sgtkate Posted February 8, 2016 Share Posted February 8, 2016 If richer people like their house/area, they will not pay a higher rent, they will just buy it. And that's something else I totally disagree with; buying a council house. Grrr. They belong to the country and should not be sold just because someone can afford it...why should someone get a subsidised house just because they were poor once but now aren't, thereby depriving the next poor generation of a safe, relative cheap place to live...by all means assist people to buy ANOTHER house, but leave the council housing stock well alone! sorry if I've gone off topic! Link to comment Share on other sites More sharing options...
poppet2 Posted February 8, 2016 Author Share Posted February 8, 2016 If richer people like their house/area, they will not pay a higher rent, they will just buy it. Two people each earning £20k each, with London rents to pay and a family, are not rich. Like most Londoners, they can't even afford the deposit. Link to comment Share on other sites More sharing options...
El Cid Posted February 8, 2016 Share Posted February 8, 2016 Two people each earning £20k each, with London rents to pay and a family, are not rich. Like most Londoners, they can't even afford the deposit. If they get a 30% discount, it will make getting a mortgage easier? Link to comment Share on other sites More sharing options...
the_bloke Posted February 8, 2016 Share Posted February 8, 2016 http://www.theguardian.com/society/2016/feb/06/pay-stay-rules-families-council-homes-private-sector-rent But they will just rent in the private sector and claim housing benefit to pay the private landlord's high rents! Well, no, housing benefit is means tested, if they weren't claiming housing benefit in a council house they won't claim it in the private sector either. Actually I'm all for it, I think it's silly that people on above average income should live in subsidised housing when there is a shortage of council housing for those that genuinely need it. It's time council houses stopped being seen as some sort of God given right for cheap rent, and be seen as a safety net for the vulnerable and the needy of society. The needs of all social housing tenants should be re-assessed periodically to see if the tenant still matches the criteria, both for downsizing, upsizing and if they can afford to pay market rent. Link to comment Share on other sites More sharing options...
sgtkate Posted February 8, 2016 Share Posted February 8, 2016 Well, no, housing benefit is means tested, if they weren't claiming housing benefit in a council house they won't claim it in the private sector either. Actually I'm all for it, I think it's silly that people on above average income should live in subsidised housing when there is a shortage of council housing for those that genuinely need it. It's time council houses stopped being seen as some sort of God given right for cheap rent, and be seen as a safety net for the vulnerable and the needy of society. The needs of all social housing tenants should be re-assessed periodically to see if the tenant still matches the criteria, both for downsizing, upsizing and if they can afford to pay market rent. But they aren't on above average income the_bloke, they could be earning as little as £15k a year! That's not vast amounts above minimum wage. But I agree with the sentiments. Link to comment Share on other sites More sharing options...
the_bloke Posted February 8, 2016 Share Posted February 8, 2016 But they aren't on above average income the_bloke, they could be earning as little as £15k a year! That's not vast amounts above minimum wage. But I agree with the sentiments. The idea of it being a household income and that £30k point sounds like it would use the same mechanism to calculate things like child tax credits. Actually you'd think it would use an already means tested system to reduce complexity and save money rather than creating yet another system from scratch to calculate it all. But yes, I do concede that if your council house is in an area with high rent, then the market rent on your house will also be similar and it may well be a struggle to pay the bills if your household income just scraped that £30k level. Link to comment Share on other sites More sharing options...
poppet2 Posted February 8, 2016 Author Share Posted February 8, 2016 (edited) Well, no, housing benefit is means tested, if they weren't claiming housing benefit in a council house they won't claim it in the private sector either. By the way, the benefits cap does not apply if you are working. Housing benefit is means tested, however, anyone can apply, regardless of income. It is what you are left with AFTER your rent ONLY, has been paid, that decides whether you are entitled to HB or not. Couple on £20k each in London, 4 bed council property on a Subsidised council rent £200pwk. Same house next door in private rented sector, market rent £400 pwk. They move into the private rented sector and their rent doubles. HB is based on how much you have left AFTER you have paid your rent. Their rent would have doubled, so that means they are left with less income once the rent has been paid. If they are left now on that threshold entitling them to HB, which they possibly would be, now that their rent has doubled in the London private sector, they will be entitled to HB. So it is possible that they could get some HB based on how much their rent is v their left-over income. Edited February 8, 2016 by poppet2 Link to comment Share on other sites More sharing options...
the_bloke Posted February 8, 2016 Share Posted February 8, 2016 Couple on £20k each in London, 4 bed council property on a Subsidised council rent £200pwk. Same house next door in private rented sector, market rent £400 pwk. They move into the private rented sector and their rent doubles. HB is based on how much you have left AFTER you have paid your rent. Their rent would have doubled, so that means they are left with less income once the rent has been paid. I plowed my way through the Hackney benefit calculator (http://www.hackney.gov.uk/benefits-calculator.htm) using your figures. Couple, no children, no other benefits, household income of £40k, 20% tax, 5% NI, no pension. It happily told me I would not be entitled to any housing benefit or indeed council tax benefit, and I'd be responsible for paying my own rent of £400pw. So I'm not sure where you are getting your assumption that a couple with a household income of £40k will get housing benefit from in London. Link to comment Share on other sites More sharing options...
999tigger Posted February 8, 2016 Share Posted February 8, 2016 http://www.theguardian.com/society/2016/feb/06/pay-stay-rules-families-council-homes-private-sector-rent But they will just rent in the private sector and claim housing benefit to pay the private landlord's high rents! Isn't the point that at the moment some Council tenants are enjoying low rents, when in fact they can afford to pay more? By raising the rent you can either get more money that reflects the true rent if they stay or free up the property for others who need social housing? It should remove their artificial subsidy because they can afford to pay market rates. Link to comment Share on other sites More sharing options...
El Cid Posted February 8, 2016 Share Posted February 8, 2016 Isn't the point that at the moment some Council tenants are enjoying low rents, when in fact they can afford to pay more? A couple of years ago, I moved from a 2 bed terraced house costing me £70 per week, to a 2 bed council town house costing £72 per week. The council house does have a small garden, but I have been told that council houses are not subsidised, just good value. Council housing has a separate budget to councils, I believe. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now