Affordable housing

[supercity88]

Ye maybe my English on that is not right, I said shared because you are sharing it with someone else in that you only own 35%, obviously when you come to sell it any profit is split as far as I’m aware. My point still stands, what exactly is affordable? Says shared ownership on them

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3 bedroom town house for sale in Radcliffe Street, Royton, OL2 5PT, OL2 for £78,750. Marketed by Lisa Westerman Consultancy Lettings and Sales (LWCLS) Limited

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Affordable Housing is anything that is not private market sale. Local planning authorities carry out strategic housing market assessments to calculate what percentage of affordable housing they need in their area, and what is a viable amount they should request developments to deliver (if it isn't viable then developers will not be able to provide it because of land costs). The majority provide between 30-40% of developments as affordable housing. So 100 units would be 60-70 private market sale and 30-40 affordable. This typically is split at 20-30% shared ownership and 70-80% social rent which is for people on the Council's housing list. Both elements are purchased by a Housing Association and then rented/sold accordingly.

Shared ownership is positive in that you can staircase - so buy more of the share of your home as time goes by in order to own it in full one day.

There's also a first home policy now, which is in perpetuity. It provides discounted first homes which are capped based on market values and would be sold on at a capped price too (as a percentage of market value). Good for people getting on the ladder, but doesn't enable them to benefit from house price growth to then buy another private market house.

 

[inbetween]

Plus the rent on the % of the house not bought would most likely make it well over £1000 a month I would have thought.

Which is why the impact of interest rates is so huge and probably why these schemes will end up unsold.

We've unfortunately got addicted to cheap borrowing and that's why the housing market has exploded over the years.

It's no different for the housebuilders either as they'll borrow money to buy the land too.

 

[Scottyboi]

They do look quite nice. I don’t mind the concept of shared ownership, the logic being (for me) if the state invests in an area and that increases property prices then there is a solid argument the state should get some benefit from that. Conversely if they don’t and it goes to shit it’s fair they suffer the consequences. I’m less convinced on the rental aspect I’d rather see it as a bit of a peppercorn otherwise it’s not really affordable in the true sense.

Maybe all houses could be sold allowing for a % of shared ownership as an option. If the rent didn’t negate any savings in reduced ownership for the purchaser it might make things a bit more affordable (helping the seller who still receives full whack) and promote the concept of shared responsibility and local society a bit more.

The main issue with SO is the service charges can go up crazy amounts year on year, there is little protection against it. Hopefully it becomes better regulated. Some people in London have had their lives ruined by the SC increases.

 

[Blue Maverick]

The main issue with SO is the service charges can go up crazy amounts year on year, there is little protection against it. Hopefully it becomes better regulated. Some people in London have had their lives ruined by the SC increases.

The reason I sold my last house which was a new build along with the doubling of the leasehold every 10 years (although I believe that’s been stopped now) we got a bill to rebuild the walls on the state of £1k each in walls that stated to lean and collapse after only 4 years (builder gone bust in the crash) cost was over £100k as they were dangerous, one reason I’d never buy new build or an apartment with any service charge

 

[City Hobgoblin]

Radio 5 phone in this morning - lack of skilled bricklayers mentioned. The East European guys were good but of course aren't here any more.

 

[Blackley_Blue]

3 bed ex-council house on my estate just sold for £190k. I paid just over a quarter of that for a bigger house with bigger gardens 10 years ago. Private rents on the estate are now over £1k per month.... On a rough council estate!

Absolutely mind boggling, without doing any research, I bet my estate will be typically one of the cheapest places you could probably buy. I've genuinely no idea how first time buyers are ever going to get themselves on the ladder.

 

[inbetween]

The reason I sold my last house which was a new build along with the doubling of the leasehold every 10 years (although I believe that’s been stopped now) we got a bill to rebuild the walls on the state of £1k each in walls that stated to lean and collapse after only 4 years (builder gone bust in the crash) cost was over £100k as they were dangerous, one reason I’d never buy new build or an apartment with any service charge

They've banned leaseholds for houses.

I can understand some service charges as communal type areas such as parks or playgrounds need to be maintained and grass needs to be cut....

The councils don't always adopt them but that's their fault because it should be part and parcel of the planning. Given governments want to build more houses and not less the housebuilders have them over a barrel.

Something that many miss is that service charges are always charged to a management company and you can throw them out if residents get to together and agree... The problem is who then maintains areas and cuts the grass? :)

 

[Blue Maverick]

They've banned leaseholds for houses.

I can understand some service charges as communal type areas such as parks or playgrounds need to be maintained and grass needs to be cut....

The councils don't always adopt them but that's their fault because it should be part and parcel of the planning. Given governments want to build more houses and not less the housebuilders have them over a barrel.

Something that many miss is that service charges are always charged to a management company and you can throw them out if residents get to together and agree... The problem is who then maintains areas and cuts the grass? :)

Ye the management company we had were wankers taking money and doing fuck all, I pointed out the problems with the walls for years and they did nothing until it was too late and basically became a death trap costing the residents a fortune. The one saving grace was many were rentals so the greedy landlords had to stump up in some cases £10k! Glad there are no more leaseholds I’d heard they still had them but called peanut ones so like £20 a year, but I’m not so up on it at the moment, I know as soon as I bought my old house I bought the freehold straight away.

 

[metalblue]

The main issue with SO is the service charges can go up crazy amounts year on year, there is little protection against it. Hopefully it becomes better regulated. Some people in London have had their lives ruined by the SC increases.

Good point and well made. Definitely needs better regulation.

 

[Dicko69]

I looked into it before I bought my first house. It was a 50%, but the rent for the other 50% was equal to what the mortgage was on the half I was buying. It didn't make sense to me. Borrowing half the amount but still the same outlay each month and at the end would have still only owned half.
Didn't go for it.