Social housing tenants earning over £30K will have to pay up to the market rent

[Herr Tubthumper]

Whilst Iain Duncan Smith lives rent free in a £2m home with four spare bedrooms.

In it together.

 

[Ernest]

Whilst Iain Duncan Smith lives rent free in a £2m home with four spare bedrooms.

And got his Government Credit Card suspended too yet lectures people on how to spend their money

 

[spongy]

I'm one of these people stuck in this rental trap.

Rent on our 2 bed flat is £850pm. Over half my take home income. The rest goes on council tax, bills, food, Internet, shopping, running 2 cars etc and eats up virtually all of my money.

The missus has gone back to work part time a could of months ago after having our first daughter. She brings home £800pm. Which is primarily used for other "luxuries" such as the sky, my season ticket and perhaps a drink on a weekend.

We try and put into savings each month but all it takes is a car break down or something law to go tits up and we're back to skint again.

All you have to do is drive along roads like Bexhill Road in Woodingdean and you can see the difference in the place. 20 years ago there weren't that many cars up there. Now it's rammed with cars all under 4 years old. It shows just how much disposable income council tenants have if they're on a good wage. And if something breaks they just ring up the council and it gets fixed. They don't have to pay for anything extra such as building insurance either.

Council property should be for people on low income and in need of help.

I can see those affected being up in arms about it but the truth is that they can afford it but don't want to sacrifice their comfortable way of life.

I'd love to be able to buy a new car, or save for a home of my own. But I can't. I'm stuck. And I've been hit by a rent increase last month on contract renewal because the interest has risen on my landlords mortgage.

Which proves that I'm actually just buying his flat for him. Say I live here for 25 years. I will have paid for it but then he has every right to just kick me out and sell up for a tidy profit. It makes me sick.

Rent capping is needed.

I can afford to buy a house if I can get a 100% mortgage. But they don't exist any more. It will take me 30 years to save £30k. I've got no ****ing hope.

 

[smalldino]

I'm one of these people stuck in this rental trap.

Rent on our 2 bed flat is £850pm. Over half my take home income. The rest goes on council tax, bills, food, Internet, shopping, running 2 cars etc and eats up virtually all of my money.

The missus has gone back to work part time a could of months ago after having our first daughter. She brings home £800pm. Which is primarily used for other "luxuries" such as the sky, my season ticket and perhaps a drink on a weekend.

We try and put into savings each month but all it takes is a car break down or something law to go tits up and we're back to skint again.

All you have to do is drive along roads like Bexhill Road in Woodingdean and you can see the difference in the place. 20 years ago there weren't that many cars up there. Now it's rammed with cars all under 4 years old. It shows just how much disposable income council tenants have if they're on a good wage. And if something breaks they just ring up the council and it gets fixed. They don't have to pay for anything extra such as building insurance either.

Council property should be for people on low income and in need of help.

I can see those affected being up in arms about it but the truth is that they can afford it but don't want to sacrifice their comfortable way of life.

I'd love to be able to buy a new car, or save for a home of my own. But I can't. I'm stuck. And I've been hit by a rent increase last month on contract renewal because the interest has risen on my landlords mortgage.

Which proves that I'm actually just buying his flat for him. Say I live here for 25 years. I will have paid for it but then he has every right to just kick me out and sell up for a tidy profit. It makes me sick.

Rent capping is needed.

I can afford to buy a house if I can get a 100% mortgage. But they don't exist any more. It will take me 30 years to save £30k. I've got no ****ing hope.

At last, the first sensible comment

 

[Notters]

Good post [MENTION=20792]spongy[/MENTION], and your rent is very cheap for Brighton! I work in Woodingdean on a decent wage but can't afford to live here. Though fortunately Newhaven is cheaper and probably better, apart from being a little further from Brighton.

 

[smalldino]

A subsidy would imply that the council are somehow contributing to make up the difference in rent, but they are not.

Say it costs £1000 p.a. to maintain a council property and contribute towards local housing officers, and rent is £500 p.c.m. - the council are actually net to the tune of £5000 p.a. where is the subsidy? They don't have any mortgage costs to pay and the tenants pay other bills.

Council rents have been rising above inflation for some time now to start to bring them in to line with market rates anyway.

I think if you check it out, all councils with a housing stock will now have a mortgage. The housing stock used to be owned by central government but to raise money they forced all Local Authorities to purchase their own stock. This has lumped some councils with a very large mortgage, therefore there are costs involved.

Social Housing should be a safety net for people not a lifestyle choice. If you are out of work and cant afford anywhere, here is a council property. Single parent through no fault of their own with no capability to work, here's a council home. Army veteran returning to civvy street, heres your council home. Some **** earning a decent wage, move over son one of the above needs a place.

 

[Worthing exile]

Conversely I know of somebody who earns in excess of £50K pa (plus company car, decent pension, private health scheme etc) - plus his wife works - who pays £130 p/w for a council property. Most recent holidays have included Australia, Canada and Thailand. Me - plus every other taxpayer - is subsidising his rent,

Wrong. Local Authorities operate a 'Housing Revenue Account' whereby all the rents received cover all the costs. There is very little opportunity for cross charging from the General Fund (Council Tax part) of the Council and this is very closely monitored. Yes the person in question could and probably should pay more rent but the only people subsidising their lifestyle are the other Tenants.

 

[Westdene Seagull]

I'm one of these people stuck in this rental trap.

Rent on our 2 bed flat is £850pm. Over half my take home income. The rest goes on council tax, bills, food, Internet, shopping, running 2 cars etc and eats up virtually all of my money.

The missus has gone back to work part time a could of months ago after having our first daughter. She brings home £800pm. Which is primarily used for other "luxuries" such as the sky, my season ticket and perhaps a drink on a weekend.

We try and put into savings each month but all it takes is a car break down or something law to go tits up and we're back to skint again.

All you have to do is drive along roads like Bexhill Road in Woodingdean and you can see the difference in the place. 20 years ago there weren't that many cars up there. Now it's rammed with cars all under 4 years old. It shows just how much disposable income council tenants have if they're on a good wage. And if something breaks they just ring up the council and it gets fixed. They don't have to pay for anything extra such as building insurance either.

Council property should be for people on low income and in need of help.

I can see those affected being up in arms about it but the truth is that they can afford it but don't want to sacrifice their comfortable way of life.

I'd love to be able to buy a new car, or save for a home of my own. But I can't. I'm stuck. And I've been hit by a rent increase last month on contract renewal because the interest has risen on my landlords mortgage.

Which proves that I'm actually just buying his flat for him. Say I live here for 25 years. I will have paid for it but then he has every right to just kick me out and sell up for a tidy profit. It makes me sick.

Rent capping is needed.

I can afford to buy a house if I can get a 100% mortgage. But they don't exist any more. It will take me 30 years to save £30k. I've got no ****ing hope.

Agree with everything you've posted except the bit underlined. You are NOT buying the flat for your landlord as he/she will have it on a interest only BTL mortgage. That said it's ridiculous that you can afford inflated rent but can't get a mortgage .... which would be cheaper !

 

[Lower West Stander]

Wonder how Mr & Mrs Hardworking Family feel today, both earn £15k a year and now face 10% of their council rent being increased as well as losing their Child Tax Credits , no wonder the Tories were so keen to abolish the Child Poverty results.

Still knowing the Tories and their competence I've a feeling this will descend into another omni shambles, another poorly thought out policy using soundbites like 'council house rent subsidy' that the Groovey Gang and Blue Boys lap up not realising the damage this does to peoples lives.

Perhaps they should stop smoking and trade down from their iPhone 6?

 

[smalldino]

Wrong. Local Authorities operate a 'Housing Revenue Account' whereby all the rents received cover all the costs. There is very little opportunity for cross charging from the General Fund (Council Tax part) of the Council and this is very closely monitored. Yes the person in question could and probably should pay more rent but the only people subsidising their lifestyle are the other Tenants.[/QUOTE]

However, by having people in council accommodation who could and should be renting privately or even buying their own place, the councils then have a very large homeless bill by having to put people up in temporary accommodation and B & B's so instead of having someone paying a rent of £100 pw ish they are in a B & B shithole with the council paying anything up to £500 per week.

Therefore if these "rich" people would only move out of their council homes and free it up for actual needy people the actual council spend would be lower. The council would be able to spend more money on other things. This means that everyone who pays council tax is subsidising people on large wages in council houses. That is subsidising

 

[Chicken Run]

You got it. After all, its only fair that social housing should mimic the real world.

And maybe some social house users can own multiple social houses and cream a few quid off their neighbours?

Do you rent out your UK property HT?

 

[janee]

Conversely I know of somebody who earns in excess of £50K pa (plus company car, decent pension, private health scheme etc) - plus his wife works - who pays £130 p/w for a council property. Most recent holidays have included Australia, Canada and Thailand. Me - plus every other taxpayer - is subsidising his rent,

Wrong. Local Authorities operate a 'Housing Revenue Account' whereby all the rents received cover all the costs. There is very little opportunity for cross charging from the General Fund (Council Tax part) of the Council and this is very closely monitored. Yes the person in question could and probably should pay more rent but the only people subsidising their lifestyle are the other Tenants.

There is a rule now charging market rent for tenants earning over £60k, now the govt want to lower it to £30k. Seems to punish people who work hard to me.

If there was more social housing, there needn't be this squabble. £30k household income is not high.

 

[ozzygull]

I'm one of these people stuck in this rental trap.

Rent on our 2 bed flat is £850pm. Over half my take home income. The rest goes on council tax, bills, food, Internet, shopping, running 2 cars etc and eats up virtually all of my money.

The missus has gone back to work part time a could of months ago after having our first daughter. She brings home £800pm. Which is primarily used for other "luxuries" such as the sky, my season ticket and perhaps a drink on a weekend.

We try and put into savings each month but all it takes is a car break down or something law to go tits up and we're back to skint again.

All you have to do is drive along roads like Bexhill Road in Woodingdean and you can see the difference in the place. 20 years ago there weren't that many cars up there. Now it's rammed with cars all under 4 years old. It shows just how much disposable income council tenants have if they're on a good wage. And if something breaks they just ring up the council and it gets fixed. They don't have to pay for anything extra such as building insurance either.

Council property should be for people on low income and in need of help.

I can see those affected being up in arms about it but the truth is that they can afford it but don't want to sacrifice their comfortable way of life.

I'd love to be able to buy a new car, or save for a home of my own. But I can't. I'm stuck. And I've been hit by a rent increase last month on contract renewal because the interest has risen on my landlords mortgage.

Which proves that I'm actually just buying his flat for him. Say I live here for 25 years. I will have paid for it but then he has every right to just kick me out and sell up for a tidy profit. It makes me sick.

Rent capping is needed.

I can afford to buy a house if I can get a 100% mortgage. But they don't exist any more. It will take me 30 years to save £30k. I've got no ****ing hope.

I really feel for you, I see it all the time with the people I work with. The private rents are so high they can't save, and they are not in bad paid jobs. A few have gone back to living with parents in their late 20's early 30's just so they build up some money for a deposit. The problems with house prices in Reading is they can't save quickly enough. As they save the more they need with the house price increase, and who really want's to or has the option to move back with parents.

Rents should definitely be capped and council houses should be for those who really need them. I hope things change for you and your family so that one day you have a home of your own.

 

[Gwylan]

A few have gone back to living with parents in their late 20's early 30's just so they build up some money for a deposit.

While totally agreeing that housing costs are too high, that used to be the norm not so long ago. My parents lived with my maternal grandparents for 13 years after they got married - that's rather longer than usual but it was very common to live with the in-laws for a few years to save up the deposit for a home

 

[Badger]

I'm one of these people stuck in this rental trap.

Rent on our 2 bed flat is £850pm. Over half my take home income. The rest goes on council tax, bills, food, Internet, shopping, running 2 cars etc and eats up virtually all of my money.

The missus has gone back to work part time a could of months ago after having our first daughter. She brings home £800pm. Which is primarily used for other "luxuries" such as the sky, my season ticket and perhaps a drink on a weekend.

We try and put into savings each month but all it takes is a car break down or something law to go tits up and we're back to skint again.

All you have to do is drive along roads like Bexhill Road in Woodingdean and you can see the difference in the place. 20 years ago there weren't that many cars up there. Now it's rammed with cars all under 4 years old. It shows just how much disposable income council tenants have if they're on a good wage. And if something breaks they just ring up the council and it gets fixed. They don't have to pay for anything extra such as building insurance either.

Council property should be for people on low income and in need of help.

I can see those affected being up in arms about it but the truth is that they can afford it but don't want to sacrifice their comfortable way of life.

I'd love to be able to buy a new car, or save for a home of my own. But I can't. I'm stuck. And I've been hit by a rent increase last month on contract renewal because the interest has risen on my landlords mortgage.

Which proves that I'm actually just buying his flat for him. Say I live here for 25 years. I will have paid for it but then he has every right to just kick me out and sell up for a tidy profit. It makes me sick.

Rent capping is needed.

I can afford to buy a house if I can get a 100% mortgage. But they don't exist any more. It will take me 30 years to save £30k. I've got no ****ing hope.

I can't argue with much of this. I've just discovered the bloke who sits next to me at work will be affected by this, he's FURIOUS. He's a software developer and I'm pretty certain he's a long way above the £30k mark, yet he lives in social housing. Fair enough he's got a wife and kid but that's not justification for a council house. Now I know how he can afford to have 3 pints at lunch time at least 3 times a week.

 

[ozzygull]

While totally agreeing that housing costs are too high, that used to be the norm not so long ago. My parents lived with my maternal grandparents for 13 years after they got married - that's rather longer than usual but it was very common to live with the in-laws for a few years to save up the deposit for a home

Wow you did well. I love my mum and get on OK with my in-laws, but to have had to do that would have been my worst nightmare. Feel very lucky I was not put in that position, I know people don't do it through choice.

 

[Gwylan]

Wow you did well.

It wasn't me, it was my parents - although I spent my first nine years in that house. It did have other advantages for my parents, they had instant baby-sitting on tap

 

[Steve.S]

How much will it cost to implement and run.it seems to me that it will involve a lot of red tape, who is going to check the household income. 30,000 is not a high wage for a couple with a couple of children.then there are the people on Zero hours contracts, who do not always earn the same money. Will not be hard to do a bit of creative accounting for some of these people.what will happen is that most people will keep it under 30,000,the difference in rents can be as much as 5,000 a year

 

[spongy]

Good post [MENTION=20792]spongy[/MENTION], and your rent is very cheap for Brighton! I work in Woodingdean on a decent wage but can't afford to live here. Though fortunately Newhaven is cheaper and probably better, apart from being a little further from Brighton.

I don't live in Woodingdean any more. Got priced out a few years ago and ended up in Burgess Hill for a couple of years and I've been in Hassocks for a year now. I like it here. It's not Brighton but that's only 10 mins on a train and its quieter. I love the flat I'm in with the missus and little'un. It just hurts knowing I will never be able to do it for them.

Agree with everything you've posted except the bit underlined. You are NOT buying the flat for your landlord as he/she will have it on a interest only BTL mortgage. That said it's ridiculous that you can afford inflated rent but can't get a mortgage .... which would be cheaper !

I don't know what the score is exactly. We privately rent so have no dealings with thieving Letting Agents. He bought this place with a mortgage. He's only quite young still and has a pretty steady girlfriend so he rents this place to us so he could move in with his missus. To me, that's buying this place for him. It's not costing him anything anymore is it?

I really feel for you, I see it all the time with the people I work with. The private rents are so high they can't save, and they are not in bad paid jobs. A few have gone back to living with parents in their late 20's early 30's just so they build up some money for a deposit. The problems with house prices in Reading is they can't save quickly enough. As they save the more they need with the house price increase, and who really want's to or has the option to move back with parents.

Rents should definitely be capped and council houses should be for those who really need them. I hope things change for you and your family so that one day you have a home of your own.

Thanks. But unless there are some pretty widespread law and rule changes it just isn't going to happen. The banks need to do proper affordability checks instead of throwing money at people who couldn't afford them in the last decade.

I can afford to pump £900 into a mortgage every month as long as my overtime at work continues as it is (I haven't done less than 10 hours overtime a week in 5 years) so that's as stable as it can be. I just can't get the initial deposit together. It will take too long. I could live like a hermit with absolutely no social life but then why would I live my life only to go to work and back? It's a very tough line between earning a living and making a life. I need the social aspect and my main pleasure in life is spending it with friends and family doing things. I don't see the point in it otherwise. But where do you draw the line?

I admit I'm jealous of all my friends who own their own places but looking at the breakdown of it all only 3 actually earned enough to buy, nearly all the others received inheritance from dying relatives or were offered their house from a dead relative at a cut down price. I haven't been that "lucky" and neither has the missus. Neither of our respective families are well off, and we'd both rather have our parents around for a long while longer than have them die and leave a house to us just so we can get on this crappy so called property ladder.

 

[ozzygull]

Thanks. But unless there are some pretty widespread law and rule changes it just isn't going to happen. The banks need to do proper affordability checks instead of throwing money at people who couldn't afford them in the last decade.

I can afford to pump £900 into a mortgage every month as long as my overtime at work continues as it is (I haven't done less than 10 hours overtime a week in 5 years) so that's as stable as it can be. I just can't get the initial deposit together. It will take too long. I could live like a hermit with absolutely no social life but then why would I live my life only to go to work and back? It's a very tough line between earning a living and making a life. I need the social aspect and my main pleasure in life is spending it with friends and family doing things. I don't see the point in it otherwise. But where do you draw the line?

I admit I'm jealous of all my friends who own their own places but looking at the breakdown of it all only 3 actually earned enough to buy, nearly all the others received inheritance from dying relatives or were offered their house from a dead relative at a cut down price. I haven't been that "lucky" and neither has the missus. Neither of our respective families are well off, and we'd both rather have our parents around for a long while longer than have them die and leave a house to us just so we can get on this crappy so called property ladder.

I have my every sympathy, not that it is help to you. I see this situation all the time. The problem comes when people see property as an investment and not as a home. I'm not saying all private landlords are bad and the the chap you rent from seems to be be doing the sensible thing , but if people bought houses just so that they had a secure roof over their head, they would not give a monkeys if the value went up or not, and if they stopped going up above the rate of salaries then there would not be an issue for young people today. I suppose like your friends people are still managing to pay over inflated prices and until that stops this trend will continue.