Jump to content
House Price Crash Forum
ollie plimsolls

Housing Benefit Cuts Postponed

Recommended Posts

The cut to the 30th percentile was always going to have the most effect wasn't it? The cap was only going to affect a small proportion of people.

So now they are going to implement the 30th percentile change for new housing benefit claims. When are they going to change it for all on housing benefit?

It looks like this government doesn't want to be seen being mean to anyone either. So housing market stagnant, a few austerity measures a year or so off, base rate low for the foreseeable future, inflation (CPI) simmering nicely. Doesn't look like were going to be getting big nominal falls then eh? Someone please tell me I'm wrong.

Share this post


Link to post
Share on other sites

The cut to the 30th percentile was always going to have the most effect wasn't it? The cap was only going to affect a small proportion of people.

I had assumed as much as well.

Does anybody know what were the projected savings from each measure? Cap and 30th percentile?

Share this post


Link to post
Share on other sites

Pathetic and disgusting behaviour. Students get severe cuts, armed forces see losses, claimants and private landlords get to continue to b*gger the system.

Coalition has lost the plot, if they ever had it.

I heard they might fight the next election together. I hope they do, it makes voting simpler when you can blame two numpties instead of one. That's if we even make it to the next election without a Greece or Ireland happening here. The markets wanted to see us take a firm hand, instead they will now see a limp wrist and they aren't going to like it.

Share this post


Link to post
Share on other sites

Pathetic and disgusting behaviour. Students get severe cuts, armed forces see losses, claimants and private landlords get to continue to b*gger the system.

Coalition has lost the plot, if they ever had it.

I heard they might fight the next election together. I hope they do, it makes voting simpler when you can blame two numpties instead of one. That's if we even make it to the next election without a Greece or Ireland happening here. The markets wanted to see us take a firm hand, instead they will now see a limp wrist and they aren't going to like it.

Maybe that's the plan? Come out looking mean, then appear to soften up in the face of critisism and let external forces dictate things so they can say it wasn't their fault?

Share this post


Link to post
Share on other sites

We should campaign to save the cost of the AV referendum, after the performance of the coalition who on earth who want to risk such a government again. That’d save a few million to start.

Share this post


Link to post
Share on other sites

wasn't this meant to come in in october 2010 originally ? then put off to 2011 and now 2012 :blink:

and this looney IDS's Universal Credit thingy hasn't a chance of being introduced in 2013 (or if it does it will just be JSA with a new even more silly name)

it's taken over ten years for tax credits to be integrated,and some families are still paid through income support-though all child payments are meant to come from Child Tax Credits...

i notice the Fib Dems are on 9% in the latest you gov poll :D

Share this post


Link to post
Share on other sites

More detail in the mirror:

http://www.mirror.co...15875-22746294/

Hang on...isn't this a master stroke? Surely this is great news for everyone apart from landlords?

Faster, deeper cuts to NEW claims will have an IMMEDIATE downward effect on achievable rents for new tenancies

EXISTING tenants on LHA may then find that they are able to move somewhere better, for less rent. Even if they want to stay put after one year, they will undoubtedly be able to negotiate a big discount in a falling rental market.....

But slum-lords will be screwed - unable to bail until their tenancies end, while the rental market crumbles....

Share this post


Link to post
Share on other sites

Hang on...isn't this a master stroke? Surely this is great news for everyone apart from landlords?

Faster, deeper cuts to NEW claims will have an IMMEDIATE downward effect on achievable rents for new tenancies

EXISTING tenants on LHA may then find that they are able to move somewhere better, for less rent. Even if they want to stay put after one year, they will undoubtedly be able to negotiate a big discount in a falling rental market.....

But slum-lords will be screwed - unable to bail until their tenancies end, while the rental market crumbles....

I think so too, and think some of the posts on this thread are a massive over reaction. Much better to squeeze down new claimants and a more gradual step change for existing ones. Crash On. Well more like a steady decline than a crash, but can't have everything.

Share this post


Link to post
Share on other sites

I think so too, and think some of the posts on this thread are a massive over reaction. Much better to squeeze down new claimants and a more gradual step change for existing ones. Crash On. Well more like a steady decline than a crash, but can't have everything.

I'm inclined to think this may lead to a quicker second leg down

Think about it:

LHA is 40% of London rental market, so a rapid cut to 30th percentile guarantees that rents must fall, at least to the point where paying tenants can take up the slack.

Not forgetting that for many inner city areas areas cut to 30th percentile will be a big drop in cash terms, due to the wide range between the cheapest and most expensive rentals in these areas i.e. the steepness of the curve

Share this post


Link to post
Share on other sites

I'm inclined to think this may lead to a quicker second leg down

Think about it:

LHA is 40% of London rental market, so a rapid cut to 30th percentile guarantees that rents must fall, at least to the point where paying tenants can take up the slack.

Not forgetting that for many inner city areas areas cut to 30th percentile will be a big drop in cash terms, due to the wide range between the cheapest and most expensive rentals in these areas i.e. the steepness of the curve

On average that drop to the 30th percentile means a £50 a month reduction. Not bad, but in London really not much. And in some parts of London LHA boosted rents by £200 or more a month so the landlords will still be raking it in and the marginal areas may still be let to claimants rather than finding a market price.

For rents to come down the total number of claimants has to come down and more of the stock, presumably the less desirable parts now occupied by those on HB, needs to be open to the market.

Share this post


Link to post
Share on other sites

I'm inclined to think this may lead to a quicker second leg down

Think about it:

LHA is 40% of London rental market, so a rapid cut to 30th percentile guarantees that rents must fall, at least to the point where paying tenants can take up the slack.

Not forgetting that for many inner city areas areas cut to 30th percentile will be a big drop in cash terms, due to the wide range between the cheapest and most expensive rentals in these areas i.e. the steepness of the curve

I think that the is some evidence for this in the fact that rents in London have been forced up.

Share this post


Link to post
Share on other sites
To quote good ol` Del Amitri, "Nothing ever happens, nothing happens at all, the needle returns to the start of the song, and we all sing along as before".

Lead singer also penned my signature, quite appropriate I thought.

Share this post


Link to post
Share on other sites

You wiil never beat the system.

Too many wealthy reliant on this..............Anecdotal a colleague, Asian lad, 36, has 0ver a million and a half in mortgaged property all rented to DSS, in the Midlands, his yield is 3% profit after costs all paid for by the tax payer. He makes £40k per annum profit without capital appreciation in his assets.................

Is he confident of this becoming a negative number once his interest rates start to rise? The banks will squeeze up rates regardless of what the BoE rate is.

Share this post


Link to post
Share on other sites

Fixed for you.

No-one ever laughs last. Look how we all laughed after the credit crunch when the market started falling. Look how we all laughed in 2005 when the market was falling. Wasn't the last laugh though.

Somehow think it will be the banksters that have the last laugh.

Then I guess they are too big to ever fail.

Share this post


Link to post
Share on other sites

Hang on...isn't this a master stroke? Surely this is great news for everyone apart from landlords?

Faster, deeper cuts to NEW claims will have an IMMEDIATE downward effect on achievable rents for new tenancies

EXISTING tenants on LHA may then find that they are able to move somewhere better, for less rent. Even if they want to stay put after one year, they will undoubtedly be able to negotiate a big discount in a falling rental market.....

But slum-lords will be screwed - unable to bail until their tenancies end, while the rental market crumbles....

Very good point StHF. Thanks for that. :)

Share this post


Link to post
Share on other sites

London Councils claims 18,645 households in London will be adversely affected by the proposed caps – 14,661 of which are households with children.

http://www.guardian....-postponed-2012

So, does anyone know how many new housing benefit claims there are in London per year on average?

I tried to find out but failed, though at least there seems to be a lot of advice available on how to make a claim. While looking, I noticed something vaguely surprising. I had naively thought that London would have low unemployment: http://www.hrmguide.co.uk/jobmarket/regional_unemployment.htm It's not difficult to explain in hindsight, but the trouble with such explanations is that they tend to be wrong.

Share this post


Link to post
Share on other sites

this will help pay for irelands social security payments :blink:

Osborne has found £7B down the back of the sofa !

What Britain will contribute:

- €3.8bn in loans

- Another €3.1bn from the EU bailout fund

http://uk.finance.yahoo.com/news/Ireland-bailout-main-points-tele-3529044668.html;_ylt=An2Mqek0DdxfYODztgGP0CLSr7FG;_ylu=X3oDMTE4dGE3amJnBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNpcmVsYW5kYmFpbG8-?x=0

Share this post


Link to post
Share on other sites

Spot on.

As in the information in another post, IMO the best way to do this is bring in the changes more quickly on new claims and have a gradual transition, not a step change.

Gradual transition where a policy only applies to new claims is a good way to go. It delivers more stable results, avoids conflict and you do not get so many bad headlines.

Share this post


Link to post
Share on other sites

Gradual transition where a policy only applies to new claims is a good way to go. It delivers more stable results, avoids conflict and you do not get so many bad headlines.

Indeed. And with a bit of luck you won't have to explain your thinking to three (or so) pensioners waiting for a hip replacement that i) it could be carried out immediately and then paid for by moving a scrounging family from central London to central Bradford in line with the original time plan, and ii) in the greater scheme of things it is actually better if the family stays an extra 9 months and the pensioners carry on waiting.

The way I see it, there is only so much point postponing the date since the same problems will still await. Pretty much any aspect of the situation can be made better by starting with non-working recipients on say £1000+ a week and gradually cut the limit. It's always possible to temporarily stop cutting if the voters suddenly object about the fate of recipients of say only £800 having to move somewhere that the vast majority of the working population still cannot afford ...

Share this post


Link to post
Share on other sites

Hang on...isn't this a master stroke? Surely this is great news for everyone apart from landlords?

Faster, deeper cuts to NEW claims will have an IMMEDIATE downward effect on achievable rents for new tenancies

EXISTING tenants on LHA may then find that they are able to move somewhere better, for less rent. Even if they want to stay put after one year, they will undoubtedly be able to negotiate a big discount in a falling rental market.....

You mean because they're not disgusting freeloading scroungers and they really care about the burden they place on their fellow man? Yeah right.

Glad to see that you're also applauding the way our out-of-work Somalian friends will be forcing people who work into lower quality housing too.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 315 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.