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Council Interest Free Loan


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I am not sure of the whole history but pretty much this is what I understood.

The East Lothian Council (just beside Edinburgh) has come with a plan to help ftb's to get into the ladder.

Apparently they intend to give interest free loans of up to £30000 to people who are on their waiting list for accommodation.

These people can use that money as a deposit or whatever they see fit in order to purchase a house.

*mind you we are in Scotland so £30000 is a good lump sum of cash)

I believe that the loan receiver is not obliged to pay the loan (neither interest or capital) until such time in which they sell the house purchased with the loan.

...Now my thoughts are:

It this happens surely other Council's would follow.

Problem could be...could this further increase house prices as non-affordability would not longer be so much of an issue?

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The council may well be lending the money interest free, but I seriously doubt a bank will be lending it to them under the same easy conditions.

If the council is borrowing at 5% pa on each 30k then every recipient of the "free" 30k is costing council tax payers 1500 quid a year for the privilege.

I, for one, would be down the council kicking up a f****** stink about it. I pay taxes to have the streets cleaned and keep the parks tidy, not to levitate some reformed smack-head with no savings on to the housing ladder at my expense.

The council should spend that 30k on building a council house, charge the tenant the 1500 a year + a bit on top whilst telling them how lucky they are to have cheap roof over their head, and at the first sign of anti-social behaviour kick them back in to the gutter and rent it out to some one who will appreciate it.

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so they are using peoples poll tax money now to fund over inflated houses prices.

this has got to be against the law.

why dont they just ban btl on houses less than 300k.

They've been doing this for years, at one stage about ten years ago they were offering council tenants £25k - as a gift, not a loan - to buy on the open market and move out to free up the property. The effect is precisely the same as right to buy, except that the council retains the asset.

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id heard about that bluelady. at the time i didnt think it was so bad as prices were ok. 90s i think. its not on these days. its bad enough not being able to get something decent without funding unsustainable rises with my poll tax.

why dont they ban btl ?

can anybody explain why they wont ban it and why it was introduced ???

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id heard about that bluelady. at the time i didnt think it was so bad as prices were ok. 90s i think. its not on these days. its bad enough not being able to get something decent without funding unsustainable rises with my poll tax.

why dont they ban btl ?

can anybody explain why they wont ban it and why it was introduced ???

It wasn't any more OK then than it is now, it probably contributed to the inflated prices we have now. I personally object to any use of tax payers' money being used to allow selected individuals to make a personal profit, which is why I get so angry about right to buy. Why should taxpayers subsidise council tenants' property ownership?

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Guest The dude
It wasn't any more OK then than it is now, it probably contributed to the inflated prices we have now.  I personally object to any use of tax payers' money being used to allow selected individuals to make a personal profit, which is why I get so angry about right to buy.  Why should taxpayers subsidise council tenants' property ownership?

"...which is why I get so angry about right to buy. Why should taxpayers subsidise council tenants' property ownership"?

BL...this is nothing to do with council tenants property ownership...this is about EXORBITANT BLOODY HOUSEPRICES over the whole spectrumof housing. Why don't you get angry at people who buy property at 100k and two months later want to sell for 300k? Where's the sense or justice in that?

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"...which is why I get so angry about right to buy.  Why should taxpayers subsidise council tenants' property ownership"?

BL...this is nothing to do with council tenants property ownership...this is about EXORBITANT BLOODY HOUSEPRICES over the whole spectrumof housing.  Why don't you get angry at people who buy property at 100k and two  months later want to sell for 300k? Where's the sense or justice in that?

About as much sense as someone buying their council house with a massive discount at your and my expense and then selling it for a 200%+ profit a couple of years later. If you can't see that this has contributed to "exorbitant bloody house prices", then I despair.

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If you can't see that this has contributed to "exorbitant bloody house prices",

Actually BL, Right-To-Buy converted vast swathes of housing stock from the public sector to the private sector. This increased supply of housing in the private sector, which in turn acts to decrease prices. So RTB should have acted to reduce private sector house prices, not increase them. Perhaps today's housing bubble would be even worse if there had been no RTB.

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Actually BL, Right-To-Buy converted vast swathes of housing stock from the public sector to the private sector. This increased supply of housing in the private sector, which in turn acts to decrease prices. So RTB should have acted to reduce private sector house prices, not increase them. Perhaps today's housing bubble would be even worse if there had been no RTB.

I simply don't follow the logic of that. If RTB had never existed, there would be far more public housing available, reducing the need for BTL. It also produced the holy grail of home ownership which has generated the bubble, ie the need to "get a foot on the ladder" - when there was enough social housing to go round, there was no need or burning desire to go anywhere near the ladder.

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Actually BL, Right-To-Buy converted vast swathes of housing stock from the public sector to the private sector. This increased supply of housing in the private sector, which in turn decreases prices. So RTB should have acted to reduce private sector house prices, not increase them. Perhaps today's housing bubble would be even worse if there had been no RTB.

Actually I know of various counciltenants that bought there council properties for has cheaply has 9-12K and then sold them on last year for between 60-70K!Ludicrous.My hubby was actually telling me of people, that had somehow fiddled the system and bought mutiple council properties for next to nothing.

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Actually I know of various counciltenants that bought there council properties for has cheaply has 9-12K and then sold them on last year for between 60-70K!Ludicrous.My hubby was actually telling me of people, that had somehow fiddled the system and bought mutiple council properties for next to nothing.

A lot of people paid the mortgage on their parents' or even grandparents' council properties to benefit in exactly the way you describe, bearly holding up.

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Actually I know of various counciltenants that bought there council properties for has cheaply has 9-12K and then sold them on last year for between 60-70K!Ludicrous.My hubby was actually telling me of people, that had somehow fiddled the system and bought mutiple council properties for next to nothing.

Do you have tangible evidence of this?

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Actually I know of various counciltenants that bought there council properties for has cheaply has 9-12K and then sold them on last year for between 60-70K!Ludicrous.My hubby was actually telling me of people, that had somehow fiddled the system and bought mutiple council properties for next to nothing.

Actually, I know of various people who bought houses at 100k...only to be sold at 3 times that amount...we can all spout personal experience....the point is: I say DAMN them all....no matter who it is...greedy b'stards suckered in to the housing bubble maelstrom. Damn them all

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Actually, I know of various people who bought houses at 100k...only to be sold at 3 times that amount...we can all spout personal experience....the point is: I say DAMN them all....no matter who it is...greedy b'stards suckered in to the housing bubble maelstrom. Damn them all

We all know people who have done that but at least they haven't used your and my hard earned money to do it with. Unlike former council tenants. And the recipients of the interest free loans mentioned in the initial post of this thread.

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Guest The dude
We all know people who have done that but at least they haven't used your and my hard earned money to do it with.  Unlike former council tenants.  And the recipients of the interest free loans mentioned in the initial post of this thread.

BL...you speak like NO one has ever helped you in your life EVER....surely there must have ben a multitude of people who you can say "yeah...they really helped me"...what about your divorce settlements?

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I simply don't follow the logic of that.  If RTB had never existed, there would be far more public housing available, reducing the need for BTL.  It also produced the holy grail of home ownership which has generated the bubble, ie the need to "get a foot on the ladder" - when there was enough social housing to go round, there was no need or burning desire to go anywhere near the ladder.

Bluelady....we have our spats now and again, but on this issue, I completely, unreservedly, wholly, enthusiastically and sincerely agree with every word of that.

Kind Regards,

VP

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BL...you speak like NO one has ever helped you in your life EVER....surely there must have ben a multitude of people who you can say "yeah...they really helped me"...what about your divorce settlements?

What divorce settlements? And what's that got to do with taxpayers subsidising council tenants to buy houses? You really have run out of arguements, haven't you?

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I just get annoyed at any of my tax money being spent wastefully.

You don't *have* to ever get on the housing ladder if renting is cheaper.

If buying gets cheaper than renting then buy.

Why should my taxes be used to subsidise people who earn less, who already receive a nice portion of my tax money.

I agree with having a welfare state to look after disabled and temporarily unemployed people. But I object to paying for workshy pikey people. And I object to them getting as much as they do... if they can afford fags and beer and Sky+ then they're already getting too much, don't go giving them any more :angry: :angry: :angry: :angry: :angry:

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I sense a little hypocrisy here, maybe. Let's also not forget the many home owners, myself included, who were subsidised by taxpayers through our mortgage interest tax relief (later called MIRAS). Whilst I also disagree with council house RTB, many council tenants paid more tax than their OO peers.

Any tax relief OOs got through MIRAS was a drop in the ocean compared with the subsidy council tenants got to buy their homes and, if council tenants paid more tax than their OO peers, it was purely and simply because they earned more. Don't forget people who bought under right to buy got MIRAS too.

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Bl00dy Right to Buy.

Why don't I have a right to buy at well below market value??

Oh yeah, its because I have always had a job and paid my taxes and been *responsible* for myself.

What does this teach young people: If you don't take any responsibility for yourself and don't work, then the people that do will always sort you out.

No wonder we now have generations of families dependant on benefits.

I know one family (from lovely Stoke) where 3 generations of the family have all been permanently on benefits (the full monty - unemployment, disability etc, even with motability vehicles - a whole fleet). I've only ever known one of them get a job - ever. And I do know them quite well. W4nkers.

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Bl00dy Right to Buy.

Why don't I have a right to buy at well below market value??

Oh yeah, its because I have always had a job and paid my taxes and been *responsible* for myself.

What does this teach young people: If you don't take any responsibility for yourself and don't work, then the people that do will always sort you out.

No wonder we now have generations of families dependant on benefits.

I know one family (from lovely Stoke) where 3 generations of the family have all been permanently on benefits (the full monty - unemployment, disability etc, even with motability vehicles - a whole fleet). I've only ever known one of them get a job - ever. And I do know them quite well. W4nkers.

I think assuming that every council tenant is living on benefits is a step too far.

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Any tax relief OOs got through MIRAS was a drop in the ocean compared with the subsidy council tenants got to buy their homes and, if council tenants paid more tax than their OO peers, it was purely and simply because they earned more.  Don't forget people who bought under right to buy got MIRAS too.

Blueladythat's incorrect. If a council tenant earned exactly the same as an OO with a mortgage, he would have paid more tax, since he didn't get mortgage interest tax relief. Also not all council tenants bought their houses.

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