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Labour plan to giveaway 125,000 Council Houses for 40% of value in exchange for Votes!


potholedogger

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Labour are planning to off load the Nation's stock of Local Authority homes for 40% of their slumped value. Many Local Authority homes are already standing at only 30% of their former value. Selling them off at a further 60% discount would mean that they would effectively be sold for as little as 18% of their former value.

Under previous schemes Tenants were allowed a discount on open market value of 3% for each year of their tenancy subject to a maximum discount of 30%

Purchasers will be offered Local Authority Finance if they can demonstrate they have been refused a mortgage by mainstream lenders. At the moment many Local Authorities collect less than 50% of mortgage payments a difficulty that has predated the property crash.

Approximately 10% of the National Housing Stock is owned by Local Authorities. Many of the Stock units were added at enormous cost per unit, running to €300,000 per unit, many of which immediately were in negative equity at the peak of the property market.

There is bound to be a political dividend if so many voters believe that they are getting a good deal in buying their homes at massive discounts. In the past massive numbers of Local Authority Homes were sold in the UK under Mrs. Thatcher.

Local Authority Homes are let on a Differential Rent System where by rent increases in line with household income.



The Independent reports, that typically a House valued at €200,000 will now sell for €80,000 under the new scheme.

I know of few houses in Local Authority ownership worth anything near €200K. This is clearly spin designed to puff the argument that the scheme is aimed at raising revenues for the State.

Currently up to 10% of Local Authority Homes have extensive repairs and refurbishments carried out each year typically costing as much as €100,000 per unit. Would people take better care of their homes if they owned them?


sluphttp://www.independent.ie/national-news/council-tenants-offered-homes-at-60pc-discount-3287903.html

Differential Rent Scheme > Services > - CorkCity.ie

Buying your local authority house or flat

http://www.independent.ie/national-news/council-tenants-offered-homes-at-60pc-discount-3287903.html
 


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So what will Labours solution be to the homeless situation now that the housing stock has been completely sold off ?
 

Analyzer

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A house valued at 200000 ?

A house valued by whom, exactly ?

.....the Minister for House Prices, Brian Hayes ?
 

laidback

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When promoting the selling off to council tenants scheme, will the authorities also point out that by becoming an owner you become liable for the household charge and next year to the property tax?
 

tigerben

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When promoting the selling off to council tenants scheme, will the authorities also point out that by becoming an owner you become liable for the household charge and next year to the property tax?

And looking after the property themselves, no more council free up grades for doors and windows. As well as paying water charges at full value as no longer a council tenant. Keep renting people , don't be fooled into owning a house. It's going to be the same as owning a car, a Constance stream of income for the government.
 

Tawdy

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It never surprise me on here that the amount of hyperbol and shyte stirring going on is taken as a true fact. Especially when an in&mrag is given as a "source " of information. A very discredited in&m rag at that.
 

southwestkerry

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I know people in council houses who would not get a credit union loan never mind buy their council house.
 
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It looks like the plan is to get the Councils out of Housing provision and to privatise the provision of Social Housing!
Nothing wrong with transferring Social Housing to a number of Non Profit Housing Associations like the UK rather than handing people more money.

UK example is many people bought, then remortgaged to the value of the property. Then they had the lifestyle which they believed they were entitled to including cars and holidays and continually remortgaged and reborrowed while paying back little as income was always insufficient to afford it.
In 2007 when lending became tight in UK market there was no surprise when desperate sellers facing repo were getting out before they were reposessed. Since then the 35,000 repo's a year have included approx 20% of which have been reposessed by the non standard lenders who also have substantial unsecured debts as well.

Ireland going to repeat what UK did.
 

lying eyes

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Sher Labour gave a tax amnesty to the well heeled a few years back, now it is the turn of the less well off. Labour like to give other peoples money away. Or would it be social justice, I do not think so, more like FF vote buying, imagine that, I am shocked.
 

grassroots

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It is interesting to note that owner occupied houses in what used to be council estates are always in better condition than those still rented.
 

Analyzer

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Are they not a bit concerned that people with one job in the family, and a massive mortgage, might drop out of the job, then default on the mortgage, and get on a waiting list and become mortgage free ?

The Irish Looper Party. Keeping FF with a chance of the working class vote for decades.
 

indy

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So what will Labours solution be to the homeless situation now that the housing stock has been completely sold off ?
Are you suggesting that selling houses to people who already occupy them is going to make homelessness more prevalent? It won't.
 

drjimryan2

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what ever happened to the concept of an 'effort dividend'?

this is yet another sop to the lazy and disinterested d's
 

potholedogger

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Nothing wrong with transferring Social Housing to a number of Non Profit Housing Associations like the UK rather than handing people more money.

UK example is many people bought, then remortgaged to the value of the property. Then they had the lifestyle which they believed they were entitled to including cars and holidays and continually remortgaged and reborrowed while paying back little as income was always insufficient to afford it.
In 2007 when lending became tight in UK market there was no surprise when desperate sellers facing repo were getting out before they were reposessed. Since then the 35,000 repo's a year have included approx 20% of which have been reposessed by the non standard lenders who also have substantial unsecured debts as well.

Ireland going to repeat what UK did.
Housing associations are just more expensive quangos!
 

Truth.ie

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It is interesting to note that owner occupied houses in what used to be council estates are always in better condition than those still rented.
This is one positive aspect of this.
It was also Thatchers motivation when she launched the same policy in the 80's.
Without a doubt when people own their own homes they're more likely to brush the street outside their home, cut the lawn, clean graffiti.
Nothing wrong with renting, but some families spend generations living off the teet of the Council/Government and therefore have no experience of self responsibility, or civic duty.
This is what should be tackled and can only be done by weening them off the teet.
 
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Are you suggesting that selling houses to people who already occupy them is going to make homelessness more prevalent? It won't.
You remove housing stock so when people die it stays in the private sector and never gets let out to social tenants again.

In addition people sometimes transfer to be close to families in other areas. So a couple whose kids have grown up and have moved into another area, may want a transfer from a 3 bed house to a flat in that area. Once you sell the house its gone and no chance of reuse.
 
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Housing associations are just more expensive quangos!
Not if done correctly as then then responsible for housing people and you remove politicians away from it.

Getting Tenants a right to vote couple of tenants onto board also helps.

Set up the controls of what they can and can't do and have 5-6 for the country.
 

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