom of Information contact.  Just write to them and say you'd like information on the cost of the properties, etc.  One get out that they may have though is that they will say it is 'commercially sensitive' information and refuse to release it.

Another thing you could ask is how many new build properties they've bought from developers and what they are used for.

EDIT: Here: https://www.cravendc.gov.uk/data-and-transparency/freedom-of-information/

Edited by Ghostly

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If as others have suggested, they are buying these at a massive mark down, then no problem, if on the other hand they paid the list price or close to it, I believe the correct term is 🤦

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I would prefer it if the council just bought the houses just to rent out (BUT exclude them from Right To Buy) rather than add fuel to the fire of those 'not so affordable' shared ownership schemes. :rolleyes:

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21 hours ago, MattW said:

I would prefer it if the council just bought the houses just to rent out (BUT exclude them from Right To Buy) rather than add fuel to the fire of those 'not so affordable' shared ownership schemes. :rolleyes:

Absolutely agree. I have never understood the right to buy nonsense.

Edited by Switch625

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In my other threads ive been learning about social housing in new build estates. Its scary.  Pay 500k for an exec home only to find the council are moving in some benefits family 2 doors away.  Fook in ell...that's a recipe for disaster. Its just become part council estate. Why would you? No control over who they put in there. Happened to a guy I know, along came the clients of the drug pushing tennant 

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11 hours ago, Ghostly said:

You're assuming that the council are paying the list price for these.

Given that Local Authorities operate on a heady mix of incompetence and corruption I genuinely wouldn't be at all surprised if they're actually paying OVER list for them.

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4 minutes ago, nome said:
11 hours ago, Ghostly said:

You're assuming that the council are paying the list price for these.

Given that Local Authorities operate on a heady mix of incompetence and corruption I genuinely wouldn't be at all surprised if they're actually paying OVER list for them.

 

This. In fact, I'm sure there was a case, posted on another thread on here, of another council buying up empty new builds at list price.

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11 hours ago, MattW said:

I would prefer it if the council just bought the houses just to rent out (BUT exclude them from Right To Buy) rather than add fuel to the fire of those 'not so affordable' shared ownership schemes. :rolleyes:

Regarding affordable / shared ownership homes they are likely to be following the regulator's guidance and this may also attract some funding for them. 

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With my dodgy maths, according to this

https://spacehomes.co.uk/wp-content/uploads/2018/03/2-Bed.pdf

I make 100% 215,000 for a 2-bed, that's the slightly more expensive of the options, the others a grand per 35% less. Even if they are buying at a mark-down, it would have to be one hell of a discount to beat something like this

https://www.zoopla.co.uk/for-sale/details/48122349?search_identifier=f629959cc30a51faa29d93f65687a001

or this

https://www.zoopla.co.uk/for-sale/details/41821891?search_identifier=f629959cc30a51faa29d93f65687a001

or any of the other really nice places for sale for well under 200k in central skipton. Not being overly suspicious, let's face it, what's missing with those lovely old properties is a bit of palm-grease from a developer. Can anyone think of any other explanation? If the project now is to buy places on the private market and make them available for shared ownership, why buy only new?

Edit - where's the emoticon for total bloody outrage fatigue?

Edited by North London Rent Girl

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17 hours ago, wsn03 said:

In my other threads ive been learning about social housing in new build estates. Its scary.  Pay 500k for an exec home only to find the council are moving in some benefits family 2 doors away.  Fook in ell...that's a recipe for disaster. Its just become part council estate. Why would you? No control over who they put in there. Happened to a guy I know, along came the clients of the drug pushing tennant 

My daughters friend  paid £200k for a 4 bed shoe box in Darlington with HTB.I said why didnt she buy one of the big 3 beds for £80k near her mum.She said she didnt want to live on a council estate.Where her mum lives 86% of the houses have been bought.Where she has bought 20% are "affordable" ie sold to a housing association.Her next door house is now let to a family i know,top draw scroungers.The one over the road has just been given to some recent middle eastern arrivals.She hasnt quite clicked yet they are living on a new council estate.I doubt il see a worse investment.Negative equity forever i suspect and trapped.

Edited by durhamborn

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On 31/08/2018 at 17:36, durhamborn said:

My daughters friend  paid £200k for a 4 bed shoe box in Darlington with HTB.I said why didnt she buy one of the big 3 beds for £80k near her mum.She said she didnt want to live on a council estate.Where her mum lives 86% of the houses have been bought.Where she has bought 20% are "affordable" ie sold to a housing association.Her next door house is now let to a family i know,top draw scroungers.The one over the road has just been given to some recent middle eastern arrivals.She hasnt quite clicked yet they are living on a new council estate.I doubt il see a worse investment.Negative equity forever i suspect and trapped.

I DO believe you but this is almost unbelievable, how can this be? Unless the estate is known for violence, drugs and so on, nothing wrong with a council estate, I'd jump at the chance if I was offered a council house, dream on. I take your point that the new estate is going to be populated by some of the population would would once have been housed on council estates proper so her objection to living on a council estate is even sillier. That's happening in a new town near my mum and dad in devon but it was alway the plan to sell lots of the town to local authorities - I seem to remember my mum saying that people would be coming in from as far afield as Birmingham. Take bribes from a builder, swing the tender, get a load of cardboard rabbit-hutches thrown up and put on the market for stupid prices then buy them. Magic.

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