Wednesday, 25 February 2015

Right to Buy - consequences

RIGHT TO BUY the Maths

Passing an Estate Agents in Huddersfield I noticed a property to rent in Dalton asking for £650 per month. It looked like a Council House so I asked some questions.

The property was sold with a discount of £16,500, the discount was set by central government, but they don't pay it, the residents of Kirklees do. The discount is a hand out given to someone just because that at some time in the past they were fortunate enough to be given a council house. I don't blame the tenants for one moment, they did not set the rules. But the question is, if they can be given £16,500 (or as the limit now is £80,000) why can't that be given to a young couple who have not been fortunate enough to have been allocated a Council House, or how about to someone who is homeless.

To go on. The rent for the house, if it was still a council house would have been £362 per month, someone with two children would have been able to claim that in housing benefit (if the children had left home they would have been hit with the bedroom tax). Now the same person renting the house from the private landlord can claim the full £650 Local Housing Allowance.

So RTB has given an individual £16,500 and the government are paying an extra £298 in Housing Subsidy. Does that make sense?