lets get tenants to pay the inflated rents BUT give them some equity during the course of their stay in a property
And who pays them this equity when they decide to move to a new, non social home?
Social rents are going to be hiked to closer market rates, so it some cases they will go up for £80 a week to £250 a week. (Disclaimer: The Tories are saying this only applies to those who enter social housing from this point forward). I would take £50 a week (example) of that money to accrue some equity for the tenant to be used either to pay down a deposit on the existing social house and get a mortgage once they qualify for a mortgage or use the equity as a deposit on another property, freeing up the existing property for another tenant. Should the tenant get a mortgage for the social house, the money raised will go into a house building scheme to build more social housing. If a tenant is in a social house for ten years (part buy / part rent), they would have £6,000 equity at that stage which would be 5% deposit on a £120,000 value social house. The mortgage payment on a mortgage like that would be around £650 a month, which would be cheaper than social renting (again, if they were a new tenant after this new CSR related policy is implemented).
Social rents are going to be hiked to closer market rates, so it some cases they will go up for £80 a week to £250 a week. quote]
Unsure where this £80 rent is coming from. Have asked around friends and Sovereign rents for a two bedroom house or flat are in the region of £120 - £140 a week (have been tenants ranging from 2 years to 17 years). Housing Association rent for two bedroom in W. Yorks is £90 a week. This equats to around £520 a month, not much less than private housing in Newbury and on a par with private housing in Yorkshire. If this was to increase to £250 a week, this would be over £1,000 a month and far in excess of private sector housing. As these houses are, generally, for the low earning employed, such as minumum wage, weekly earnings would not even cover the rent.
In most cases HA housing is covented because of the security. One example I was given this morning is, having carpeted and decorated, being given one months notice and having to start over again. The second example I found truly shocking. Working but on top-up benefits, the private tenants was encouraged by the landlord to apply for a new boiler and central heating through the Stay Warm scheme. All the work was done and the tenants was then giving notice. Meaning the landlord was then free to sell the property for more money due to his nice, new free heating system.
This is the problem when the HA's rely on private landlords to supply them with property. I think my own idea would only work if the property was owned by the Local Authority. The £250 a week figure was in today's paper in an article about the CSR. I just hope it's not as bad as the papers are making out, the CSR document is spun in a positive way but the lack of detail is alarming.
In most cases HA housing is covented because of the security. One example I was given this morning is, having carpeted and decorated, being given one months notice and having to start over again. The second example I found truly shocking. Working but on top-up benefits, the private tenants was encouraged by the landlord to apply for a new boiler and central heating through the Stay Warm scheme. All the work was done and the tenants was then giving notice. Meaning the landlord was then free to sell the property for more money due to his nice, new free heating system.
Were these two instances private landlords or were they Housing Association properties.
In some cases, private landlords sign over their property to HA's. They have the right to take them back when they choose in some cases, so quite a little scam if you think about it!!!
In some cases, private landlords sign over their property to HA's. They have the right to take them back when they choose in some cases, so quite a little scam if you think about it!!!
If that is the case then that is a scam and I would suggest might need some investigation. Getting a grant through the warm front scheme depends on the benefits status of the tenant but if private landlords can get the work done on the back of his tenants circumstances, I'm surprised there are no strings attached.
A friend of mine signed his over to the HA not too long ago in Northamptonshire. They pay for all of the upgrades etc. and apparently he can call it back with a certain amount of notice. I thought he was making it up!!!
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