Sunday, Jan 03, 2010
The price that's paid to pay the price
Telegraph: Housing benefit bill rises to nearly £20 billion
The Government estimates it will pay out £19.6 billion in housing benefit during the 2009/10 financial year, according to figures slipped out on the Department for Work and Pensions' (DWP) website.
The year-on-year rise, of almost 15 per cent, is the steepest for more than 15 years. In 2010/11 the bill is expected to rise still further, to £20.8 billion.
Posted by dill @ 08:55 AM (496 views) Add Comment
6 Comments
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1. stillthinking said...
This is taxpayer money directly pumping up rents and prices. Price controls by the government. And lest we forget, these properties are in private hands, so this is a direct transfer of wealth to property owners.
What an absurd scam.
2. waitingtobuy said...
"Nationwide 17 per cent of households receive some form of housing benefit, but in areas of London the figure reaches more than 40 per cent."
Well thats 40% of london voting new liebour!!
3. Daveats said...
this is set to rise more immigrants equals more housing benefit and as lielabour need more votes the floodgates are set to firmly open for the forseeable future with the taxpayer again picking up the tab.
4. tenant super said...
Housing benefit should be capped at the average rent for a 3 bedroom house in the cheapest 30% of local authorities then slowly, the rental market will start to correct. People will therefore have to move to a cheaper area or smaller property. If they have 10 children, the experience of overcrowding will make those children less likely to have so many children themselves.
5. markj69 str05 said...
@3. TS... Couldn't agree more, cap housing benefit and restrictions on property type/value.
6. Mr C said...
Just before Christmas, my tenant lost his job and was made redundant. Him and his family have been renting our BTL 3-bed property for 6-years now and he came to me last week telling me that he can't pay his rent in January! He has been down to the council and they have said that he is entitled to benefits, so they have agreed to pay his rent instead.
It could be said that this is a transfer of wealth from the state to me, but the bottom line is that I have been renting the property out to the private sector and through no fault of mine, the money is now coming from the council. I now have two options.
1) Allow by tenant and his family to remain, maintaining stability to his family and his 3-kids can still go to the local school etc. or
2) I can kick them all out, state that I do not feel comfortable accepting government funds and rent the property out to someone in a job.
What to do, what to do? People here knock BTL investors, but in truth it's a win, win. They feather their own financial nest over the long term, while providing a much needed service to the community. If Mrs Thatcher had not told the councils to sell off most of their council houses, no one would need private rental property and there would be no need for BTL investors!