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Housing Benefit - Only £1 Billion Every 17.25 Days

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http://research.dwp.....php?page=hbctb

4.8 million on housing benefit.

Average claim £84.54 a week.

That is £410 592 000 a week.

Or £1 billion every 17 and a quarter days.

Figures were calculated using the most recent statistics.

Pay your taxes HPCersbiggrin.gif

As we all know - it all goes on 'Interest' Payments to blood sucking bankers (keeping house prices from collapsing) or (already wealthy few) Landlords

Edited by erranta

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http://research.dwp.gov.uk/asd/asd1/stats_summary/stats_summary_feb2011.pdf?x=1

Just looking at the report check out the housing benefit claimants and council tax claimants graphs on page 4!

6% increase in Social Housing Benefit, 41% Increase in Private Sector Housing Benefit

Social / Private

Nov-08 3,109,370 1,054,810

Nov-10 3,300,610 1,495,180

This must be private renters getting housing benefit, all 1.5 Million of them.

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As we all know - it all goes on 'Interest' Payments to blood sucking bankers (keeping house prices from collapsing) or (already wealthy few) Landlords

+ 1

And the Labour party is against the cuts... Idiots. No, demagogues.

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6% increase in Social Housing Benefit, 41% Increase in Private Sector Housing Benefit

Social / Private

Nov-08 3,109,370 1,054,810

Nov-10 3,300,610 1,495,180

This must be private renters getting housing benefit, all 1.5 Million of them.

I did not look in as much detail.

If you look over at the other table, the rise was in those under 65, the amounts in the over 65 category did not keep up with 'demographic' inflation!

The massive amounts of people moving onto claiming housing benefit in the private rented sector occurred almost entirely in the working age population!

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As we all know - it all goes on 'Interest' Payments to blood sucking bankers (keeping house prices from collapsing) or (already wealthy few) Landlords

Are you saying that in Britain it isn't appropriate to have a tax that everyone has to pay, and its sole purpose is to transfer £30bn or so to landlords? Surely landlords as a group are the most deserving sector of the populace?

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surely the biggest issue must be how they determine how much housing benfit to pay.

if the government always pays the "market rate" then this props up the rental market and it is the government causing high rental yields.

if instead they say everyone gets X amount and no more, this will keep prices down.

there are 23 million households in the UK and if 4.8 million get paid housing benefit, the government has the power to keep rents low if it wanted to since it has what is essentially a monopoly on the rental market.

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surely the biggest issue must be how they determine how much housing benfit to pay.

if the government always pays the "market rate" then this props up the rental market and it is the government causing high rental yields.

if instead they say everyone gets X amount and no more, this will keep prices down.

there are 23 million households in the UK and if 4.8 million get paid housing benefit, the government has the power to keep rents low if it wanted to since it has what is essentially a monopoly on the rental market.

Your talking before BR.

And by BR I don't mean that chuffing tax rate they put you on when you finally gain minimum wage employment. I'm on about BR- Before Repossession.

We are a majority mortgage country you see. The first ever to exist!

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Going on those figures, it costs every adult(not household, adult) not in receipt of HB ~£70/month to pay for those that do receive it.

My household could sure use £140 extra/month at the moment. This is JUST the HB component.

Yes, but are you a Landlord? It is only Landlords that qualify for a share of this cash...

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surely the biggest issue must be how they determine how much housing benfit to pay.

if the government always pays the "market rate" then this props up the rental market and it is the government causing high rental yields.

if instead they say everyone gets X amount and no more, this will keep prices down.

there are 23 million households in the UK and if 4.8 million get paid housing benefit, the government has the power to keep rents low if it wanted to since it has what is essentially a monopoly on the rental market.

Exactly. The Government could use their bargaining power to negotiate rents on behalf of their clients and half them overnight. It might cause a few BTL landlords to go to the wall and default on the mortgage though. Mind you as half the banks are effectively nationalised then the BTL landlords properties would then become Government owned social housing.

Less private landlords and more social housing. What's not to like?

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HB props up landlaords, which prop up asset prices, which prop up the loans secured on them, which prop up the banks, which prop up the banking system, which prop up the economy which is paid by people like you and me.

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HB props up landlaords, which prop up asset prices, which prop up the loans secured on them, which prop up the banks, which prop up the banking system, which prop up the economy which is paid by people like you and me.

:lol: Brilliant post MS.

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I see what you mean, no I'm not a LL. I should have phrased that better:

We sure could do with that £140 not leaving our pockets this month..

Sorry, not how it works. You are a not a wealthy landlord and so are not entitled to the cash. Do you honestly think that anyone other than a landlord should get £140 / month.

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Interesting how fast it rising, looked like a good 500-600k added just over the last 2 years.

I figure in time most of the population will be on housing benefit and social assistance. It goes with my theory that automation is replacing more and more jobs, and a surplus labour pool is driving wages down to nothing. In that economy only the state can pay for things for people. Whether it is healthcare, dental, food, housing, transportation etc.. People are becoming wards of the state.

Realistically with today's low paid, unstable, no benefit jobs.. people would not be able to consistently pay a mortgage or even rent. For periods they might be able to, but not every payment.

It makes me think building a BTL empire is not such a bad idea, if prices correct enough. Basically there is an infinite bid from the government. And yes they will outright stea the money from average people who still make some money, and give it to you.

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What do we actually get for this money?

I mean, the people who collect the rent paid by housing benefit, what do they actually do in return?

Is it nothing? It is isn't it.

What is the market price of having nothing done?

Is it nothing?

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6% increase in Social Housing Benefit, 41% Increase in Private Sector Housing Benefit

Social / Private

Nov-08 3,109,370 1,054,810

Nov-10 3,300,610 1,495,180

This must be private renters getting housing benefit, all 1.5 Million of them.

DCLG 2009 statistics (latest available as 2010 not yet published)

3.8 million social renters;

3.1 million private renters.

joining up the 2 sets gives:

i.e. 86% of social renters claim HB

i.e. 48% of private renters claim HB

This means that the government changes/cuts (cap and 30th percentile) to HB should have a massive (downward) effect on the rental market.

With a probability of fried BTL owners in due time.

There area fair number of properties London where the rent will only cover 50% of the IO mortgage payments (assuming IR @ 5%) if you believe the EA valuations...

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DCLG 2009 statistics (latest available as 2010 not yet published)

3.8 million social renters;

3.1 million private renters.

joining up the 2 sets gives:

i.e. 86% of social renters claim HB

i.e. 48% of private renters claim HB

This means that the government changes/cuts (cap and 30th percentile) to HB should have a massive (downward) effect on the rental market.

With a probability of fried BTL owners in due time.

There area fair number of properties London where the rent will only cover 50% of the IO mortgage payments (assuming IR @ 5%) if you believe the EA valuations...

In my area the 30th percentile is only 5% cheaper than the 50th percentile - according to the local council + letting agents, of course.

It will help, but it will not be huge, unfortunately.

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Don't forget the state owns the public housing, so 3/4 of HB payments are churned back to the state as rent. The other quarter goes to banks via private landlords, but the banks are mainly owned by the state was well.

<_<

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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% +
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