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Fears Over Homelessness In Wales As Cuts Bite

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http://www.bbc.co.uk/news/uk-wales-11889056

A perfect storm of job losses and housing benefit cuts will increase homelessness at a time of squeezed budgets, support groups say.

Shelter Cymru warns of "problems on all fronts", while other organisations fear the worst is yet to come.

Rough Sleepers Cymru said there was already a huge spike in the number of people coming forward.

The Department for Work and Pensions said it had worked to bring fairness to a system that was "ineffective".

However, there is concern the situation will get worse when cuts to housing benefits and public sector job losses kick in.

Joy Kent, director of Cymorth Cymru which is the umbrella body for organisations helping people to find and keep their homes, said the future was "scary".

"We're already seeing an increase in demand for services and a fall in income for those services to be provided so it's a double whammy," she added.

Other groups working at the sharp end say they are seeing a big rise in people getting into difficulties.

Continue reading the main story

Tim Paddock, chairman of Rough Sleepers Cymru, said: "Already we're seeing a huge increase in homeless presentations - the numbers are up massively.

"Normally we would get a little spike as we go into the cold period. It's gone up more than I've ever seen since I've been working in the homeless sector [eight years]."

The number of households classed as homeless in Wales rose 10% between June 2009 and June this year.

That rise was partly driven by an increase in people who lost accommodation that was tied to a job, or occupants who were required by a landlord to leave a rented property.

Ceri Dunstan, of Shelter Cymru, said as well as redundancies, problems were also being caused by reduced working hours and people not being able to make rent or mortgage payments.

"I think we're going to see a lot more people falling into difficulties in the private rented sector - that's going to be the big concern for us," she said.

"Some of the changes being brought in [by the UK government]... if you've been on Jobseekers' Allowance for 12 months or more, your housing benefit will be cut by 10%.

"We're talking about people who are in poverty anyway and I think our opinion is that it's perverse and bizarre and we can't see what the reasoning behind that is."

Continue reading the main story

Other benefit changes include an expected reduction in Local Housing Allowance payments and new limits on the amount paid according to the size of a property.

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Llandlords will simply have to drop their rental charges

unless they are happy to sit with an empty house and ZERO income

they are obviously charging more than the market can sustain

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Llandlords will simply have to drop their rental charges

unless they are happy to sit with an empty house and ZERO income

they are obviously charging more than the market can sustain

I understand what you are saying, but many landlords especially those that bought in the past 3 years or so are unable to lower rents. They need the current rates to cover mortgages and many are unable to afford to top up rents to cover mortgaages if the difference is too large.

There are lots of accidental landlords in Swansea whom have bought a property or relocated before they have sold their own house. Due to market conditions they have had no option other than becoming landlords. These are the ones that will be the first to lose their properties when tenants are unable to pay the rent or the property becomes empty.

The professional landlords will keep their rents high because it makes good business sense. While it is so hard to gain a mortgage many people have no option, but to rent, so that means that there are many tenants which then makes it easier to raise rents due to demand. Of course if a property is empty for too long a professional landlord should be able to take a hit for a while before lowering the rent slightly or at least would negotiate the rent.

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I understand what you are saying, but many landlords especially those that bought in the past 3 years or so are unable to lower rents. They need the current rates to cover mortgages and many are unable to afford to top up rents to cover mortgaages if the difference is too large.

There are lots of accidental landlords in Swansea whom have bought a property or relocated before they have sold their own house. Due to market conditions they have had no option other than becoming landlords. These are the ones that will be the first to lose their properties when tenants are unable to pay the rent or the property becomes empty.

The professional landlords will keep their rents high because it makes good business sense. While it is so hard to gain a mortgage many people have no option, but to rent, so that means that there are many tenants which then makes it easier to raise rents due to demand. Of course if a property is empty for too long a professional landlord should be able to take a hit for a while before lowering the rent slightly or at least would negotiate the rent.

Why do they have no other option? You mean they overpaid for something and wish to pass that debt on to someone else, im pretty sure any house in Wales could be sold overnight as long as the price is right, if they overpaid then they get reposessed, the next buyer pays less and can accept a lower payment at a better yield, its how efficient markets are meant to work.

The alternative is to keep costs artificially inflated through price fixing leading to the bankruptcy of the price fixer, this is the route the UK has been taking for a decade through various boom extension strategies

Edited by Tamara De Lempicka

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Why do they have no other option? You mean they overpaid for something and wish to pass that debt on to someone else, im pretty sure any house in Wales could be sold overnight as long as the price is right, if they overpaid then they get reposessed, the next buyer pays less and can accept a lower payment at a better yield, its how efficient markets are meant to work

Yes, pretty much so.

The accidental landlords bought at the wrong time or needed to relocate due to work, so they require a certain price for their property. The problem is that they bought and expected to sell which is the wrong thing to do. Common sense is to sell before you buy when it comes to property. Ok, some have had sales going through before buying only for their buyer to pull out for one reason or another and they have continued with their purchase. This leaves them with 2 mortgages to pay. If they can't sell, then they have no option other than renting until they can find a buyer.

Any house in any town could sell if the price is right. A lot of home owners have re-mortgaged when banks were throwing money at them when house prices were rising. This also leaves many people in a position that they are unable to sell because they need so much to cover their mortgage, yet prices have dropped leaving them in negative equity on today's valuations.

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Yes, pretty much so.

The accidental landlords bought at the wrong time or needed to relocate due to work, so they require a certain price for their property. The problem is that they bought and expected to sell which is the wrong thing to do. Common sense is to sell before you buy when it comes to property. Ok, some have had sales going through before buying only for their buyer to pull out for one reason or another and they have continued with their purchase. This leaves them with 2 mortgages to pay. If they can't sell, then they have no option other than renting until they can find a buyer.

Any house in any town could sell if the price is right. A lot of home owners have re-mortgaged when banks were throwing money at them when house prices were rising. This also leaves many people in a position that they are unable to sell because they need so much to cover their mortgage, yet prices have dropped leaving them in negative equity on today's valuations.

House in the same road I rent is typical of this. Came on the market last week for 300K asking price despite the fact that several others in the road all sat on the market for 1 to 2 years at 299K only to go for circa 240K over the Summer.

Sellers have just bought in Berks as had to move for work.

I was talking with an EA only yesterday about reluctant landlords in Swansea - they exist in their hundreds now apparently. As SPA says, they can't sell, the valuations are now lower than they paid but that is not stopping them ramping the asking prices to try and get out debt free... and only the ultra low IRs has saved them.

If rates had been normal I believe we would have seen a crash worse than the early 1990s.

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House in the same road I rent is typical of this. Came on the market last week for 300K asking price despite the fact that several others in the road all sat on the market for 1 to 2 years at 299K only to go for circa 240K over the Summer.

Sellers have just bought in Berks as had to move for work.

I was talking with an EA only yesterday about reluctant landlords in Swansea - they exist in their hundreds now apparently. As SPA says, they can't sell, the valuations are now lower than they paid but that is not stopping them ramping the asking prices to try and get out debt free... and only the ultra low IRs has saved them.

If rates had been normal I believe we would have seen a crash worse than the early 1990s.

Most definitely. The low rates have saved most people.

However, I doubt many of them have done anything or been able to do anything like putting some kind of insurance in place to cover them when rates do eventually rise. I bet they have not been saving hard. Most likely they will have continued living their lives as usual.

Rates will have to rise at some stage and lenders will not be offering great mortgage deals for a long time, so maybe there will be a gradual crash. Repo's will rise each time the rates increase which will drag down house prices surrounding those that are repossessed.

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Yes, pretty much so.

The accidental landlords bought at the wrong time or needed to relocate due to work, so they require a certain price for their property. The problem is that they bought and expected to sell which is the wrong thing to do. Common sense is to sell before you buy when it comes to property. Ok, some have had sales going through before buying only for their buyer to pull out for one reason or another and they have continued with their purchase. This leaves them with 2 mortgages to pay. If they can't sell, then they have no option other than renting until they can find a buyer.

Any house in any town could sell if the price is right. A lot of home owners have re-mortgaged when banks were throwing money at them when house prices were rising. This also leaves many people in a position that they are unable to sell because they need so much to cover their mortgage, yet prices have dropped leaving them in negative equity on today's valuations.

and whilst these people still remain as screwed as 3 years ago we now have an additional x million who are falling into the same position through inflation/ continued job losses, artificially inflated living costs, using up savings with the net effect that we have these owners screwed plus x million more and this x will keep increasing until the whole country is fcked rather than taking the mild medicine 10 years ago, the harsher still medicine 3 years ago and the harsher still medicine in x years. One way or another the cost of living will rebalance because debt expansion isnt possible, the UK just has successive govts hellbent on taking down the entire country, poor, middle class, pensioners, public sector, young, the lot

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Most definitely. The low rates have saved most people.

However, I doubt many of them have done anything or been able to do anything like putting some kind of insurance in place to cover them when rates do eventually rise. I bet they have not been saving hard. Most likely they will have continued living their lives as usual.

Rates will have to rise at some stage and lenders will not be offering great mortgage deals for a long time, so maybe there will be a gradual crash. Repo's will rise each time the rates increase which will drag down house prices surrounding those that are repossessed.

Low rates have delayed the problem, the gamble was somehow the economy would "recover" and the problem would go away.

It appears the magic fairy dust hasn't worked yet.

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I understand what you are saying, but many landlords especially those that bought in the past 3 years or so are unable to lower rents. They need the current rates to cover mortgages and many are unable to afford to top up rents to cover mortgaages if the difference is too large.

There are lots of accidental landlords in Swansea whom have bought a property or relocated before they have sold their own house. Due to market conditions they have had no option other than becoming landlords. These are the ones that will be the first to lose their properties when tenants are unable to pay the rent or the property becomes empty.

The professional landlords will keep their rents high because it makes good business sense. While it is so hard to gain a mortgage many people have no option, but to rent, so that means that there are many tenants which then makes it easier to raise rents due to demand. Of course if a property is empty for too long a professional landlord should be able to take a hit for a while before lowering the rent slightly or at least would negotiate the rent.

nob

you are in for such a shock

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it was better than yours mate

Sorry, but I thought this was a forum where people share their thoughts and opinions on subjects of mutual interest. If everybody put in their opinions, then maybe we could debate to a point that could be helpful rather than just resorting to childish name calling should you not agree with another posters opinion.

I assume it's because I'm an estate agent.

Is there something wrong with what I stated? If so, would you like to explain what I have said that you find wrong or offensive enough to call me a 'nob'?

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Sorry, but I thought this was a forum where people share their thoughts and opinions on subjects of mutual interest. If everybody put in their opinions, then maybe we could debate to a point that could be helpful rather than just resorting to childish name calling should you not agree with another posters opinion.

I assume it's because I'm an estate agent.

Is there something wrong with what I stated? If so, would you like to explain what I have said that you find wrong or offensive enough to call me a 'nob'?

specifically, it is the ratio between the number of words you use, and the amount of logic you employ

this is a very high number, and it is bubble-VIs illogic like this that has (1) priced me out of a normal house-buying life and (2) made this horrible credit crunch scenario come about; I am thoroughly p*ssed off that I am paying for the mistakes of the stupid, and they're too stupid to recognise logic or morals in any of this

Edited by Si1

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specifically, it is the ratio between the number of words you use, and the amount of logic you employ

this is a very high number, and it is bubble-VIs illogic like this that has (1) priced me out of a normal house-buying life and (2) made this horrible credit crunch scenario come about; I am thoroughly p*ssed off that I am paying for the mistakes of the stupid, and they're too stupid to recognise logic or morals in any of this

So, immediately I get the blame for your situation and 10's of 1000's of others similar to you. Again I assume it's because I own an estate agency.

Perhaps you should read through some of my other posts that slate many of the EA's that I compete with for a living. For what it's worth I don't own a property and am unable to afford a property that I would like to call home. I pay a rent higher than an affordable mortgage, but don't have the savings to gain such a mortgage.

I do however work on behalf of many landlords and can state reasons why they charge what they charge. This information I am happy to pass on to others, so that they have an understanding of the other side of the coin.

I also give my opinions to home owners on what I would consider to be the market value of their property and how best to market that property in order to achieve the best price.

The problem is that I do this at the same time as 2 or 3 other agents that are usually commission based on number of instructions they gain, so they can say what the vendor wants to hear.

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Si1, you are shooting at the wrong target here.

SwanseaPropertyAgents has been posting over on the Wales sub-forum for longer than I can remember and has always posted balanced and often critical posts on the Welsh housing market - the Swansea housing market in particular - and on estate agents in the Swansea area.

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So, immediately I get the blame for your situation and 10's of 1000's of others similar to you. Again I assume it's because I own an estate agency.

Perhaps you should read through some of my other posts that slate many of the EA's that I compete with for a living. For what it's worth I don't own a property and am unable to afford a property that I would like to call home. I pay a rent higher than an affordable mortgage, but don't have the savings to gain such a mortgage.

I do however work on behalf of many landlords and can state reasons why they charge what they charge. This information I am happy to pass on to others, so that they have an understanding of the other side of the coin.

I also give my opinions to home owners on what I would consider to be the market value of their property and how best to market that property in order to achieve the best price.

The problem is that I do this at the same time as 2 or 3 other agents that are usually commission based on number of instructions they gain, so they can say what the vendor wants to hear.

fair play

I have a great deal of regard for TMT, so I must trust him and say I am in the wrong

my apologies

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Si1, you are shooting at the wrong target here.

SwanseaPropertyAgents has been posting over on the Wales sub-forum for longer than I can remember and has always posted balanced and often critical posts on the Welsh housing market - the Swansea housing market in particular - and on estate agents in the Swansea area.

+1 from me. SwanseaPropertyAgents is an balanced and honest poster.

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+1 from me. SwanseaPropertyAgents is an balanced and honest poster.

I am currently birching myself with sticks from a vase which I smashed over my head in pennance

OK not quite, but I am feeling like a very naughty boy, sorry again

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The number of households classed as homeless in Wales rose 10% between June 2009 and June this year.

That rise was partly driven by an increase in people who lost accommodation that was tied to a job, or occupants who were required by a landlord to leave a rented property.

The landlord wants them out and they are apparently homeless. What a joke. Then local councils have to employ hordes of housing advisors and people to manage all the temporary accommodation properties.

They should try being homeless in the US or most any other country and compare it to wrapped in cotton wool britain.

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I am currently birching myself with sticks from a vase which I smashed over my head in pennance

OK not quite, but I am feeling like a very naughty boy, sorry again

italiamac_bottom.gif

:D

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As an "accidental" landlord on a very low rate tracker I would rather my flat sat empty for a year than cut the rent below my minimum.

When mortgage rates are so low you want a quality tennant in. Quality tennants are people that can afford prime rent and have secure jobs.

Besides, any profit you make on your BTL is taxed at 40% so all you really want to do is break even.

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Llandlords will simply have to drop their rental charges

unless they are happy to sit with an empty house and ZERO income

they are obviously charging more than the market can sustain

What disturbs me is that so called charities who are supposed to help people manage their shelter costs are actually trying to ramp prices and rents higher rather than taking the more logical approach which is to help push prices and rents lower.

I agree with your your implication that a 50% cut in taxpayer support of housing costs for those in need would not result in a 50% increase in homelessness. The more likely outcome is that the housing stock would probably remain roughly constant and landlords would suffer.

Their suffering would result in an increase in supply at much lower prices with an increase in the number of people who could then afford to buy and loosen the grip of landlords on the market.

I really wish that the so called housing charities could see the bigger picture and the net benefit of lower housing prices rather than focusing on the short term, marginal impact.

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  • 312 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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