Council tenants subsidising property owners.

[chem1st]

removed...

[monkey104]

Many existing home owners chose to buy by taking on excessive debt for houses they couldn't really afford, banking on a one-way bet on house prices continuing to increase.

 

It was their choice. Now we all pay for it. Any of the main parties will not take the step of allowing for interest rate rises. The reason is that millions would simply no longer be able to pay their mortgages, even if only modest interest rate rises happened.

 

It's such a mess. The credit that allowed many effectively sub-prime borrowers to become home owners also allowed over a million to enter the buy to let business. The credit helped push up house prices, and rents.

 

Now we have a situation where there is a push to align rent for social housing with rent for private housing. The problem is that private rents should be driven down, rather than social housing rent pushed up to align with the horribly inflated private sector.

 

---------- Post added 23-06-2013 at 08:46 ----------

 

 

How much does an interest only mortgagee pay?

 

Interest only mortgages are widespread in the buy to let sector.

 

call me old fashioned, but I bought my house so my family and I could have somewhere to live

[Longcol]

£3.5k pa.....

 

About £70 per week then. Does that include service charges or is that just the rent?

 

---------- Post added 24-06-2013 at 00:45 ----------

 

No i'm not.

 

I'm not a landlord. I don't rent my property out. I own my own home that I live in. How am I being subsidised?

 

Like millions of us, you're not. The premise in the OP doesn't stand up to any sort of scrutiny.

[I1L2T3]

call me old fashioned, but I bought my house so my family and I could have somewhere to live

 

I'm the same. I bought my Home using a repayment mortgage from a mutual based on traditional multiples of income. Somewhere for my family to live.

 

The issue is that in the 00s the whole housing market changed quite radically. A credit boom, endemic mortgage fraud, widespread interest-only mortgages, widespread equity withdrawal, buy to let etc...

 

A house of cards built on consumer fraud and financial sector fraud.

 

And we haven't had our long overdue housing market crash yet.

[therascal]

2000 labour hours in a year for a full time worker.

 

Less than 1000 hours of labour in a 3bed council house, including production of build materials.

 

Rents for a minimum wage worker consume a good third of income. Thats 666 labour hours a year.

 

Over 50 years, one will pay the equivalent of just over 33000 hours of labour in rent.

 

These labour hours converted into currency and injected into the economy find their way into house prices. And property owners gain, whilst doing nothing.

 

Council tenants (even those with spare bedrooms) subsidise property owners.

 

Council tenants are paying over the odds, and idle property owners are getting rich off of the backs of council tenants.

 

This subsidy needs to end. Property owners should put into the system instead of take out. Property owners are the true welfare scroungers.

 

After reading the above and much of your other twaddle , what a great shame all those private houses were built on the old Middlewood Hospital site, had the hospital still been open you would be a most likely patient there.

[redwhine]

Council tenants are paying over the odds, and idle property owners are getting rich off of the backs of council tenants.

Compare like with like...

 

Council tenants pay the going rate. Property owners pay the going rate.

 

Idle council tenants pay NOWT! Idle property owners get repossesed.

[Jason Bourne]

Title should be "Taxpayers paying off buy-to-let mortgages".

[The Giraffe]

Seriously... Chem1st - you bang on so much you're just a bit of a laughing stock now - you've highjacked many threads with this rubbish

 

"idle property owners" - who've probably saved really hard to get their house - what have you done apart from make pointless rants on here?

 

You sound really envious of everyone - why don't you get off your "idle backside" and do something productive then maybe you wont be so jealous of others?

 

And as for "Home owners are being subsidised by the Taxpayer." - I'm a tax payer - am I subsidising myself??

[chem1st]

Seriously... Chem1st - you bang on so much you're just a bit of a laughing stock now - you've highjacked many threads with this rubbish

 

The consolodation of property into fewer and fewer hands is no laughing matter. It is the children of Sheffield who will end up homeless and destitute, increasingly they already are. It is the city that shall suffer, as businesses leave, and whilst others are prevented from starting up.

Then the wider majority will feel the wrath of inequality as the murder rates rises and as property crimes explode

 

"idle property owners" - who've probably saved really hard to get their house - what have you done apart from make pointless rants on here?

I am not in a position of power to improve the lot of the common man, if I were I would.

 

You sound really envious of everyone - why don't you get off your "idle backside" and do something productive then maybe you wont be so jealous of others?

 

I'm not envious, I just think we should have a level playing field, equality of opportunity and all that.

 

And as for "Home owners are being subsidised by the Taxpayer." - I'm a tax payer - am I subsidising myself??

 

Aye. But you reap in subsidy much more than you pay in tax.

[Penistone999]

 

I'm not envious, I just think we should have a level playing field, equality of opportunity and all that.

 

 

We DO have a level playing field ........... everyone has the opportunity to work hard and better themselves and buy a property. The problem is some people want everything but dont want to work for it .