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Foobar

Housing Associations Do They Actually Help Anyone?

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Browsing through wrongmove I have come across this:

http://www.rightmove.co.uk/viewdetails-627...a_n=15&tr_t=buy

Plot 235 is a eighth floor two bedroom flat available at 30% - £71,250 based on full value £237,500

Can anyone tell me how this provides value to anyone?

1) The public have effectively paid for 'luxury' homes as 'affordable' housing.

2) The key worker who part buys is 'helped' into a financially dubious situation. How much rent must they pay on the other 70%; what value is 30% of an overpriced property that couldn't sell on the private market?

The only person to benefit as I see it, is the developer: who breathes a sigh of relief and then laughs all the way to the bank. I'm sure there are decent housing associations, but I have to question one that buys luxury housing under the guise of making it affordable housing.

I've seen these flats built and struggle to sell, it seems they have gone the way of many other developments and are now being bought up by housing associations. Personally I think this smells.

Don't get me wrong I am not against paying taxes towards social housing (and supporting housing associations) and that key workers should have a decent place to live. But these flats were never intended to be key worker housing (as far as I know) and have been strongly marketed as 'lifestyle' apartments for the affluent. The developer obviously hasn't sold them and has used their 'ingenuity' shall we say to get rid of them.

Somebody shoot me down, tell me I'm wrong, tell me this is a good use of public money that we aren't all being conned?

Edited by Foobar

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I remember looking at something similar in our area.

With the mortgage, the rent payment AND the hefty service charges the payments per month came up to a hefty £650 pm for something like a 25% share. How you save money to buy more equity I am not sure given that domestic fuel bills and council tax alone add up to more than a second mortgage.

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Just discovered the Hyde Housing Association or its sister/subsidary has bought 34 of these flats.

http://www.inplace.co.uk/showproperty.asp?pid=304

How does the money flow from the councils to the housing associations? Does the council buy the flat and then sell it to the HA at a discount?

Assuming that the situation is something like that ...

Aren't councils meant to be open about their finances. Couldn't you as, I presume, a council tax payer ask the council how much they have been paying out for these properties. If they have been wasting public money, then it should be possible to complain. And perhaps kick up a fuss.

Billy Shears

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The properties are funded by the Developer and the housing corporation which in turn is funded by the taxpayer.

In answer to the question Housing Associations Do they help anyone, well the answer is yes.

THEY HELP THEMSELVES and if you look at the jobs in the guardian you will see how.

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Hey Foobar. If your name refers to the housing market shouldn't it be Fubar? :unsure:

It's an indirect way of referring to the same thing, seen quite alot if you read O'Reilly (computing) technical books. I think I've just given my profession away. :)

How does the money flow from the councils to the housing associations? Does the council buy the flat and then sell it to the HA at a discount?

Assuming that the situation is something like that ...

Aren't councils meant to be open about their finances. Couldn't you as, I presume, a council tax payer ask the council how much they have been paying out for these properties. If they have been wasting public money, then it should be possible to complain. And perhaps kick up a fuss.

Billy Shears

I'm investigating this one, from previous reading I think the money initially flows from dear old John Prescott.

This then goes to the Housing Corporation and from there out to housing associations (not sure though).

The Housing Corp is accountable to parliament http://www.housingcorp.gov.uk/server/show/nav.371

So there is a path to highlight concerns, I think if there is any substance to what I'm saying it deserves questions in parliament so I'll be writing to my MP. :)

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Two Jags Prescott is partly responsible. He made it law that developers had to include a certain percentage (25%) I think of affordable housing on all developments in London (I think) in order to get planning permission.

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The properties are funded by the Developer and the housing corporation which in turn is funded by the taxpayer.

In answer to the question Housing Associations Do they help anyone, well the answer is yes.

THEY HELP THEMSELVES and if you look at the jobs in the guardian you will see how.

Let's get some evidence together and make a stand.

This practice if real, is something that would certainly prop up house price indexes. So we could justifiably kill two birds with one stone, better use of tax money and expose the fact that house prices have been propped up with public money and that they aren't as high as they make out to be.

Two Jags Prescott is partly responsible. He made it law that developers had to include a certain percentage (25%) I think of affordable housing on all developments in London (I think) in order to get planning permission.

Do you know when he passed this law? Can you include a link?

Thanks

Foobar.

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http://www.islington.gov.uk/Environment/Pl...icy/UDP/841.asp

As a starting point look at SPG doc.

http://society.guardian.co.uk/governinglon...,741602,00.html

Looks like KL wanted 50% per cent.

What I do know that some planning applications have been jeopardised, with developer's threatening to pull out of schemes in London but where they did not meet the 25%, planning was refused. This has happened in Wandsworth. If I remember correctly, JP or KL's office pulled in an application because it did not meet the criteria.

Edited by Buffer Bear

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I find it unfair surely that in areas where houses have been demolished for regeneration under schemes such as Pathfinder, homeowners whose houses were being demolished under compulsory purchase were promised new affordable homes in return. This is not so and the houses being developed in the place of the demolished homes were well out of reach of these homeowners whose compulsory purchase offers were usually below market value. To afford a replacement property they are being offered for example up to 50% equity and rent on the other half. This seems very wrong to me.

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I find it unfair surely that in areas where houses have been demolished for regeneration under schemes such as Pathfinder, homeowners whose houses were being demolished under compulsory purchase were promised new affordable homes in return. This is not so and the houses being developed in the place of the demolished homes were well out of reach of these homeowners whose compulsory purchase offers were usually below market value. To afford a replacement property they are being offered for example up to 50% equity and rent on the other half. This seems very wrong to me.

Have you got actual examples of this? That's terrible, can you imagine? I would be fuming mad.

http://www.odpm.gov.uk/index.asp?id=1144410

DETR Circular 06/98: Planning and Affordable Housing

More good stuff thanks.

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  • 301 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% +
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      • Even
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      • up 5%



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