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Housing Benefit Rates Changing

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http://www.landlordzone.co.uk/forums/showthread.php?35515-HB-LHA-rates-rules-changing-from-1-April-2011

The good ship Housing Benefit Landlord is crashing headlong into the reality iceberg that is fewer tenant pounds chasing the same number of properties.

Does IronsE11 post on here? Sounds like he/she would fit right in.

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These HB changes have been in place for 6 months now. I'm not sure they've had the downward effect on rents that I would have hoped for

You're making the mistake that most people are - assuming that the 'cuts' have all happened.

Public sector spending is due for quite significant reductions over the next 4 years, each year - which is the furthest ahead the government to.

There will be cuts next year, the year after and the year after that.

In reality, the scale of the cuts will be increased. No choice.

And they'll go on for the next 10 years - give or take 3 years.

This all assumes that a UK government is in charge of what is an orderly default.

If we default - and thats the most likely outcome (80% deficit, increasing at 10% a year) - then the outcome will be grim.

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You're making the mistake that most people are - assuming that the 'cuts' have all happened.

Public sector spending is due for quite significant reductions over the next 4 years, each year - which is the furthest ahead the government to.

There will be cuts next year, the year after and the year after that.

In reality, the scale of the cuts will be increased. No choice.

And they'll go on for the next 10 years - give or take 3 years.

This all assumes that a UK government is in charge of what is an orderly default.

If we default - and thats the most likely outcome (80% deficit, increasing at 10% a year) - then the outcome will be grim.

How can the UK default when it has the ability to print as much money as it needs?

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Weekly LHA rate for November 2011

Central Greater Manchester BRMA

Shared Accommodation Rate:

£60.00 per week -5

One Bedroom Rate:

£92.31 per week -11.65

Two Bedrooms Rate:

£110.77 per week -16.15

Three Bedrooms Rate:

£131.54 per week -10.84

Four Bedrooms Rate:

£173.08 per week - 11.54

5 bedroom rate is now not available so is actually -57.69

Weekly LHA rate for January 2011

Shared Accommodation Rate:

£65.00 per week

One Bedroom Rate:

£103.96 per week

Two Bedrooms Rate:

£126.92 per week

Three Bedrooms Rate:

£142.38 per week

Four Bedrooms Rate:

£184.62 per week

Five Bedrooms Rate:

£230.77 per week

https://lha-direct.voa.gov.uk/search.aspx

You can play with the dates on there

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How can the UK default when it has the ability to print as much money as it needs?

It becomes an inflationary default, provided foreigners can be persuaded to take increasingly worthless £££

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These HB changes have been in place for 6 months now. I'm not sure they've had the downward effect on rents that I would have hoped for

Yes, but it's complicated by the fact that the lower rents (30th percentile vs median) only apply to new claimants at the moment. Existing claimants have a transition period before their LHA rates are cut. From reading the thread, I believe everybody will be on the new reduced rate by 21 months after April 2011 (i.e. Jan 2013).

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Yes, but it's complicated by the fact that the lower rents (30th percentile vs median) only apply to new claimants at the moment. Existing claimants have a transition period before their LHA rates are cut. From reading the thread, I believe everybody will be on the new reduced rate by 21 months after April 2011 (i.e. Jan 2013).

As far as I understand it, different things are being cut at different points: Maximum (cap), the 30th percentile and the under 35 allowance. These are being cut at different times, from early this year to early 2012. If you are already on existing LHA, then the cut(s) that affects you takes place on the 'aniversary' of your claim (ie the date you first claimed) - so potentially up to a year from when the cut was introduced. So whilst some cuts have been brought in, they won't all be in effect until Jan 2013 as you say.

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Weekly LHA rate for November 2011

Central Greater Manchester BRMA

Shared Accommodation Rate:

£60.00 per week -5

One Bedroom Rate:

£92.31 per week -11.65

Two Bedrooms Rate:

£110.77 per week -16.15

Three Bedrooms Rate:

£131.54 per week -10.84

Four Bedrooms Rate:

£173.08 per week - 11.54

5 bedroom rate is now not available so is actually -57.69

Weekly LHA rate for January 2011

Shared Accommodation Rate:

£65.00 per week

One Bedroom Rate:

£103.96 per week

Two Bedrooms Rate:

£126.92 per week

Three Bedrooms Rate:

£142.38 per week

Four Bedrooms Rate:

£184.62 per week

Five Bedrooms Rate:

£230.77 per week

https://lha-direct.voa.gov.uk/search.aspx

You can play with the dates on there

Are you saying they've now put them much higher than before the 'cuts'???

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Nah, he would get roasted alive. Public sector administrator with a know it all attitude! :-)

But cynical with it. I liked their comment about seeing some rents double overnight when the LHA scheme started. Puts to bed the arguments about LHA not putting an artificial floor under rents. Scandalous really, but why did such stories not hit the media in terms of their role in encouraging BTL and indirectly inflating prices at the lower end of the market.

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HPC

I think the single person change is going to be the big one that pulls everything else down. Just like house prices. The bottom of the market is leading the way.

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that thread is full of innumerate illiterate leveraged c0cks and I so hope they all go bust

This one seems pretty reasonable

http://www.landlordzone.co.uk/forums/showthread.php?35515-HB-LHA-rates-rules-changing-from-1-April-2011&p=278273#post278273

Reduction in LHA payments is all part of the government MASTERPLAN to reduce living costs in this country (and the value of property). I dont blame them. This country is on its a@se and unless we can improve and reduce the costs of our manufacturing base there's no hope.

Landlords are an easy target for for reducing costs. My local council have already ask us what we plan to do when LHA is reduced.

Yes the LHA is a joke, set up by a joke government, its designed to keep the drug/alcohol and other 'general problems' of the streets, because if your tenant is a problem you can get your money direct, Happy days.

If your tenant is keeping the money you need to prove it to HB and fingers crossed they will pay you direct. Otherwise evict, only takes a few years.

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Thanks for that link, very enlightening!

Jan 2011

Shared Accommodation Rate: £77.50 per week

One Bedroom Rate: £138.46 per week

Two Bedrooms Rate: £155.77 per week (£675pm)

Three Bedrooms Rate: £184.62 per week

Four Bedrooms Rate: £253.85 per week

Five Bedrooms Rate: £346.15 per week

Nov 2011

Shared Accommodation Rate: £72.73 per week

One Bedroom Rate: £121.15 per week

Two Bedrooms Rate: £132.69 per week (£575pm, -£100pm)

Three Bedrooms Rate: £150.00 per week

Four Bedrooms Rate: £184.62 per week

I know from the area that most 2 bedders were asking £700+, usually £750 at the beginning of the year so it'll be interesting if asking prices start to come down now. I'd suspect they were being priced just enough above the LHA rate to deter HB...

Edited by efdemin

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You'll like mine (inner south west London)

That said, despite making a very good wage and paying a massive amount of tax, I spend £240/week on a perfectly good 1 bed flat.

Jan 2011

Shared Accommodation Rate £115.38 per week

One Bedroom Rate £250.00 per week

Two Bedrooms Rate £311.54 per week

Three Bedrooms Rate £385.00 per week

Four Bedrooms Rate £530.39 per week

Five Bedrooms Rate £849.23 per week

Nov 2011

Shared Accommodation Rate £85.38 per week (-26%)

One Bedroom Rate £219.23 per week (-12.5%)

Two Bedrooms Rate £285.00 per week (-8.5%)

Three Bedrooms Rate £340.00 per week (-11.5%)

Four Bedrooms Rate £400.00 per week (-24.5%)

Five Bedrooms Rate: (-53%)

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You'll like mine (inner south west London)

That said, despite making a very good wage and paying a massive amount of tax, I spend £240/week on a perfectly good 1 bed flat.

Jan 2011

Shared Accommodation Rate £115.38 per week

One Bedroom Rate £250.00 per week

Two Bedrooms Rate £311.54 per week

Three Bedrooms Rate £385.00 per week

Four Bedrooms Rate £530.39 per week

Five Bedrooms Rate £849.23 per week

Nov 2011

Shared Accommodation Rate £85.38 per week (-26%)

One Bedroom Rate £219.23 per week (-12.5%)

Two Bedrooms Rate £285.00 per week (-8.5%)

Three Bedrooms Rate £340.00 per week (-11.5%)

Four Bedrooms Rate £400.00 per week (-24.5%)

Five Bedrooms Rate: (-53%)

The sums are mind boggling in London.

A close family member of mine is (as a frothing leftie) both a vocal opponent of high housing costs, and a visceral supporter of high housing benefit in its current form. He is not a BTLer or anything. Weird, eh?

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The sums are mind boggling in London.

A close family member of mine is (as a frothing leftie) both a vocal opponent of high housing costs, and a visceral supporter of high housing benefit in its current form. He is not a BTLer or anything. Weird, eh?

A great deal of the (frothing or moderate) lefty thinking I can understand (if not often agree), but the HB thing is crazy!!!!

They're arguing that someone who doesn't work should be given 90k a year to rent a house that someone earning less than 200k/year couldn't dream of. It's totally crazy.

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http://www.landlordz...om-1-April-2011

The good ship Housing Benefit Landlord is crashing headlong into the reality iceberg that is fewer tenant pounds chasing the same number of properties.

Does IronsE11 post on here? Sounds like he/she would fit right in.

It's the sound of a lot of pennies stuck in the coin-slot.

"If the HB tenant can't pay the rent, then I'll just put a section 21 on them and get professionals in as tenants instead."

Very few, if any, seem to grasp the idea that they are just as dependent on the government for taxpayers' money handouts and the tenants that they clearly despise.

Edited by Diver Dan

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A great deal of the (frothing or moderate) lefty thinking I can understand (if not often agree), but the HB thing is crazy!!!!

They're arguing that someone who doesn't work should be given 90k a year to rent a house that someone earning less than 200k/year couldn't dream of. It's totally crazy.

Yeah, basically they told me that no amount of taxpayers' money was too small to throw at the problem if it ensured no-one slipped the net. ie, they couldn't care less about fraud so long as every genuine person was covered. One of them fancies running for office at some point btw.

I asked where the morality was in taking money from low paid workers in Stockport, Carlisle and Gosport etc to give to people who choose to live/remain in a region where their chosen career cannot pay a wage commensurate with the cost of living. They said that, in essense, it's people's 'right' to live wherever they choose, irrespective of such trivialities as the costs involved, even, it seems, if in exercising that right they materially impact the quality of life of others who wouldn't do likewise because they reasonably conclude that they cannot afford it. Their disdain for those that live in the provinces is complete, which is an interesting trait to throw into the mix as a supposed champion of all things fairness. I'm of the opinion that most left-leaning people are not as overtly nuts as this pair, albeit most show some similar traits to a lesser degree, eg little respect for taxpayers' money or where it comes from, an overarching drive for equality at any cost(those entering higher education in 2012 might like to ponder the effect of that strategy on their own future finances), basic denial of the obvious if it does not fit with either of the previous two traits. All three are alive and kicking in my family members when it comes to HB.

If only they would read that page from the LL's thread posted at the top of this thread, but they will not.

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It's the sound of a lot of pennies stuck in the coin-slot.

"If the HB tenant can't pay the rent, then I'll just put a section 21 on them and get professionals in as tenants instead."

Very few, if any, seem to grasp the idea that they are just as dependent on the government for taxpayers' money handouts and the tenants that they clearly despise.

Yup. They think they are in control because it's their business, but the reality is as you say. If their business model worked so well for professionals, why would they bother with the HB claimants, given they appear to be less reliable regarding payment (assuming it is not paid directly to the LL), [assumption] may treat the place with less respect [\assumption], more hassle with paperwork etc. If anything, professionals ought to command a lower rent to represent to reduction in these risks/problems.

The sooner some of these people get cleaned out the better, if a tenner a week makes a critical difference to your business model it's only a matter of time anyway.

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  • 276 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
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      • up 5%



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