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TODAY'S OTHER NEWS

Charity wants Thatcher's Right To Buy extended to private tenants

A charity, the Joseph Rowntree Foundation, wants a form of Right To Buy to be given to private tenants. 

Right To Buy was pioneered in the 1980s by then-Prime Minister Margaret Thatcher. who introduced it for council housing tenants. It is widely regarded now as having contributed towards a shortage of housing in the wider rented sectors.

The foundation says successive governments have promised to solve the housing crisis by building more houses, while effectively ignoring the ownership pattern for the existing 25m homes across the UK.

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So it says for this reason - and while landlords are reassessing the profitability of private renting in the light of upcoming reforms - it is time to “see this as an opportunity to implement policies which see homes change hands from landlords to tenants.” 

The foundation claims this would help budding homeowners previously unable to access the market find affordable, secure homes and give them the chance to build wealth.

So the charity proposes that government sets a strategy for reducing the size of the private rental sector “by rebalancing the position of first-time buyers and landlords in the mortgage market and discouraging property speculation.” 

It suggests this would be achieved by reviewing the regulations that govern mortgages to prioritise lending towards those looking to buy for the first time over landlords, alongside higher taxes to reduce speculation on property.

To help tenants further, it says explicitly that there should be a form of Right To Buy in the private sector, with discounts and cash incentives.

Those private landlords that battle through and remain in the sector should “receive funding to retrofit their home to high environmental standards, in return for leasing it to a housing provider to provide to tenants at lower than market rents.”

There should also be an expanding of ownership models including part-rent part-buy and Shared Ownership.

Darren Baxter, a senior policy adviser at the foundation, says: “The housing market is not working. In recent decades we have seen the rapid growth of the private rented sector alongside the decline in the proportion of households in social housing or owner occupation. Consequently, millions of people are stuck paying unaffordable rents, worried about being evicted by their landlord and have little opportunity to save.

“Right to Buy and the expansion of the private rented sector following the global financial crisis have already shown that rapid shifts in the distribution of homes are possible. Reforming the private rented sector by shifting the distribution of homes within it should be the gateway to further, fundamental reform of the housing market. 

“Reforms of this type would ensure the housing market supports those looking for somewhere to call home over those seeking assets to invest in.”

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  • George Dawes

    Whereas they'll no doubt lower the rents and everyone will live in a happy fluffy bunny wonderworld

    /s

  • John  Adams

    These different organisations just don't seem to grasp the fact that a Housing Shortage isn't resolved by changing who owns the property. You can't pour another Pint into a full glass, there is as Johnny Depp can tell you no such thing as a Mega Pint. This is purely socialist nonsense to deflect away from the fact they have no credible plan to build homes, whilst the population is growing quicker than supply. The worrying thing is they are a Charity and if they can't work out simple facts, should they be allowed anywhere near public funds?

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    No, just no! The charity should keep their nose out of our business and concentrate on the social housing sector issues!

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    Joseph Rowntree should be held to account for their contribution to homelessness. People wouldn't need to worry about being evicted if the White Paper were scrapped. Rents would also fall in those circumstances.

    Additional licensing has also contributed to tenants paying higher rents. Landlords would previously let a two double bedroom flat to three or four tenants. Now they will only let to two in order to avoid the need for a license.

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    So....the tenants get the right to buy so they're sorted...what about the next generation coming up? Oh hang on, the rented.properties have all been sold?? So where do they live? In rented.otoprtty that isn't available/hadn't been built etc??
    Gov needs to rapidly build social housing to cater for the needs of the people and I'm disappointed that JR F have waded in rather than focus on the government to supply funding to councils to explicitly develop social housing, rather than do a"plug a hole to stop the leak"approach, rather than do a.proper job.in the first place!!
    At the same time, planning on.luxury developments, with provision for a couple of "affordable" homes needs urgently examining. Where stipulations say that over for example 500 homes or whatever, new homes are to be built, then the company.involved needs to supply infra structure like a school...so they apply for say 499 to escape that one...no.idea exactly on numbers.
    This is far more urgent as 1009s of people have little access to well overstretched services.like doctors, schools etc!! Now JFK, get your teeth into THAT one!!

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    These charities should keep quiet and concern on actually helping people instead of reducing the rental supply.

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    😂😂 This is comedy 🎭 gold 🥇. Just when I think it cannot get any worse…. It does 🤔🤔

    George Dawes

    ❤️ your 😝’s 😜 😊 🧐

     
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    Do gooders with no idea of the real world we live in…. Why should some charity dictate what we do with what belongs to us….. Keep your interfering noses out of our business !

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    Lunacy.
    Anyway. They already have a right to buy. They can go on rightmove, find a house, make an offer and buy it just like everyone else does.

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    • G W
    • 29 July 2022 09:41 AM

    Yes but not at a ‘discount’….. backbench Labour MPs already supporting this. I’ve made my decision to evict my longest standing tenant whose done nothing wrong and sell up!

     
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    It was theft from the state and now it’s theft from individuals being proposed by lunatic’s. Let’s face it if these types of voices are aloud to spout such drivel there really is no hope for this sinking ship of a country.

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    Its theft from the taxpayer! So some people do really well & others just pay for it!

     
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    Whilst I agree with all of the above sentiments I indeed have attempted this right to buy approach with my tenants (including a sizable discount looking to somehow get a gifted deposit through the back door) as I want to drastically resize and reconstruct my by business model to limit my exposure to this toxic environment after 30 years in the business (20odd of them being happy until this ll bashing started)

    And guess what!! Out of 42 properties not one of them are in a position to buy the house they live in and not one of my offers taken up even with a deposit effectively paid!! "They would like to keep on renting from me if thats ok?" By the way their rents are below market rents too. They will never be in a position to buy.
    And I provide good quality but 'affordable' homes in the midlands and Yorkshire where house prices are extremely reasonable.

    Now I'm faced with having to evict good tenants to sell to secure myself against the govs agendas.

    Is this really helping solve 'the housing crisis? Putting tenants out onto the streets (they cant afford the market rents) whilst giving ftb the chance to buy up the housing stock?

    I suppose in 'la la land' where these people have their heads it is seeing as they keep dreaming up these non-sensicle schemes.

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    This exactly!! I’m in the same boat - very low rents (better than social in many cases) and not one tenant able or interested in buying. When tenants move, they invariably move with me still as their landlord. Even my better-off tenants *refuse* to buy!

     
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    I too tried this with my tenants a few years ago, though a more modest portfolio. Nobody took up my offer and were happy to stay as tenants. Last year one moved, I therefore sold that property. Again I have another tenant whom is leaving at the end of the month and I can sell that one too.
    I am only selling due to these unfair and ill thought out policies.
    Plus like these 2 Landlord's my rents are below market value, though last 2 years I have increased them, but only modestly.
    Articles like this just demonstrate that idiots are still employable.
    However, where are the voices in Landlord organisations that are speaking for us. On the news a couple of weeks ago there was an NRLA representative whom tried to explain why rents were increasing, Landlord's were leaving the market and the concerns of the EPC legislation. He made some of these points but not with the right language. It was like listening to Enid Blyton on Jackanory!!
    We needed terms like persecuted, demoralised, feared for our business, frustrated at being demonised especially in light of a survey that stated most tenants get on well with their Landlord's. Government need to but the hell out (was not allowed to spell with 2 t's as deemed a swear word, how mad is that!) as their interference has caused misery for tenants and Landlord's alike.
    It's all bonkers!!!

     
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    So they want the Tenants to take over our property at a discount, that will be easy when the WHITE PAPER have them already permanently installed in your property and LL can’t them out, the picture is now becoming clear. Will future generations be able to grab the property from them.
    Time the Tax collusion Charity law were changed, LL’s are feeding them with millions of Inheritance tax, when you leave 10% or more in your Will you get a tax discount, the Charities that hates you and doing everything in their power to destroy you and we are supporting them.

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    Charities, run by people with their noses in the trough paying themselves inflated salaries , who in their right mind would donate money to them or even listen to them ?

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    What about the landlord's right NOT to sell?

    The original Thatcher right to buy was wrong but this loony idea is much much worse.

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    So, the second paragraph literally states that the original RTB caused shortages throughout the rental sector, yet here are JRF (who annoyingly share my initials) saying they want EVEN MORE of it?! These clowns haven’t got a clue. You watch, when all the PRS has been sold into RTB homeowner stock, it’ll be JRF complaining there’s nothing to rent! A bit like now when they all screamed for and celebrated S24, only to then become incandescent with rage that rents and homelessness rocketed. I think the only thing left to do is laugh knowingly to ourselves and emigrate.

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    They now have created HMO’s by Statute and enforce except for Families or so called pretend Families by any stretch of the imagination. Which one of my 5 HMO shares will have the right to buy.

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    I just don't get the principle of buying at a discount. Tesco don't give me a discount because I have been going there for years.

    I wonder what the public would say if all pension funds were raided and made to pay a substantial percentage to fund benefits payments.

    If you want tenants to be able to buy the property they are renting, don't charge Capital Gains Tax on the Landlord. No agent's fees, no CGT, I can afford to give a discount of my choice.

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    I agree Chris, if the government gave us an incentive we could give something to a tenant wanting to buy, but don't hold your breath the government wouldn't give us the steam off their P..

     
    Bill Wood

    Yes Chris.
    Remove CGT for sales to existing tenants of say, 5 years standing, allowing us to sell at, say, a 10% discount, and I would sell. Or at least offer to sell.
    But as previous contributors have said, there seems to be no willingness for tenants to buy. Three times I have asked tenants would like to buy, but have never even had a reply!

     
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    The very first comment on this hits the nail on the head. There are not enough homes to go around and moving homes from one sector (social/owned/PRS) will simply cause a shortage somewhere else.
    Solution. Build more homes and when supply equals or exceeds demand, prices level themselves. Simple

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    Regrettably far too simple for this government to understand.

     
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    • G W
    • 29 July 2022 09:50 AM

    Now we are seeing the socialist seeds sewn and the future of Landlords. Lots of comments on here aimed at ‘build more social homes’…. Yes we know that’s the answer but it won’t happen in numbers needed….. we are a growing population (don’t ask where last years immigrants are housed)…. This is the future, as it’s a vote winner, pure politics, no common sense or long term strategy….but, let’s be honest with ourselves there is a rental shortage and many rents high.

    Here are my predictions…1. CGT will increase back to 40% to dissuade us selling up. 2. The white paper will go through 3. Right to buy will gain traction as vote winner 4. I am selling up (that should be point 1 and whilst I’ve been considering it for a few months this had finally tipped me over)

  • George Dawes

    The future is a combination of soylent green and Logan’s run ….

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    Showing your age George 😁

     
    Bill Wood

    I'm of that age too. Logan's Run. Jenny Agutter :-))

     
  • Andrew Murray

    I agree with them and why not take it a step further. If you have say a 4 bed family home and your three kids leave when they are adults , you should have to sell that house at a discount to someone with a family and move into a one bed property/flat.

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    What about the situation where the family who wants to buy the family house is very rich and the pensioners who are selling it are not?

    The elderly are having to pay out a huge amount for care. Even if they pay a high service charge on a retirement flat which can be over £600 a month or even more, that does not include the cost of care which they have to pay on top - that can run into thousands of pounds a month.

    Also the cost of some retirement flats is the same as a four bedroom house.

    Sometimes people want to spend their last few years in a flat with a sea view and that can be expensive, too.

     
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    • G W
    • 29 July 2022 16:53 PM

    You sure you on right page or is this subtle sarcasm?

     
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    Mr Murray are you having a laugh. The people that worked hard scrimped & saved, bought their own home and reared their family, done it right way around. So now you want to tell me the people that decide have family first with no nest ready should be other peoples responsibility , even the birds build they nest before laying the eggs. The people that have a house they bought through hard work and their off spring may have left home temporarily, will hope one day to inherit their parents Est, you want to deprive them of that in preference to a blank stranger that’s nothing to do with them.

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    Excellent comment Michael, sums things up perfectly, '' birds build their nests first'', now tell that to all those scrounging single mums who get themselves pregnant ASAP to avoid having to work and get themselves a free home and more UC than they know what to do with , something very wrong with this country, rewarding the bone idle scroungers and screwing the hard working

     
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    Wales has a horrendous dependency culture ! It was capital of Europes unmarried mothers, and the miners never went back to work after the miners strike.

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    Edwin, Wales is the place time forgot, I've never visited, and never will, they hate the English and that's just fine by me, they can go F... themselves

     
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    Andrew for once I disagree with your comment. You are missing a great deal for the southern Welsh girls are the prettiest in the UK and the Snowdonia National Park in north Wales is one of the most scenic in the UK.

     
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    There should be no such thing as unemployment. Benefits should be for those who are unable to work due to physical or mental issues. Everyone else who hasn't got a job, instead of paying benefits the council can provide the work, cleaning streets, roadworks, admin duties etc. If they don't work, they don't get any money.

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    John for so long I have been beating this drum but there is always an excuse, the unions won't like it, there is no one to supervise, it infringes the little darlings' rights etc.
    I will volunteer to supervise; who will join me?

     
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    I'll join you, just give me a whip

     
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    Andrew

    This service is advertised in the Sunday Sport and other online publications.

     
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    What the Benefit System is doing is creating a generation of young people growing up not capable of doing any real work and probably never will, just play computer games all day long with someone in god knows where.

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    Very sadly Michael you are spot on right there, what does the future hold for our children and grandchildren , not much, I'm so pleased I'm a member of the last generation of hard working people looking to our own futures and not expecting others to provide for us.

     
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