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[Lance Charnes]

This doesn't belong anywhere in the current folder scheme, so it's as good here as anywhere...

I'm trying to find out what the practical upper income limit is for obtaining council housing in the UK, specifically Southampton. I've checked the websites for the local Council, DCLG and also Shelter England, but the corporate line is "Most people who are living in the UK permanently are eligible." While I'm sure a millionaire could apply for council housing, I doubt he/she would get very far.

I have an MC who makes ~30000 pounds annually. She's able-bodied, single, and childless -- and perpetually broke. I'd figured up to now that it was partly because she was renting privately, but now I'm not so sure, with all the new social housing schemes available. I was surprised to discover that private rentals make up only 10% of the housing market in the UK.

So, question: how much money can a Brit make before being effectively shut out of the competition for council/social housing? I'm not talking about receiving Housing Benefit; I'm more interested in the breakpoint beyond which there's no point in someone waiting for council/social housing because he/she can't rack up enough points to make any headway on the housing register. I'm assuming that income is one of the factors the council takes into account; if not, then I'm all wet, but I'd be amazed if it isn't.

If you know where I can look this up, please let me know. If you can explain why I have this all wrong, please do. Thanks.

[Michele Viney]

Lance,

You really do ask difficult questions! I am glad that you differentiated between being eligible for council housing and housing benefit. Earning £30,000 p.a. your MC is fairly comfortable for a singleton in Southampton, might be a bit different if she was living in London. She might find a mortgage a little tough on her but renting I think she would be comfortable enough.

She would probably be stuck on a council housing list for ever with her being single, no kids, healthy, and in a good income bracket! Although technically everyone is eligible, all sorts of criteria have to be fulfilled. I heard of someone who was a single mother living more or less on her single parents allowance who was on a council list 11 years and only got a council house because she got seriously ill.

However there may be a solution, in the UK they have a scheme whereby you can buy your home jointly with the County Council. I found Southampton's council's website www.southampton.gov.uk and put in "Joint Ownership" in the Keywords search and lots of options came up.

Hope this is of some help

Good luck with your search

Michele

[Lance Charnes]

Thanks, Michele.

I'm sort of surprised that my MC would be considered "comfortable" at her income level. I always hear about how expensive it is to live in England, how high the taxes are, and so on. The university workers' unions (my MC is a lecturer) certainly make it sound like their members are on poverty's doorstep.

I ran some numbers from HM Revenue and Customs and the local council and ended up with a tax burden lighter than what we have here in the US, which makes me suspect I'm missing something. (Income tax, National Insurance, council tax -- what else is there?)

I guess I'll need to hit the Southampton rental listings again to figure out where she lives. I suppose a private, market-rate rental could take a big chunk out of her take-home and explain her financial dilemma.

[Elena]

Buying power is lower in general because of a national VAT (value added tax) where a tax on the value of a product is added at each step of the way to the consumer.  This I've been told comes out much higher than our sales tax.  There are some things not included like children's clothing, but adult clothing is hit with it.  I think too, they still have an annual tax on radios and TV's.  This is under the general heading of licensing and I've been told can really add up.

Elena

[Michele Viney]

Thanks, Michele.

I'm sort of surprised that my MC would be considered "comfortable" at her income level. I always hear about how expensive it is to live in England, how high the taxes are, and so on. The university workers' unions (my MC is a lecturer) certainly make it sound like their members are on poverty's doorstep.

I ran some numbers from HM Revenue and Customs and the local council and ended up with a tax burden lighter than what we have here in the US, which makes me suspect I'm missing something. (Income tax, National Insurance, council tax -- what else is there?)

I guess I'll need to hit the Southampton rental listings again to figure out where she lives. I suppose a private, market-rate rental could take a big chunk out of her take-home and explain her financial dilemma.

Lance

My suggestion is that she is renting a fabulous flat, has a really good car and expensive taste in clothes and that with eat nicely into her income.

Council Tax (I think) is paid by the home owner but it would be calculated into her rent.

Elena is right about VAT, in Britain it is (I think) 17.5% (In Ireland it's 21% ) Don't forget car tax and Insurace - her premiums could be very high for some reason. Car tax is calculated on the engine capacity - the bigger the car - the higher the car tax.

Could she be supporting an elderly family member and that could account for some of her expenses

The reason I said she is comfortable is because by my standards she is, me being a poor lowly paid freelance! but one person's comfortable is another person's impoverished - it depends on your tastes

Cheers
Michele