Help To Buy Gives 10% Return To Taxpayers

The Help to Buy equity loan scheme has produced a return of around 10% to the exchequer, according to an analysis of government data by housebuilders. The support scheme for buyers of new build homes, which has helped more than 313,000 households to purchase a property since being set up in 2013, has already generated more than £230m for the taxpayer, according to a report by the Home Builders’ Federation (HBF). The HBF report into the scheme also finds no evidence that it has contributed to price inflation. Read more on Housing Today.

Help to Buy gives 10% return to taxpayers | News | Housing Today

National VRTB Roll-Out Would Cost £14.6bn In First Decade

According to calculations drawn from numbers included in a government-commissioned report looking into the Midlands Voluntary Right to Buy (VRTB) pilot, it is estimated that in the first year alone, the bill for the taxpayer would come close to £2.1bn. An evaluation report on the pilot, published last month by the MHCLG, estimated that were the policy rolled out across England, 32,000 housing association homes would be sold off in the first year. After 10 years 223,843 sales would take place. The review also revealed that the 1,892 sales through the Midlands pilot cost the government £65,390 each on average, mostly through reimbursing providers for the sizeable discounts on offer. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/national-vrtb-roll-out-would-cost-146bn-in-first-decade-69844 

Landlords Pushing Up Rents To Exploit Housing Benefit Shortfall

Benefit cuts and unscrupulous landlords have combined to create an explosion in temporary housing that is costing taxpayers more than a billion pounds a year. The latest figures reveal that housing benefit does not cover rents in 95 per cent of the country, pushing thousands of families into homelessness. The gap between welfare support and costs is more than £100 a month in much of England and in excess of £900 in central London. Spending by councils on emergency bed and breakfast accommodation has risen by 147 per cent in five years. The number of units has grown by only 32 per cent, leading to claims that rates are being inflated by “wily landlords” to take advantage of spiralling demand.

https://www.thetimes.co.uk/edition/news/landlords-pushing-up-rents-to-exploit-housing-benefit-shortfall-bpvht6lbg

'More Older People's Housing Could Save Taxpayer £14bn'

The taxpayer could save £14.5bn over 50 years if just one couple among every 50 older homeowners downsizes into specialist retirement housing. That is the finding of a report by older people’s specialist housing association Anchor and Strategic Society Centre. The report, entitled Valuing Retirement Housing, uses a wide range of datasets to provide estimates of savings retirement housing can generate for local and central government. It estimates one extra person moving into specialised retirement housing could save £9,700 over 10 years due to fewer falls, reduced home and residential care. A couple moving into retirement housing could save the taxpayer £54,800 due to freeing up a home for first-time buyers, creating more retirement wealth for them and less reliance on housing benefit. Read more on Inside Housing.

Private Landlords Gain £26.7bn from UK Taxpayer

Private landlords are benefiting from subsidies worth the equivalent of £1,000 for every household in the UK, the campaign group Generation Rent has claimed, with tax breaks and housing benefit bolstering their gains from house price increases. Figures suggest landlords could be gaining as much as £26.7bn a year from the taxpayer, equal to £1,011 each for the country’s 26.4m households. The buy-to-let industry has boomed in recent years as the rising rents and house prices have made property an increasingly attractive investment for those with enough money to raise a deposit. Letting agents ludlowthompson said data from HM Revenue & Customs showed the total number of buy-to-let investors in the UK had increased by 120,000 in 2014, to 1.6 million. Read more on the Generation Rent blog.

Time for a Landlord Tax

In an age of austerity landlords have made £177 billion in capital gain alone over the past five years. On top of this they have received £30-40 billion in rent a year, including about £9 billion a year in Housing Benefit. Landlords are able to outbid owner occupiers who don't realise a cash return in the same way, making the housing market skewed in their favour. They get Mortgage Interest relief that isn't available to homeowners, many loopholes for releasing capital gain without paying Capital Gains Tax, and a special landlord tax break called the "Wear and tear" allowance. When they're making so much money, we don't think they should be getting such huge taxpayer subsidies. Read more on the Generation Rent website.