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Housing Benefit Cuts Deter Landlords From Letting

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Colin Bryan, a Sheffield-based landlord, who rents 35 properties to benefit recipients told BBC Radio 4's World at One programme that "the sums no longer add up."

Mr Bryan believes that interest rates, currently 0.5%, are bound to go up in the next 18 months, increasing his mortgage repayments just as his income from tenants will be falling. Therefore he will no longer rent out any of his properties to housing benefit claimants.

http://www.bbc.co.uk/news/uk-12937116

So were are all these landlords going to get all their NON housing benifit claimants from, they know the housing benifits have fueled the boom and are holding house prices high,

The game is up.

Edited by awaytogo

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Therefore he will no longer rent out any of his properties to housing benefit claimants.

Corrected - don't even try to pretend you'll be able to rent to private tenants. If you could have done that, you would have already.

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Colin Bryan, a Sheffield-based landlord, who rents 35 properties to benefit recipients told BBC Radio 4's World at One programme that "the sums no longer add up."

...tell him to sell up...simples..... :)

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Look at this research by the DWP into Housing Benefit and low income working households. Most private sector landlords already choose not to let to Housing Benefit claimants, in general only the lowest quality private sector housing is available to HB claimants.

http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep698.pdf

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The game isnt up, they are shifting to others that will pay the price, some of you said a reduction in HB will reduce rents, i said no the uk has too much demand for housing landlords will look at other paths. Reducing HB will have negative economic effects to this country, because nothing was done to balance it out.

This is what the government doesnt want to happen, people will pay the rents they'll just not spend on the economy and thats bad.

Edited by crash2006

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Excellent!

So if he's not going to rent them to benefit claimants as it doesn't add up is he going to sell them?

Why would he sell if there are many others that'll pay. the UK people have been stuffed again by governments, the yhavent been building to keep up with demand thats the problem and building is the solution.

Edited by crash2006

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Hang on a mo! i know it's here somewhere !

If I could just.....

....remember.....

....where I.....

...put it....

AHA ! Here it is!...

worlds-smallest-violin.jpg

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Colin Bryan, a Sheffield-based landlord, who rents 35 properties to benefit recipients told BBC Radio 4's World at One programme that "the sums no longer add up."

Mr Bryan believes that interest rates, currently 0.5%, are bound to go up in the next 18 months, increasing his mortgage repayments just as his income from tenants will be falling. Therefore he will no longer rent out any of his properties to housing benefit claimants.

http://www.bbc.co.uk/news/uk-12937116

So were are all these landlords going to get all their NON housing benifit claimants from, they know the housing benifits have fueled the boom and are holding house prices high,

The game is up.

It'd be interesting to know what yield he's getting at the moment.

I've seen stacks of LLs on HUTH who've bought somewhere relatively cheaply, done it up to a basic standard and ended up with a yield as high as 9%.

They never actually say it's HB tenants (often waiting to move in before they've even finished the work) , but sometimes it's pretty obvious., e.g. single mother with 7 kids, and rent of around double what the local EAs were quoting for a private rental, because he'd converted a dining room into a 5th bedroom. Thus leaving one small living room for a family of 8.

No wonder that particular LL was grinning his face off at his 9% yield.

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Why would he sell if there are many others that'll pay. the UK people have been stuffed again by governments, the yhavent been building to keep up with demand thats the problem and building is the solution.

you're basing this analysis on your first assumption, which was wrong, therefore both are wrong. ;)

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The game isnt up, they are shifting to others that will pay the price, some of you said a reduction in HB will reduce rents, i said no the uk has too much demand for housing landlords will look at other paths. Reducing HB will have negative economic effects to this country, because nothing was done to balance it out.

This is what the government doesnt want to happen, people will pay the rents they'll just not spend on the economy and thats bad.

I disagree. The rental market is less driven by debt (in the way the purchase market is) and will instead tend towards the disposable income available to pay.

With HBs dropping and other costs rising, while wages are stagnant, it's impossible for rents to increase.

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So that's 35 properties extra on the private rented sector in Sheffield?

Fab. Every little helps.

Of course will he be giving all his tenants the correct notice etc? Hope he doesn't require court costs or repairs after disgruntled people have left.

Edited by SarahBell

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I disagree. The rental market is less driven by debt (in the way the purchase market is) and will instead tend towards the disposable income available to pay.

With HBs dropping and other costs rising, while wages are stagnant, it's impossible for rents to increase.

no,no the poor people will all be made homeless unless we keep paying, don't you understand we must pay. :o

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Why would he sell if there are many others that'll pay. the UK people have been stuffed again by governments, the yhavent been building to keep up with demand thats the problem and building is the solution.

The sky high rents in low rate area,s are going to reduce, a lot of private tenants could not afford to rent as housing benifits were that high it was benificial for landlords to rent to housing benifit claimants.

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you're basing this analysis on your first assumption, which was wrong, therefore both are wrong. ;)

Never wrong London foreign workers are willing to live 2+ to a room, and they will pay it because most dont pay taxes.

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REITs to swallow up individual landlords like him?

Osborne just cut the SDLT for them to buy portfolios like his and reduced their other tax.

Yep, thats what will happen, i published on budget day about tax reduction. People in this country are just living in a farm, they no longer have direct choice of life.

Edited by crash2006

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Corrected - don't even try to pretend you'll be able to rent to private tenants. If you could have done that, you would have already.

IS there 35 tennants in Sheffield not on housing benifit :lol:

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I disagree. The rental market is less driven by debt (in the way the purchase market is) and will instead tend towards the disposable income available to pay.

With HBs dropping and other costs rising, while wages are stagnant, it's impossible for rents to increase.

Rents can stay the same, i never said rents will increase, its the housing benefits payments that's decreasing not the rents. You have 2 options look for somewhere else to live, one is move out and have added costs like lose of all or partial deposit, moving costs, etc.. or stay and pay a bit more meaning reducing your spending the economy, for families its even worse people will pay more rents and spend less as they dont want to disrupt their kids education etc..

Come back to me in 6 months and tell me if rents have reduced as much as you hope, come back to me in 6 months and tell me economic activity has slowed down even more.

Edited by crash2006

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doesn't really matter tbh the ponzi is being uncovered bit by bit, they are just dragging it out for as long as possible, end result will be the same. :rolleyes:

homes purchased by companies because of tax reductions is the new MBS of the banking world, welcome to a complete (ock up in the housing market.

Edited by crash2006

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Rents can stay the same, i never said rents will increase, its the housing benefits payments that's decreasing not the rents. If you have 2 options look for somewhere else to live every come back to me in 6 months and tell me if rents have reduced as much as you hope, and come back to me in 6 months and tell me economic activity has slowed down even more.

what exactly are you saying?

you must be a financial advisor B)

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  • 311 Brexit, House prices and Summer 2020

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      • down 5% +
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