Will UK mortgage rates rise or fall ?

[Unlucky4Sum]

So how are the local authorities paying for all the council housing they are currently building in my area?

Loans, accrued revenue?

I bet they aren't and can't replace all the affordable housing they lost  

[Borchester]

or you could trust that I wouldn't have linked to it without knowing it backed the assertion

But hey ho please find them copied below.  The nub is that the central government's regular contributions to councils was reduced by the amount they gained from the sales (LCD) in effect the money went to Thatcher's coffers which gave her a one time boost and precluded the councils building replacement homes.


PART VI

Housing Subsidies

96

New housing subsidy to replace certain existing subsidies and contributions Local authorities

(1)

For the year 1981-82 and subsequent years—

(a)

a subsidy, to be known as housing subsidy, shall be payable to local authorities, new town corporations and the Development Board for Rural Wales in accordance with this Part of this Act;

(b)

no payment shall be made under any of the enactments listed in Part I of Schedule 11 to this Act; and

(c)

no payment shall be made under any of the enactments listed in Part II of Schedule 11 to this Act in respect of dwellings within a local authority's Housing Revenue Account or a new town corporation's housing account.

(2)

No grant shall be made after 31st March 1981 under section 14 of the [1958 c. 42.] Housing (Financial Provisions) Act 1958 (grants for building experiments).

Local authorities

97

Housing subsidy for local authorities

(1)

The amount of the housing subsidy payable to a local authority for any year (the year of account) shall be calculated from the amounts which are the authority's—

(a)

base amount (BA);

(b)

housing costs differential (HCD); and

(c)

local contribution differential (LCD);

for that year and shall be so calculated by using the formula BA + HCD − LCD.

(2)

If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the authority for the year of account.

98

The base amount

(1)

A local authority's base amount is, subject to any adjustment under this section.—

(a)

for the year 1982-83 or any subsequent year, the amount calculated for the preceding year under section 97, that is to say, the amount of subsidy payable to the authority for the year (or, if none was payable, nil or a negative amount, as the case may be);

(b)

for the year 1981-82, the aggregate of the following amounts payable to the authority for the year 1980-81, that is to say—

(i)

the amount of housing subsidy under section 2 of the 1975 Act;

(ii)

the amount (if any) of expanding towns subsidy under section 4 of the 1975 Act; and

(iii)

the amount of any contribution under the enactments listed in Part II of Schedule 11 which is payable in respect of any dwelling within the authority's Housing Revenue Account.

(2)

If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for any year by increasing or decreasing it, either generally or in relation to any description of authority or any particular authority ; and, without prejudice to the generality of this provision, he may adjust the base amount for the year 1981-82 by excluding from the amount taken into account as housing subsidy under section 2 of the 1975 Act so much of the new capital costs element and the high costs element as was in his opinion attributable to capital costs directly charged to revenue.

99

The housing costs differential

(1)

A local authority's housing costs differential for any year of account is the amount by which its reckonable expenditure for that year exceeds its reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable expenditure for the year of account is the same or less).

(2)

A local authority's reckonable expenditure for any year is the aggregate of—

(a)

so much of the expenditure incurred by the authority in that year and falling to be debited to its Housing Revenue Account as the Secretary of State may determine ; and

(b)

so much of any other expenditure incurred by the local authority in that year or treated, in accordance with any determination made by the Secretary of State, as so incurred, as the Secretary of State may determine to take into account for the purposes of housing subsidy.

(3)

A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities ; and any such determination may be varied or revoked in relation to all or any of the authorities for which it was made.

(4)

Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

100

The local contribution differential

(1)

A local authority's local contribution differential for any year of account is the amount by which its reckonable income for that year exceeds its reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable income for the year of account is the same or less).

(2)

A local authority's reckonable income for any year is the amount which, in accordance with any determination made by the Secretory of State, the local authority is assumed to receive for that year as income which it is required to carry to its Housing Revenue Account, but—

(a)

excluding, subject to paragraph (b) below, any income derived from any subsidy, grant or contribution; and

(b)

including any contribution made by the authority out of its general rate fund as well as any modified rent rebate subsidy payable under section 3 of the 1975 Act.

(3)

A determination under this section shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, among other things, to past and expected movements in incomes, costs and prices.

(4)

A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities, and every determination shall be made known in the year preceding the year of account to the local authorities for which it is made.

(5)

Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

So how are the local authorities paying for all the council housing they are currently building in my area?

[Unlucky4Sum]

You'll have to copy the section, I can't open it from here.

or you could trust that I wouldn't have linked to it without knowing it backed the assertion

But hey ho please find them copied below.  The nub is that the central government's regular contributions to councils was reduced by the amount they gained from the sales (LCD) in effect the money went to Thatcher's coffers which gave her a one time boost and precluded the councils building replacement homes.


PART VI

Housing Subsidies

96

New housing subsidy to replace certain existing subsidies and contributions Local authorities

(1)

For the year 1981-82 and subsequent years—

(a)

a subsidy, to be known as housing subsidy, shall be payable to local authorities, new town corporations and the Development Board for Rural Wales in accordance with this Part of this Act;

(b)

no payment shall be made under any of the enactments listed in Part I of Schedule 11 to this Act; and

(c)

no payment shall be made under any of the enactments listed in Part II of Schedule 11 to this Act in respect of dwellings within a local authority's Housing Revenue Account or a new town corporation's housing account.

(2)

No grant shall be made after 31st March 1981 under section 14 of the [1958 c. 42.] Housing (Financial Provisions) Act 1958 (grants for building experiments).

Local authorities

97

Housing subsidy for local authorities

(1)

The amount of the housing subsidy payable to a local authority for any year (the year of account) shall be calculated from the amounts which are the authority's—

(a)

base amount (BA);

(b)

housing costs differential (HCD); and

(c)

local contribution differential (LCD);

for that year and shall be so calculated by using the formula BA + HCD − LCD.

(2)

If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the authority for the year of account.

98

The base amount

(1)

A local authority's base amount is, subject to any adjustment under this section.—

(a)

for the year 1982-83 or any subsequent year, the amount calculated for the preceding year under section 97, that is to say, the amount of subsidy payable to the authority for the year (or, if none was payable, nil or a negative amount, as the case may be);

(b)

for the year 1981-82, the aggregate of the following amounts payable to the authority for the year 1980-81, that is to say—

(i)

the amount of housing subsidy under section 2 of the 1975 Act;

(ii)

the amount (if any) of expanding towns subsidy under section 4 of the 1975 Act; and

(iii)

the amount of any contribution under the enactments listed in Part II of Schedule 11 which is payable in respect of any dwelling within the authority's Housing Revenue Account.

(2)

If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for any year by increasing or decreasing it, either generally or in relation to any description of authority or any particular authority ; and, without prejudice to the generality of this provision, he may adjust the base amount for the year 1981-82 by excluding from the amount taken into account as housing subsidy under section 2 of the 1975 Act so much of the new capital costs element and the high costs element as was in his opinion attributable to capital costs directly charged to revenue.

99

The housing costs differential

(1)

A local authority's housing costs differential for any year of account is the amount by which its reckonable expenditure for that year exceeds its reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable expenditure for the year of account is the same or less).

(2)

A local authority's reckonable expenditure for any year is the aggregate of—

(a)

so much of the expenditure incurred by the authority in that year and falling to be debited to its Housing Revenue Account as the Secretary of State may determine ; and

(b)

so much of any other expenditure incurred by the local authority in that year or treated, in accordance with any determination made by the Secretary of State, as so incurred, as the Secretary of State may determine to take into account for the purposes of housing subsidy.

(3)

A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities ; and any such determination may be varied or revoked in relation to all or any of the authorities for which it was made.

(4)

Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

100

The local contribution differential

(1)

A local authority's local contribution differential for any year of account is the amount by which its reckonable income for that year exceeds its reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable income for the year of account is the same or less).

(2)

A local authority's reckonable income for any year is the amount which, in accordance with any determination made by the Secretory of State, the local authority is assumed to receive for that year as income which it is required to carry to its Housing Revenue Account, but—

(a)

excluding, subject to paragraph (b) below, any income derived from any subsidy, grant or contribution; and

(b)

including any contribution made by the authority out of its general rate fund as well as any modified rent rebate subsidy payable under section 3 of the 1975 Act.

(3)

A determination under this section shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, among other things, to past and expected movements in incomes, costs and prices.

(4)

A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities, and every determination shall be made known in the year preceding the year of account to the local authorities for which it is made.

(5)

Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

[Nick]

Sections 97-100 of the Housing Act 1980

https://www.legislation.gov.uk/ukpga/1980/51/enacted

You'll have to copy the section, I can't open it from here. 

[Unlucky4Sum]

What a load of nonsense, show this law.

Sections 97-100 of the Housing Act 1980

https://www.legislation.gov.uk/ukpga/1980/51/enacted

[Nick]

They were not by law allowed to use the money generated by the right to buy to build new council houses.

What a load of nonsense, show this law. 

[papasmurf]

She stopped Labour building council houses  
Don't be ridiculous.

They were not by law allowed to use the money generated by the right to buy to build new council houses.

[Nick]

Thatcher stopped the building of any replacements.

She stopped Labour building council houses      
Don't be ridiculous. 

[papasmurf]

They are still rented out by the council or housing associations, who owns them is irrelevant.

There is very little actual council housing left. Who owns rented housing is very relevant, and the main reason for the stupidly high rents.

[papasmurf]

Thats the point papa ,its not the right to buy that has seen a decline in council housing its in not building enough replacements .

Thatcher stopped the building of any replacements.

[Nick]

But not in council housing.

They are still rented out by the council or housing associations, who owns them is irrelevant. 

[Streetwalker]

The problem being Thatcher's "Right to buy," has now made council housing as rare as rocking horse poo and Unicorns.

Thats the point papa ,its not the right to buy that has seen a decline in council housing its in not building enough replacements . It was actually a good policy , most of the old cink estates are now  mixed estates of council and private dwellings where private ownership has dragged up living conditions for all . Anti social behaviour just isnt tollerated as it once was . 

The governments that followed could have ,if they didn't want to build , could have put a block on right to buy , they didn't .

[papasmurf]

There's 4.4 million social homes in the U.K.,

But not in council housing.

[Nick]

The problem being Thatcher's "Right to buy," has now made council housing as rare as rocking horse poo and Unicorns.

There's 4.4 million social homes in the U.K., problem is that the country is 10 million over populated with immigrants, and not the right kind of immigrants either. 

[papasmurf]

Not really . Thatchers government built plenty of council houses . The problem was future governments didnt while retaining the right to buy '

Thatcher built more council homes in one year than New Labour did during its entire term in office

The problem being Thatcher's "Right to buy," has now made council housing as rare as rocking horse poo and Unicorns.