Thursday, Feb 12, 2015

Shuffling public funds

FT: Landlords warn over right to buy extension

That's social landlords. They're warning against Duncan Smith's latest wheeze - to give away housing association properties to tenants....and thus reduce the housing benefit bill. The HA would retain maybe 40% of the value of a property to pay off any residual debt. Any surplus beyond this would be used to build more social housing "although this is unlikely to produce a 1:1 replacement ratio" - really?. HAs point out that the depletion of their asset base would undermine their financial liability and bring their £60bn debts onto...the public balance sheet. CEO of the National Housing Federation calls it ' genuinely stupid idea'. (May be best to google the FT title if you're not a subscriber).

Posted by icarus @ 07:57 PM (6166 views)
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4 Comments

1. icarus said...

financial viability...not liability (3rd line)

Thursday, February 12, 2015 08:20PM Report Comment
 

2. mombers said...

Fire sale of state assets now on! Get yours while they last (and you're in a target voter group)!

Friday, February 13, 2015 09:28AM Report Comment
 

3. icarus said...

For those googling the title has changed to 'Tories seek right to buy for housing association tenants'

Friday, February 13, 2015 10:46AM Report Comment
 

4. libertas said...

Presently, developers spend millions on social housing that they expect to retain as assets.
This move will cause an exodus from construction, further exacerbating housing shortages unless if government is willing to stump up the right to buy discount.

Similarily, the present "affordable" housing system makes houses more expensive because developers, having to stump up more for social housing end up not building as many houses with the limited capital they have available. Thus, private house prices are higher than they would be, with supply lower, and so discounts to market rates for affordable housing are similarly inflated.

Really, it is a joke. Developers are charged all the normal taxes plus the social housing, community infrastructure and planning obligations taxes to name a few. It is no wonder fewer and fewer houses are being built. Leave developers alone to do their job and we will get affordable housing. Return infrastructure provision to the private sector and general taxation.

Friday, February 13, 2015 02:57PM Report Comment
 

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