Councils will be allowed to sell affordable houses on market
- Thread starter AKA
- Start date
Yeah I saw that piece yesterday and I have to say a little concerned. I have just bought under ah.
I know the piece wasn't that clear but will they be selling them at the market value or the price the council paid?
What was also an eye opener was that the council has to buy the property off the developer if it has been refused by two AH applicants. Never knew that.
I know the piece wasn't that clear but will they be selling them at the market value or the price the council paid?
What was also an eye opener was that the council has to buy the property off the developer if it has been refused by two AH applicants. Never knew that.
The Councils will sell them for whatever they can get. A number of Councils are in a dire financial situation with massive liabilities whilst at the same time being owed huge amounts of money.
I don't expect the AH scheme to exist this time next year (maybe even this time next month).
I don't expect a number of Councils to exist in their current form this time next year.
I don't expect the AH scheme to exist this time next year (maybe even this time next month).
I don't expect a number of Councils to exist in their current form this time next year.
"Minister for the Environment John Gormley is to send a circular in the next two days to city and county councils permitting them to sell affordable houses at market value to private buyers"
They're being sold at the current market value. I'm in the middle of purchasing an affordable property and I have to say I'm not too worried....the MV on my apartment was 300K so there was no way I was going to get a mortgage for anything in the vicinity of an amount like that. I'd say anyone who's in the same boat as me was unlikely to secure a mortgage for the MV anyway. Unless of course they were buying somewhere where the MV was the same as the Affordable Purchase price.....
They're being sold at the current market value. I'm in the middle of purchasing an affordable property and I have to say I'm not too worried....the MV on my apartment was 300K so there was no way I was going to get a mortgage for anything in the vicinity of an amount like that. I'd say anyone who's in the same boat as me was unlikely to secure a mortgage for the MV anyway. Unless of course they were buying somewhere where the MV was the same as the Affordable Purchase price.....
I think it's great news. I'd prefer the council to sell the remaining units in our place privately rather than change them to social housing which would have made it harder to sell in the future.
Although only in my place a few months I'm glad I got a chance to buy under AH - wouldn't get the full MV on a mortgage if we bought privately now even though values have dropped. In fact I'd say we'd be offered about 120k less so I'm glad we bought when we did. Wouldn't have a hope of buying the same apartment now.
In one way it makes sense for affordable housing schemes to end now, although there will always be people who can't afford to buy privately and could do with affordable housing. Surely it's better to give someone an option to buy than to give them a house for free on social housing?
Although only in my place a few months I'm glad I got a chance to buy under AH - wouldn't get the full MV on a mortgage if we bought privately now even though values have dropped. In fact I'd say we'd be offered about 120k less so I'm glad we bought when we did. Wouldn't have a hope of buying the same apartment now.
In one way it makes sense for affordable housing schemes to end now, although there will always be people who can't afford to buy privately and could do with affordable housing. Surely it's better to give someone an option to buy than to give them a house for free on social housing?
I cant see the affordable housing being scrapped but maybe reformed, there
will always be a catagory of people who have a housing need and cannot afford to purchase a house on the open market.
I think its fair enough for a local authority to sell "Affordable" units on the open market providing they cannot sell them through their own data base of applicants.
I personally think the term of the claw back it way too high, maybe if they reduced the term to ten years with your percentage reducing after 5 years it might be more attractive for perspective applicants.
will always be a catagory of people who have a housing need and cannot afford to purchase a house on the open market.
I think its fair enough for a local authority to sell "Affordable" units on the open market providing they cannot sell them through their own data base of applicants.
I personally think the term of the claw back it way too high, maybe if they reduced the term to ten years with your percentage reducing after 5 years it might be more attractive for perspective applicants.
Or maybe if there was no Affordable Housing scheme propping up prices and subsidising developers then prices wouldn't have gotten so high and more people could have afforded their own home without recourse to the Local Authority? I dunno, just a thought.
Subsidies inflate prices.
Subsidies inflate prices.
Nonsense.
That may be what was stated on the tin but wasn't true in reality. This has been well documented in AAM right since the outset. All the half truths and fudges have been exposed for what they are.
http://www.askaboutmoney.com/showthread.php?t=36615
http://www.askaboutmoney.com/showthread.php?t=82145&page=2
It does say they will sell them for market value... so thats not a problem for me really. If they were to sell at less then Id feel fairly screwed over to be honest. I love my home and there's no way I could have afforded it without affordable housing but I would LOVE that clawback to be reduced!
Maybe so but do you not think you're getting yourself a very big mortgage for a single person? Is that not a lot of the argument against AH the way it is at the moment?
Totally agree with what you said Howitzer but sometimes it takes people a while to realise this and most people are starting to realise this now.
Hi Queenlex,
To clarify....the market value of an affordable apartment is not the same as the purchase price. It's valued at 300K but the purchase price is significantly less....so I wasn't taking out a mortgage for the market value but the actual purchase price which I didn't disclose in my original post.
Another thing....where does the presumption Im single come from?
There are arguments for and against Affordable Housing obviously but I'm very happy with the decision I've made
To clarify....the market value of an affordable apartment is not the same as the purchase price. It's valued at 300K but the purchase price is significantly less....so I wasn't taking out a mortgage for the market value but the actual purchase price which I didn't disclose in my original post.
Another thing....where does the presumption Im single come from?
There are arguments for and against Affordable Housing obviously but I'm very happy with the decision I've made