Cookie policy
Follow this topicFollow this topic Knowledge » Buying and selling property

Should councils sell off their best homes to build cheaper ones?

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 20 August 2012  |  Comments 15 comments

A think tank has suggested councils should sell off their most expensive homes and reinvest that cash into building cheaper ones.

Should councils sell off their best homes to build cheaper ones?

Councils should flog off their most expensive homes and use that money to build cheaper ones. At least, that’s the latest idea from the think tank Policy Exchange.

According to Policy Exchange’s calculations, more than 20% of social properties are valued above the regional median, with a total value of £159 billion.

By selling the top end properties when they become vacant, councils would raise £4.5 billion each year which could be used to build as many as 170,000 social homes a year.

The definition of an ‘expensive’ property varies on a regional basis. So an expensive house in the south east will be more costly than one in the north west.

The idea has already won favour from the Government’s Housing Minister Grant Shapps. However critics have suggested it will lead to a form of social cleansing.

You can read the full report here.

What do you think? Is this a good idea? Or will it push poorer people out of more attractive streets, possibly creating ghettos?

More on property

HSBC pulls top five-year fixed rate mortgage deal

Post Office mortgage specialists can't give you advice

Offset mortgages won't save you money

The lessons I've learned since becoming a buy-to-let landlord

Seven reasons mortgage lenders turn you down

Enjoyed this? Show it some love

Twitter
General

Comments (15)

  • babyhk
    Love rating 8
    babyhk said

    I am fortunate enough to live in a good area with good local schools . The ex council estate nearby is all owner occupied . This means you have to be pretty wealthy before you can send your child to one of these good state schools . My children could not afford to live here so my grand children will not be attending these schools. The policy of selling of affordable council housing divides families and makes a good state education - only for the chosen few. We only hear about the rough council estates and the problems they bring. There are plenty of good honest people in a variety of housing. Their children deserve the chance of a good education and the choices which are sadly too often only available to those with money.

    Report on 17 September 2012  |  Love thisLove  0 loves
  • alexms
    Love rating 8
    alexms said

    In the south-east (especially London) there's hundreds of millions of pounds of desperately-needed government (ie, public/taxpayers') money tied up in 'loss-making' state-owned housing, and a similar amount being spent on private renting by councils; meanwhile there's whole suburbs standing empty in the great cities of the north.

    This is not only a huge waste of money (twice over), it also adds to the north-south price and mind-set differentials, discourages home-ownership in both (for opposite reasons), causes class tensions between the jealous and frustrated poor and the overtaxed 'scroungerphobic' middle classes, etc.

    The solution is to sell off the valuable property but to ring fence the money for jobs, infractures etc in the northern relocations, so as not to create a 'failed state' dump for the non-contributing poor. clearly this would take time, which would enable a natural balance to establish - the north would still need doctors, just like the south would still need plumbers!

    Report on 23 September 2012  |  Love thisLove  0 loves

Post a comment

Sign in or register to post a reply.

Related content

Our top deals

Credit card
company 		Balance transfers rate and period Representative
APR 		Apply
now

Barclaycard 27Mth Platinum Visa

0% for 27 months (3.5% fee) Representative 18.9% APR (variable) Apply
Representative example: assumed borrowing of £1,200, representative 18.9% APR (variable). Purchase rate 18.9% PA (variable). BT fee is reduced from 3.9% to 3.5% (T&Cs apply).

NatWest Platinum MasterCard

0% for 26 months (2.65% fee) Representative 18.9% APR (variable) Apply
Representative example: assumed borrowing of £1,200, representative 18.9% APR (variable). Purchase rate 18.95% PA (variable).

Royal Bank of Scotland Platinum MasterCard

0% for 26 months (2.65% fee) Representative 18.9% APR (variable) Apply
Representative example: assumed borrowing of £1,200, representative 18.9% APR (variable). Purchase rate 18.95% PA (variable).
W3C  Thank you for using CGWEBLIV3