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No Need To Panic About Housing Benefit Cuts

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http://www.ludlowthompson.com/property_news/New_rules_on_housing_benefit_what_do_London_landlords_need_to_know/article.htm?id=953

That could have a significant impact on rents in the private rental sector. If more landlords do decide to switch to private tenants as a result of the change, that will increase the supply of rental properties at the lower end of the market, pushing down rents. Downward pressure on rents could even ripple through the market to more expensive properties.

Fortunately, landlords in London are in a stronger position than in many other parts of the country. Strong employment and inward economic migration mean a steady supply of new demand for all kinds of private rental properties. London’s landlords should be keeping an eye on how the changes affect their portfolios, but there is no need to panic.

So there you go. Many hundreds of millions, maybe billions, cut from housing benefit but London property will do just fine.

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http://www.ludlowthompson.com/property_news/New_rules_on_housing_benefit_what_do_London_landlords_need_to_know/article.htm?id=953

So there you go. Many hundreds of millions, maybe billions, cut from housing benefit but London property will do just fine.

A house not a million miles from me - 4 bed, 2 bath, nice area - has been rented to HB tenants for 2 years. House has been rented out for over 20 years, always to private tenants until the current lot. Previous tenants wouldn't pay the rent increase she wanted - found a house nearby, slightly bigger, for less money.

LL had a void for at least 2 months before accepting the HB family, presumably at a reduced rent.

House has just come up for let, at rather more than it was up for last time, IIRC, but certainly not excessive compared with similar in the area. Many 4 beds are considerably more.

I checked the council website - the new rent is considerably more than HB will pay for a 4 bed.

I can't find even one 4 bed in the immediate area that HB would cover now.

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A house not a million miles from me - 4 bed, 2 bath, nice area - has been rented to HB tenants for 2 years. House has been rented out for over 20 years, always to private tenants until the current lot. Previous tenants wouldn't pay the rent increase she wanted - found a house nearby, slightly bigger, for less money.

LL had a void for at least 2 months before accepting the HB family, presumably at a reduced rent.

House has just come up for let, at rather more than it was up for last time, IIRC, but certainly not excessive compared with similar in the area. Many 4 beds are considerably more.

I checked the council website - the new rent is considerably more than HB will pay for a 4 bed.

I can't find even one 4 bed in the immediate area that HB would cover now.

Until you stop thinking of it as a 4 bed property. It is 4 properties in one. Whats your local Shared Room Rate of Local Housing Allowance?

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Until you stop thinking of it as a 4 bed property. It is 4 properties in one. Whats your local Shared Room Rate of Local Housing Allowance?

Don't think even the uber-tight LL would rent it out as 4 rooms.

But I just checked, and the 4 x single room rate would work out quite a bit less than the 1 x 4-bed house rate.

So no chance of that.

She'd need to cram 7 singles in to get what she's actually asking (non HB rate).

Edited by Mrs Bear

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Because HB has gone down?

Presumably, but don't know what the rate was pre-April. If it's gone from 50th to 30th percentile, I'd guess it was quite a bit more.

Reading between the lines she dropped the rent quite a bit last time - probably in a panic after a 2 month void - I don't think she'd have accepted HB otherwise.

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:( Why do I get this sinking feeling that the housing benefit reform will never happen? :(

It's just that I do not think that there is enough political motivation now and it will politically upset to many people.

Please can someone reassure me otherwise.

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:( Why do I get this sinking feeling that the housing benefit reform will never happen? :(

It's just that I do not think that there is enough political motivation now and it will politically upset to many people.

Please can someone reassure me otherwise.

The Tories will froth at the mouth all day long about daily mail articles about single mums renting small palaces in kensington on HB.

They will then quietly pay up everything that is demanded because the alternative is the Great Unwashed descending on Whitehall with pitchforks and lamppost rope.

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There have been so many props put up over the years:

  • SMI
  • Interest rates
  • Lengthly repossession processes introduced
  • Delayed housing benefit reforms
  • Localism bill / scrapping of housing targets

Just have a feeling that it will not materialise unless it is forced and I do not think there is anyone forcing it. They can delay it another year, then another year....

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I dont know. Never seen so many 2 bed flats for rent in my area (Exeter). Renting here used to be a good business. Now on my way back from work I pass three large blcks of flats (converted hostels or something). All three for sell. All together could be something like 20 flats me think. Some even went under the hummer and came back on market afterwards. I think I dont have to add how wonderful this view is :D

Edited by LittleSteroid

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While HMG might not be keen to crush the housing market as they were in 89-91, slashing housing benefit is such a gift to 90% of the population - particularly hard-pressed chancellors and cabinet members - that they won't back out now. They might not be lining up to stab landlords in the back, but there'll be no tears shed for them either if they are suffering.

An easy way to save billions, and maybe bring down rents for those hard working professionals.

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Acording to Rightmove "Search over a Million properties for sale"

It problem is that many people can't afford to sell for any less unless they are forced. I am still hoping reduced student numbers + reduced housing benefit topples BTL to some degree freeing up some housing stock and reducing the level of speculation.

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slashing housing benefit is such a gift to 90% of the population - particularly hard-pressed chancellors and cabinet members - that they won't back out now. They might not be lining up to stab landlords in the back, but there'll be no tears shed for them either if they are suffering.

An easy way to save billions, and maybe bring down rents for those hard working professionals.

Are the boomers voters really going to thank them? or more importantly do they think that the voters are going to thank them for it?

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Are the boomers voters really going to thank them? or more importantly do they think that the voters are going to thank them for it?

The housing benefit changes won't ever make the front pages, especially once the dippy left realise how many poorer folk will actually benefit from this. It's a minor change to the way one particular benefit is paid, no one will cry if landlords - boomer or not - miss out. The country won't cry for multiple home owners, it will be worried about saintly nurses losing their jobs etc etc

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While HMG might not be keen to crush the housing market as they were in 89-91, slashing housing benefit is such a gift to 90% of the population - particularly hard-pressed chancellors and cabinet members - that they won't back out now. They might not be lining up to stab landlords in the back, but there'll be no tears shed for them either if they are suffering.

An easy way to save billions, and maybe bring down rents for those hard working professionals.

According to the new HB rules on my council website, there's no longer any allowance for a 5 bed property (or more).

A 4 bed rate is the max.

I recall on HUTH a while ago a developer bought a 4 bed house somewhere oop north, tarted it up cheaply, and turned the dining room into a 5th bedroom. (Leaving one small reception).

Local agents then said the rental value was something like £450 pcm.

With massive grin on his face, developer said he'd already got a tenant, a woman with 7 kids, paying double that.

They didn't actually say it was HB, but I'd bet anything it was. I was spitting at the time, since it was obviously way over local market rates for the space, if not for actual number of rooms. He was getting a massive yield.

So with a bit of luck the new rules will wipe grins off the faces of a few like him. :)

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Housing and all that goes with it has lurched from one crisis to another for years and years . From boom to bust and back again many times .

This time around the crisis is on a massive scale due to the never seen before rate of debt coupled with high inflation not backed by rising pay rates. That is in the private buying market .

In the renting market in London and the south east demand is pushing rents to never seen before highs. The lack of social housing has forced the govenment to spend billions in HB , they are now running around trying to cut this .

I would not be supprised if they press ahead and in a few years time we hear that they have saved x amount of billions on HB , but have been spending x amount more on putting homeless familys in higher cost low quality Bed and Breakfast accomodation .

What ever any govenment has done they have never sorted the housing crisis and my bet is this lot won't do it either.

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Housing and all that goes with it has lurched from one crisis to another for years and years . From boom to bust and back again many times .

This time around the crisis is on a massive scale due to the never seen before rate of debt coupled with high inflation not backed by rising pay rates. That is in the private buying market .

In the renting market in London and the south east demand is pushing rents to never seen before highs. The lack of social housing has forced the govenment to spend billions in HB , they are now running around trying to cut this .

I would not be supprised if they press ahead and in a few years time we hear that they have saved x amount of billions on HB , but have been spending x amount more on putting homeless familys in higher cost low quality Bed and Breakfast accomodation .

What ever any govenment has done they have never sorted the housing crisis and my bet is this lot won't do it either.

From what I've seen, true enough. Good size one bed flats in ex LA blocks not far away (SW15) , would have gone for £800-850 a couple of years ago.

Maybe even £750 if not recently tarted up.

Now going for £950-1000, for which you could get a 2-bed not long ago.

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Saw a one bed for rent, London zone 3, advertised for £900 per month, DSS welcome, on rightmove yesterday. I presume then that LAH is still covering this amount in this area. Private rentals were about £800 a month but I guess it is all pushing up to what benefit will pay. What a benefit trap too, not many people going to be able to afford this rent on low paid work, so if they settle into the flat and want to stay, no alternative but to stay on benefit.

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. What a benefit trap too, not many people going to be able to afford this rent on low paid work, so if they settle into the flat and want to stay, no alternative but to stay on benefit.

Exactley

When you look at the situation the numbers do not add up in any shape or form , more and more people have no choice but to stay on benefits.

£900 per month rent plus at least £300 bills and then the costs to travel to work £1250-£1300 post tax money before they have bought a loaf of bread. How much would you need to earn gross to pay this and have any standard of life .

This country has got itself in a situation of ever decreasing circles.With the high housing costs more and more money needs to be taken form those working to pay for those on benefits which then pushes more and more people onto benefits.

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There have been so many props put up over the years:

  • SMI
  • Interest rates
  • Lengthly repossession processes introduced
  • Delayed housing benefit reforms
  • Localism bill / scrapping of housing targets

Just have a feeling that it will not materialise unless it is forced and I do not think there is anyone forcing it. They can delay it another year, then another year....

Can only hope the markets will force it. Or at least force the authorities to kick away all the props to so many special interest groups, so the economy can find its own way.

This has allowed the U.K. to be "the only major country where the policy debate has run in a direction that finds grounds for tolerating sustained inflation," noted Stephen Lewis, chief economist at Monument Securities in London.Rather than raising interest rates as early as August, as some analysts have predicted, the Bank of England likely will have to wait until early next year before it can afford to start tightening monetary policy. For the pound, this will be particularly damaging. Sterling, which traded at $1.67 at the end of April, fell Wednesday to $1.6165 from $1.6244 late Tuesday in New York. Low U.K. interest rates will stand out in a world where policy is being tightened in many major economies. And given the combination of low growth and high inflation, investors are hardly likely to flock to the pound.

Hard Times For Pound as Hawks Leave the Nest

MAY 18, 2011

http://online.wsj.com/article/SB10001424052748703509104576330951049619550.html

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http://www.ludlowtho...icle.htm?id=953

So there you go. Many hundreds of millions, maybe billions, cut from housing benefit but London property will do just fine.

No change HB will just shift renters and you'll have even more problems, you really think lowering HB will have any effect on price no it will not, you'll just see break ups of family units, houses that once were rented as a whole will be rented per on a per room. Immigration will keep the price nice and high, people will end up paying out of their own money to top up the HB, meaning less money to be spent on the economy.

Now what about those that work but need HB to pay the rents, it effectively means that now the worker with HB help will have to pay more from his own pocket to make up the difference, you have just added more onto the poverty list. The councils will end up with even more people to rehouse. I hope that those that havent lost their job dont lose it in the future and find that they need HB help. i wonder what would pass through their heads, what really needs to be done is social housing builds, lowering HB will cause issues and keep turning this country in to a 3rd world nation.

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Exactley

When you look at the situation the numbers do not add up in any shape or form , more and more people have no choice but to stay on benefits.

£900 per month rent plus at least £300 bills and then the costs to travel to work £1250-£1300 post tax money before they have bought a loaf of bread. How much would you need to earn gross to pay this and have any standard of life .

This country has got itself in a situation of ever decreasing circles.With the high housing costs more and more money needs to be taken form those working to pay for those on benefits which then pushes more and more people onto benefits.

Thats the problem, something needs to give, ive been saying this for years, it'll just expand like a gorden growth model now, it become too expensive to work in this country, and yet the government keeps privatising and using tax money to help those x state companies, yet they are unwilling to sort out housing for it people.

i would like the state to withdraw tax credits from the system saving us 40 billion a year that could be used to build homes create, people on this site moan about HB etc... yet they have no understanding about the real problems, but seem to follow a illogical view that, HB has cause high rents, they are just mugs that follow what is put out in the media.

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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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      • Even
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      • up 5%



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