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From sky news

Councils are preparing for a mass exodus of low-income families from the capital because of government benefit cuts, it has been claimed.

Representatives of London boroughs told a meeting of MPs last week that councils have already block-booked bed and breakfasts outside the capital.

Other private accommodation - from Hastings, on the south coast, to Reading to the west and Luton to the north - is also being sought for those priced out of London.

According to the Observer newspaper councils in the capital are warning that 82,000 families face losing their homes.

Private landlords are refusing to cut their rents down to the level of caps imposed by ministers, the paper reports.

The landlords are continuing to enjoy a healthy rental market buoyed by young professionals who cannot afford to buy. 

Jon Cruddas, the Labour MP for Dagenham, has accused the government of deliberate social engineering.

"It is an exercise in social and economic cleansing," he said, claiming families would be thrown into turmoil with children having to move schools.

"It is tantamount to cleansing the poor out of rich areas - a brutal and shocking piece of social engineering," Mr Cruddas added.

National Housing Federation chief executive David Orr described the housing benefit cuts as "truly shocking".

"Unless ministers urgently reconsider these punitive cuts, we could see more people sleeping rough than at any stage during the last 30 years," he said.

"London is one of the most vibrant and socially mixed cities in the world - and yet the diversity, for which it is so famous, is under threat from the changes to housing benefit."

Labour leader Ed Miliband has said the spending review took Britain "back to the 80s".

Responding to reports of a possible exodus, a Government spokesman said: "There is no evidence of these claims.

"Some private landlords target those on Housing Benefit because they can command higher rents from tenants causing a knock on effect on rents in the area.

"The current way that it is administered is unfair. It's not right that some families on benefits have been able to live in homes that most working families could not afford. 

"However, we are absolutely committed to supporting the most vulnerable families and have tripled our Discretionary Housing Payments to provide a safety net for those who need it."

Well I can't afford to live in the town of my girlfriends parents as it's way too expensive! Let alone nice areas of London! So are we not being cleansed out of the areas which we grew up? Or does this only apply to scum with no jobs and no money?

Mr cruddas, you're a ******ing joke!

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 I wonder where they will all be going? Most of the home counties are more expensive than London, London is actually quite cheap in the rubbish parts, its just that a few postcodes go through the roof and make the averages look higher.

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For tens of years working Londoners have been moving out to the burbs or the Home counties for 2 reasons. 1) At times the housing stock has been better but more recently price has the been the key factor.

When you return to visit parents/relatives still in London you will find that alot of the neighbouring homes are being rented out and many of those seem to be to non working families. If anything HB distorts the market against long term residents similar to villages in Devon.

A free market would hopefully end this distortion.

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 I wonder where they will all be going? Most of the home counties are more expensive than London, London is actually quite cheap in the rubbish parts, its just that a few postcodes go through the roof and make the averages look higher.

In outlying parts of east and north east London the rents could rise from £280 to £399 per week. The law of unintended consequences reigns. But will borderline areas where rents are 10-20% in excess of £400 pw fall?

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 I wonder where they will all be going? Most of the home counties are more expensive than London, London is actually quite cheap in the rubbish parts, its just that a few postcodes go through the roof and make the averages look higher.

Perhaps Geneva or Zurich, i would avoid Zug though as they wont benefit from the comedy Income tax

Edited by Tamara De Lempicka

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But isn't this normal? And really a good thing? I.e. you should only live within your means? There are many pish poor HK people. They tend not to live on HK Island or by the water front in Kowloon as it is expensive. Instead they live inland in SSP and in the NT areas where rents are somewhat cheaper. I mean Bob Mugabe lives near my dad!

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"It is tantamount to cleansing the poor out of rich areas - a brutal and shocking piece of social engineering," Mr Cruddas added.

What the heck are the poor doing living in rich areas? Rich people live in rich areas and poor in poor areas. Seems like a natural law to me. The poor cannot expect to live in Mayfair mansions, if they could, they would not be the poor. Its like arguing that is it unfair that the poor so not own private jets.

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I popped into mcdonalds the other day and you know what? No rich people! Not a single bentley going through the drive thru, I think it's disgusting, the rich have been cleansed from the poors fast food outlets.

Where have all the rich men gone?

Living in nice areas, every one

When we will ever learn

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In outlying parts of east and north east London the rents could rise from £280 to £399 per week. The law of unintended consequences reigns. But will borderline areas where rents are 10-20% in excess of £400 pw fall?

So 82K London properties are going to lose tenants, how much of those tenants will stay inside Greater London?

If all 82K tenants manage to find a rental in cheaper areas inside G.London, the average rent will be pushed upwards until landlords of mansions previously occupied by HB recipients could no longer bear the voids and will have to drop the price.

If any significant percentage out of 82K tenants move outside London, expect the average rents to stay the same until voids bite.

And only then the rents will come down.

Edited by matroskin

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From sky news

Well I can't afford to live in the town of my girlfriends parents as it's way too expensive! Let alone nice areas of London! So are we not being cleansed out of the areas which we grew up? Or does this only apply to scum with no jobs and no money?

Mr cruddas, you're a ******ing joke!

I can see a lot of landlords selling up soon which will of course increase the supply which will equal lower prices ;)

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Again, I have no sympathy here.

Why should people live for free in houses that richer people can't afford to buy or even rent themselves?

The government (previous) has used several policies and measures to ramp up the price of houses.

Be it low interest rates, BTL tax ignorance, Liar Loans, Housing Benefit.

If you have a look around any city in the UK:

Any houses for sale will be miles from the centre - squeezed onto a 1/10th acre plot with no garden hardly with 100 other cookie-cutter style Barratt Boxes.

These are the only ones for sale as established areas hardly come up for sale (and when they do, BTL swoop and make 1 old house into 6 apartments)

In the centre of towns we have flats - which are (unlike other countries), unsuitable for families to live in.

I am not sure if there should be any form of housing benefit at all.

It doesn't make sense to me.

Like unemployment benefit or disability allowances - which was created to help workers who were out of work - and is now used to keep people who don't want to work from having to bother.

In all honesty - if a council can save £100 per week in housing benefits by moving people from expensive to poor areas (£5k per year) it's a lot better than sacking Nurses, Policemen, Council workers.

This cut is a low hanging fruit among the reange of cuts that we need.

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From the Observer

from October 2011 payments will be capped at 30% of average local rents.

Well I can't afford to live in the town of my girlfriends parents as it's way too expensive! Let alone nice areas of London! So are we not being cleansed out of the areas which we grew up? Or does this only apply to scum with no jobs and no money?

Mr cruddas, you're a ******ing joke!

Well that's a lie, they mean percentile not average.

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Cat is out of the bag - London is for the super rich of any country and only the impoverished Brits live there to service the super-rich.

We have lost control of our own country.

Going back to bed now.

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If this is true, then this country is going to end up in real trouble. I can see the European courts getting hold of this.

are you a bit slow, the country is already in real trouble and has been since the tech boom ended, youve just been masking it for a decade with unpayable debt, leveraged fraud and Labournomics, youd be better of preparing for an inevitable social and fiscal regression of unprecedented proportions, than trying to impossibly impoverish the next 3 generations of kids so that youre alright

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I can see a lot of landlords selling up soon which will of course increase the supply which will equal lower prices ;)

In the London SE16 area, the local estate agent told me one of their clients is in the process of disposing of over 200 BTL properties, which included many HMO properties. Sounds like they're trying to get out whilst to goings good! Though somehow I sense the market is already flooded.

If only sellers would be realistic about their prices!

Hopefully this housing benefit clearance will mean the working Londoners will be able to rent/buy at better prices! Afterall, why do workshy people need to live nr central London away? - If I were doing nothing all day everyday, I wouldn't choose to live in central London! Let alone the moral dilemna.... Why should anyone doesn't work be able to live in a better area than people who work hard and can't afford it?! - This sums up what is so wrong about Labour!

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Living in London is just like getting a kick in the teeth on a daily basis. Me and the OH pay through the nose to live on one of the leafy posh streets. Just two blocks away is a giant estate of council flats with more satellite dishes affixed than NASA mission control. I've walked through the car park too and it's chock full of 2007 Ford Focuses and the like.

What really does it is that I'm from a similar background to most of these people living for free in the council flats, in one of London's most expensive postcodes. I got torn away from my family in the North to find a job, but these folks get to have their 'communitee' preserved like some kind of sociological experiment.

I suppose this is the 'fairness' that the Cruddas and the like are seeking to preserve.

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In the London SE16 area, the local estate agent told me one of their clients is in the process of disposing of over 200 BTL properties, which included many HMO properties. Sounds like they're trying to get out whilst to goings good! Though somehow I sense the market is already flooded.

If only sellers would be realistic about their prices!

Hopefully this housing benefit clearance will mean the working Londoners will be able to rent/buy at better prices! Afterall, why do workshy people need to live nr central London away? - If I were doing nothing all day everyday, I wouldn't choose to live in central London! Let alone the moral dilemna.... Why should anyone doesn't work be able to live in a better area than people who work hard and can't afford it?! - This sums up what is so wrong about Labour!

I think there are two reasons why they live there.

1. Some of the inner London Councils appear to be very pro-benefit culture.

2. Virtually every person I have met born in London seems to think that the rest of the planet is some kind of hell-hole compared to London.

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From sky news

Well I can't afford to live in the town of my girlfriends parents as it's way too expensive! Let alone nice areas of London! So are we not being cleansed out of the areas which we grew up? Or does this only apply to scum with no jobs and no money?

Mr cruddas, you're a ******ing joke!

Labour spent 13 years cleansing us all out of the areas that we grew up in by deliberately letting house prices inflate to an unaffordable level for first time buyers. I know a few people in nearby villages who's families have been cleansed completely after living there for generations, the villages have now in effect been turned into retirement villages for the rich.

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Living in London is just like getting a kick in the teeth on a daily basis. Me and the OH pay through the nose to live on one of the leafy posh streets. Just two blocks away is a giant estate of council flats with more satellite dishes affixed than NASA mission control. I've walked through the car park too and it's chock full of 2007 Ford Focuses and the like.

What really does it is that I'm from a similar background to most of these people living for free in the council flats, in one of London's most expensive postcodes. I got torn away from my family in the North to find a job, but these folks get to have their 'communitee' preserved like some kind of sociological experiment.

I suppose this is the 'fairness' that the Cruddas and the like are seeking to preserve.

Well said.

These Londoners get to live on benefits whilst tens of thousands of people form the regions have to become transient London dwellers for work.

A huge problem with the UK - much said on here - is how London is the centre of work in the UK having strangled the life out of the rest of the UK. The Tories created this in the 1980s under Thatch so don't hold your breath for them changing it.

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Poor and rich people who live in the "poor" areas must feel insulted by this article which insinuates that people would only live where they live because they are "socially cleansed".

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I wonder where they will all be going? Most of the home counties are more expensive than London, London is actually quite cheap in the rubbish parts, its just that a few postcodes go through the roof and make the averages look higher.

I agree Mike. South London suburbs offer better value than here in Reigate.

Ultimately the London Borough Councils will have to negotiate a lot harder on rentals than before. The entire country has council waiting lists as long as your arm so these people will not be accomodated anywhere except in the repossessed flats of washed up BTL landlords who refuse to accept the lower rental prices.

It's just a matter of time.

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In outlying parts of east and north east London the rents could rise from £280 to £399 per week.

No they won't because the (predicted) 30th percentile based maximum local rent for this area is 280/276.00.

tim

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Again, I have no sympathy here.

Why should people live for free in houses that richer people can't afford to buy or even rent themselves?

The rich stole the poors housing accomodation in the nicer inner city areas such as overlooking Thames in Chelsea during the Thatcher sell offs.

Bent Conservative council leaders were caught in massive scandals - commandeering the houses and flats and selling them off cheap to their mates and politicians!

Thus to continue in the City the councils moved them into private rental until we got the stupid situation we are in today.

Councils have already said up to 50% of these people are working families in low paid jobs in the City working for the rich and cleaning the banks offices etc.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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