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Pay to stay, the living wage and social housing.

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sickpup
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PostPosted: 19:55 - 02 Apr 2016    Post subject: Pay to stay, the living wage and social housing. Reply with quote

I'm wondering what people think of the Geaorge osbourne proposal in relation to social housing.

At the moment the plan is that any hosuehold in social housing earning over £30k a year outside or £40k inside London would have to pay market rent. The extra over and above the social housing rent if a council house would go straight to Central Government. Any house empty because of this would have to be sold as quickly as possible.

With the new living wage of £7.20 an hour any household (outside London) with 2 people working collectively over 81 hours a week would be included in this and could see their rent increased by 100+% Any Household within London where the top two earners collectively earn more than £40k would see their rent rise by somewhere in the region of 300-400%

The only possible way this may not apply is if you are on a benefit of somekind.

As thse wages are not even pasrticularly high, they don't even meet the UK average wage what are peoples views on these proposals?
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recman
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PostPosted: 20:22 - 02 Apr 2016    Post subject: Reply with quote

I think it's pretty shitty and I'm thoroughly glad that I don't earn 30k plus. Although last year it was close.
Are they looking at net or gross income?
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sickpup
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PostPosted: 20:26 - 02 Apr 2016    Post subject: Reply with quote

recman wrote:
Are they looking at net or gross income?


They are looking at gross for the top two earners in a household.
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recman
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PostPosted: 20:29 - 02 Apr 2016    Post subject: Reply with quote

So what about a single income household?
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sickpup
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PostPosted: 20:33 - 02 Apr 2016    Post subject: Reply with quote

recman wrote:
So what about a single income household?


Based on the single income.
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Itchy
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PostPosted: 20:37 - 02 Apr 2016    Post subject: Reply with quote

Quote:
As thse wages are not even pasrticularly high, they don't even meet the UK average wage what are peoples views on these proposals?


My feeling on the proposals are mixed. In that £30,000 isn't exactly a whole load of money in the UK. This is because the taxes and cost of living in the UK are extremely high. I am always irked when I need to take a bus in the UK and it costs me £4 and I think how much it costs in other places.

Anyway.

The situation you're describing is exactly how public housing in Hong Kong works. You're subject to both an income limitation and also an asset limitation.

https://www.housingauthority.gov.hk/en/flat-application/income-and-asset-limits/

The average rent for Hong Kong public housing is as low as $230, averaging at $1700 (£154) with the highest being $4700 (£425) (note this often includes bills and rates).

If two people were to work minimum wage for 40 hours they'd get $5000 and be well under the income cap limit. Though of course people pay a whole lot less tax and can claim stuff off tax they pay.


I think the problem was spurred by the fact there were people like Bob Crow on £90K who lived in council housing. If they are making such limitations then it ought to be introduced gradually as a taper rather than all at once. This gives people time to adjust and make preparations.[/b]
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Rogerborg
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PostPosted: 21:46 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

Looks to me like it'll shake up the market a bit. If you have to pay private market rates and can't afford it, well, there's the private market offering you smaller properties that you can afford.

I recall when the Bedroom Tax came in, some sweaty sponger bawling about hoo the cooncil wernae going tae force her oot o' her hoose.

Madam, it's not your house. Many, many people are queued up waiting for housing, or to get into bigger properties.

Perhaps this will lead to something of a correction. Social Justice intensifies.
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sickpup
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PostPosted: 22:06 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

Rogerborg wrote:
Madam, it's not your house. Many, many people are queued up waiting for housing, or to get into bigger properties.

Perhaps this will lead to something of a correction. Social Justice intensifies.


Except in this case the Council will be expected to sell the property as soon as it is empty so please explain how this will help?
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Skudd
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PostPosted: 22:21 - 02 Apr 2016    Post subject: Reply with quote

It does make me feel umpty when I see nice flash cars outside council houses, or the occupants boasting about the luxury holidays that they have because they pay so little in rent because it is a council house.

I pay for private and don't have flash holidays or cars, I would do if I was in a council house. If I lived in a council house I could reduce my working hours by 33% and still have all the nice stuff.
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Rogerborg
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PostPosted: 22:23 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

sickpup wrote:
Except in this case the Council will be expected to sell the property as soon as it is empty so please explain how this will help?

They're not being asked to burn it down. Housing is housing, and the market will bear what it will bear. It's not like you can't claim housing benefit while you're in the private sector.

Given the scale of the problem of empty homes, putting empty social housing into the private sector where it seems more likely to actually be bought and lived in looks to me like a positive step.

There's a cooncil house across the road that's been empty for several years. Every few months some clipboard wielder shows up, peers through the rotting windows and pushes off, their little jobsworth box ticked. Now, I'm fine with it being empty rather than infested with the undeserving poor, but I imagine that social justice demands that it be occupied.
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ThoughtContro...
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PostPosted: 22:29 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

Rogerborg wrote:
I recall when the Bedroom Tax came in, some sweaty sponger bawling about hoo the cooncil wernae going tae force her oot o' her hoose.

Madam, it's not your house. Many, many people are queued up waiting for housing, or to get into bigger properties.


But it is her hoose. If she stays in it long enough she has a right to buy at a knockdown price. All she has to do is convince whoever she shacks up with to pay the mortgage. Who knows, that unofficial boyfriend that's not been on the books, because it would invalidate her benefit claim, might all of a sudden go official, and start paying the new ultra-cheap mortgage. I don't think you're fully understanding the entitlement mentality Mr Borg.
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Polarbear
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PostPosted: 22:56 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

sickpup wrote:
Rogerborg wrote:
Madam, it's not your house. Many, many people are queued up waiting for housing, or to get into bigger properties.

Perhaps this will lead to something of a correction. Social Justice intensifies.


Except in this case the Council will be expected to sell the property as soon as it is empty so please explain how this will help?


Why would it need to be sold? As soon as someone moves out the council just move the next person in. There is a waiting list everywhere.
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sickpup
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PostPosted: 23:26 - 02 Apr 2016    Post subject: Re: Pay to stay, the living wage and social housing. Reply with quote

Polarbear wrote:
Why would it need to be sold? As soon as someone moves out the council just move the next person in. There is a waiting list everywhere.


Because thats the plan the Government have, to remove all social housing and is specifically part of this plan.
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duhawkz
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PostPosted: 23:55 - 02 Apr 2016    Post subject: Reply with quote

what exactly is market rent?

where i live you can rent a 4 bed detached house for 600-700 pcm
that's easily affordable on 30k pa

in londinium a similar property would be 2k+ pcm probably a lot more
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sickpup
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PostPosted: 00:02 - 03 Apr 2016    Post subject: Reply with quote

duhawkz wrote:
in londinium a similar property would be 2k+ pcm probably a lot more


A friend of mine has just rented a small 3 bed terrace in Yiewsley just north of the Heathrow turnoff on the M4 for £1700 a month and that was cheap. Where I live in Central London a 3 bed terrace will cost you in the region of £3500+ pcm
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sickpup
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PostPosted: 00:15 - 03 Apr 2016    Post subject: Reply with quote

mpd72 wrote:
So those on £30k a year expect tax payers, many of whom earn less, to sponsor and pay for some of their cheap House


Please explain why you believe someone living in a council house is being sponsored and by whom exactly?
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duhawkz
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PostPosted: 01:07 - 03 Apr 2016    Post subject: Reply with quote

sickpup wrote:
duhawkz wrote:
in londinium a similar property would be 2k+ pcm probably a lot more


A friend of mine has just rented a small 3 bed terrace in Yiewsley just north of the Heathrow turnoff on the M4 for £1700 a month and that was cheap. Where I live in Central London a 3 bed terrace will cost you in the region of £3500+ pcm


both me an my misses together could not afford the rent a central larndan property an I earn 35k plus alone Shocked
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duhawkz
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PostPosted: 01:22 - 03 Apr 2016    Post subject: Reply with quote

sickpup wrote:
mpd72 wrote:
So those on £30k a year expect tax payers, many of whom earn less, to sponsor and pay for some of their cheap House



you can live in a council house and not receive a penny in benefits. just have to pay the full rent.
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JonB
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PostPosted: 08:30 - 03 Apr 2016    Post subject: Reply with quote

I just don't think you can have a national strategy on housing any longer. It should be entirely devolved to local or regional councils to set their arbitrary limits.

£30k/pa will not sustain a rent in London/South East easily, but £30k/pa in the North East probably would.

Even rents in Bristol on a 2 bed flat are approaching £1k/pcm - someone on £30k/pa will be bringing home around £1.9k net.

Is £900/month enough to pay for heating, food, water and council tax? Probably just about.
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recman
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PostPosted: 08:37 - 03 Apr 2016    Post subject: Reply with quote

So they want you to exist rather than live.
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Rogerborg
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PostPosted: 09:14 - 03 Apr 2016    Post subject: Reply with quote

duhawkz wrote:
you can live in a council house and not receive a penny in benefits. just have to pay the full rent.

Full private market rent for an equivalent property?

That's not my understanding.

If it were the case, this would be a non-announcement.

Thing is, I genuinely am in favour of cheap housing. Private market prices are obscene.

How to sort that though?

We could build enough housing so that supply meets or, better, exceeds demand. That could be achieved by releasing the iron grip on planning permission and letting the market sort it out. So it's not going to happen.

Second choice is that all of the parlous amount of new housing that's being built be 'social'. But unless enough of it is built then only the fortunate few will benefit. Ironically, a small amount of social housing increases social inequality, which I understand is a bad thing.

There's also the problem that if you build cheap housing in areas of high demand where prices are unsustainably high London then you just, as Itchy says, kick the can down the road.

Perhaps the Tory's plan to bin social housing might actually lead to the big hard reset that's needed. Wouldn't that be like ray-ey-ain on your wedding day?
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JonB
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PostPosted: 09:29 - 03 Apr 2016    Post subject: Reply with quote

You cannot blame planning on the supply side anymore. There are loads of outline planning permission approved.

The problem is developers are only building at a rate that sustains prices. Which is why you cannot rely on the private sector whose aims are only financial - when what is needed is something societal.
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Polarbear
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PostPosted: 09:32 - 03 Apr 2016    Post subject: Reply with quote

JonB wrote:
You cannot blame planning on the supply side anymore. There are loads of outline planning permission approved.

The problem is developers are only building at a rate that sustains prices. Which is why you cannot rely on the private sector whose aims are only financial - when what is needed is something societal.


And are building only the minimum number of social housing they have to to get the development contracts.
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duhawkz
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PostPosted: 10:29 - 03 Apr 2016    Post subject: Reply with quote

Rogerborg wrote:
duhawkz wrote:
you can live in a council house and not receive a penny in benefits. just have to pay the full rent.

Full private market rent for an equivalent property?

That's not my understanding.


No, to be clear I mean you have to pay the full amount of the rent the the council/housing association charge.

Which would be significantly lower then the rent on a similar privately rental property.
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