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ItsColdUpHere

The Existence Of High Levels Of Housing Benefit = An Increase In Landlord Owned Properties

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I have a theory:

The existence of high levels of housing benefit will automatically mean that many more houses end up being owned by landlords, as a landlord can service a "rent plus HB" mortgage, whereas the renter could only afford a mortgage at his rent level for the same house. So the landlord can always outbid the renter, as only he has access to HB.

E.g. if a man can only afford to pay £500 rent and gets an additional £300 in HB for to pay £800 to rent a certain house, he could only afford a £500 a month mortgage to buy that house but the landlord can cover an £800 a month mortgage FOR THE SAME HOUSE.

So if I'm right, in London its a mathematical certainty that the percentage of renters will grow, simply because of housing benefit.

I'm normaly not given to conspiracy theories, but (if I am right) I'm guessing I'm not the first to think of this, so it might not be a side effect, it could be the whole idea...

Edited by ItsColdUpHere

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The vote is in - total indifference.

Which suggests its rubbish.

Oh well :-)

The problem is that you're stating the obvious.

Housing Benefit is a horrible use of government money. It takes housing from the working poor and gives it to the non-working poor, while lining the pockets of landlords.

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Guest eight

The problem is that you're stating the obvious.

Housing Benefit is a horrible use of government money. It takes housing from the working poor and gives it to the non-working poor, while lining the pockets of landlords.

It also sets a minimum floor under house prices. Probably what's stopping houses in former pit villages returning to their pre-boom prices of £15K-£20K.

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I have another theory.

Speculation in house prices leads to high levels of BTL and an exorbitant Housing Benefit Bill. WTF are we doing supporting the former two and attacking the latter ?

Chickens & Eggs...

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It also sets a minimum floor under house prices. Probably what's stopping houses in former pit villages returning to their pre-boom prices of £15K-£20K.

Northern Ireland blows your "probably" clean out the water!

60% + price reductions with no housing benefit restrictions applied either!

The elites are letting the market over there find its own price

- whilst corruptly manipulating prices like hell in rest of the UK

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If the government were to give me, for free, £500 to play poker, I'm going to have a go even if I have never played it before. I have nothing to lose. Housing benefit acts as a guaranteed cushion.

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You're right.

As far as London and the South East is concerned there'll be no meaningful fall in nominal house prices without three government initiated actions,

1. Relax planning regulations, to encourage more housebuilding

2. Reduce housing benefits, in practise this will mean freezing them while inflation does the hard work of bringing them down

3. Grant greater security of tenure to renters, to dissuade amateur BTL landlords

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  • 242 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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