Buy now before you have to "Pay to Stay"!
If your household income is over £31,000 (over £40,000 in London) and you live in a council
accommodation, the Government's "Pay To Stay" scheme could affect YOU.
It makes sense to BUY your council home before it's too late! Your mortgage payments could be lower than your increased rent. Contact us today to see whether you qualify for a mortgage. Usually, you don't need a deposit as your RTB discount counts as the deposit.
Text RTB to 60777 for your FREE mortgage quote or call us on 0800 083 0449.
The Government's Housing and Planning Act 2016 will make higher rents compulsory for council tenants in England if their household earnings are over £40,000 in London and £31,000 in the rest of the country. Housing associations will have discretion over whether or not to charge higher rents for households with these income levels.
The Government argues that higher income families should not be paying social rents when they could afford to pay more. People opposed to the new ruling argue that a household earning £31,000 is not a "higher income" household as it is the equivalent of two people earning minimum wage, £8.91 an hour, and working 41.4 hours per week. Households receiving housing benefit will be exempt from paying higher rents.
If the Government scheme comes into force, households earning more than £31,000 will have to pay 15p tax on every £1 that they earn over that amount. That means that for each extra £1,000 you earn in income, your rent will increase by £2.88 per week, that's £12,50 per month or £150 per year. If your household income is £40,000 for example, you will be required to pay an extra £1,350 per year in rent.
Please note the Government decided against introducing this scheme, however it could be re-introduced in the future. Why take the risk?