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Landlords' £9Bn Housing Benefit 'fuelling Bubble'

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More than one third of the £25bn housing benefit bill for this tax year will find its way into private landlords' pockets, according to official figures just published.

The Department for Work and Pensions latest housing benefit costspredict the amount of housing benefit spent on privately rented accommodation - £9.5bn for 2014-15 - will rise to £10.8bn by 2018-19.

This is almost 40pc, a proportion expected to remain consistent, with the sum rising in line with the total housing benefit spend.

Lobby group Generation Rent - which represents tenants and would-be homeowners - argues this "subsidy" is encouraging the popularity of buy-to-let, propelling property prices higher and making homes less affordable for those renting. [more at link]

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10787462/Landlords-9bn-housing-benefit-fuelling-bubble.html

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Perhaps we should have a sweepstake thread, about guesses as to when the Housing Benefit will run out

Re: Generation Rent

http://www.generationrent.org/about

I can't see any statement of where else they get their funding apart from The NationwideFoundation

:unsure:

Generation Rent receives funding from the Nationwide Foundation.

The Nationwide Foundation is a registered charity (number 1065552); its main benefactor is Nationwide Building Society. Funding decisions are made by the Nationwide Foundation’s Board of Trustees, which is independent of Nationwide. Nationwide Building Society does not necessarily endorse the organisations funded by the Foundation. Instead it respects the Nationwide Foundation’s right to create its own strategy to tackle social issues.

Edited by Saving For a Space Ship

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Perhaps we should have a sweepstake thread, about guesses as to when the Housing Benefit will run out

Re: Generation Rent

http://www.generationrent.org/about

I can't see any statement of where else they get their funding apart from The NationwideFoundation

:unsure:

:lol:

All makes sense now. No wonder generation rent are calling for prices to be static at best.

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That is the way how to get great GDP numbers and growth. Imagine how the UK would be pure country if all social housing would have to be built on free council land and it woud cost just the building costs: £60k for terrace and £30k for flat

a horror ...

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As a tenant who claims no Housing Allowance/Benefit I wonder what would happen if HB/LHA or whatever it is called is stopped?

Would private, council and HA tenants begin seek cheaper homes or take the cut on the chin and reprioritise their outgoings accordingly?

Would private landlords be forced to reduce their rents?

Would house prices ultimate fall by over 50%?

Interesting to see what would happen in this scenario. :unsure:

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As a tenant who claims no Housing Allowance/Benefit I wonder what would happen if HB/LHA or whatever it is called is stopped?

Would private, council and HA tenants begin seek cheaper homes or take the cut on the chin and reprioritise their outgoings accordingly?

Would private landlords be forced to reduce their rents?

Would house prices ultimate fall by over 50%?

Interesting to see what would happen in this scenario. :unsure:

This can never happen, the governement of the day will not do it under the pretense of "but what about the poor peasants" whilst picking up most of the wasted billions in housing benefit themselves or to their buddies. Quite fantastic ruse.

Of course if you pay for your own housing your taxed on your income to fund this ruse then double f***** by paying way over the odds for your own shelter.

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So the state is the largest effective renter of private rented accommodation. Instead of using this market power to reduce rents and minimise it's the costs it provides unthinking support to the market by effectively subsidising tenants individually who then can exercise no market power.

If a private Company was in this position BTL landlords would find it very different....imagine what the average supermarket buyer would do with this sort of power.......

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:lol:

All makes sense now. No wonder generation rent are calling for prices to be static at best.

I thought that was priced out?

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Not all lenders now will allow BTL property to be let out to housing benefit recipients......of course no debt = more choices OTL own and you can let to who you want to.... ;)

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That is the way how to get great GDP numbers and growth. Imagine how the UK would be pure country if all social housing would have to be built on free council land and it woud cost just the building costs: £60k for terrace and £30k for flat

a horror ...

Yes a whole 150,000 houses per year rather than fattening up the parasites. Problem solved in 3 years. Also directly employ builders and planners etc, no need for outside building companies, consultants stealing 200kpa in fictitious fees etc. Or perhaps that will cut out the Tory heartland

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As a tenant who claims no Housing Allowance/Benefit I wonder what would happen if HB/LHA or whatever it is called is stopped?

Would private, council and HA tenants begin seek cheaper homes or take the cut on the chin and reprioritise their outgoings accordingly?

Would private landlords be forced to reduce their rents?

Would house prices ultimate fall by over 50%?

Interesting to see what would happen in this scenario. :unsure:

Rents are a function of wages and handouts, not landlord whim.

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Did anyone notice the adverts for other related articles running down the right of that article:

  • My 10 tips for buy-to-let success
  • Buy-to-let gurus reveal their formula for making millions
  • Britain's £200m buy-to-let king: 'Time to sell'
  • 'Buy-to-let replaced my salary in four years'

Along with smiling happy faces in the thumbnails of the savy rich buy-to-let investors.

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Rents are a function of wages and handouts, not landlord whim.

Government sets target rents for half the rental sector which have increased above inflation every year. HB has risen with this, it has in turn also distorted rents in the PRS and increased LHA allowances due to formulas for calculating LHA taking into account the increased target rents. Not to mention the price floors set by LHA and in turn a greater pressure on all properties by increasing the cost of the least desirable ones.

In social housing, a third of all workers now require housing benefit.

HB and LHA are mechanisms to transfer monies from the property-less to a few who own property.

£500 per household in taxes must be paid to put upwards pressure on the rents of workers by directly funding the rents of workers, subsidising landlords. A further £500+ must be paid in tax per household to fund rents of non-workers.

Social housing is too expensive and social landlords are also subsidised and allowed to charge high rents.

The consumer of housing has little ability to determine the pricing of shelter. For in most cases, he is forced to pay a certain rent, and receives a little subsidy to help him do so. In essence there is an income tax charged on workers that can easily exceed 100% and it is paid directly to their landlord, often a 'social landlord'. It is hidden by the housing benefit and wider social security system.

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Government sets target rents for half the rental sector which have increased above inflation every year. HB has risen with this, it has in turn also distorted rents in the PRS and increased LHA allowances due to formulas for calculating LHA taking into account the increased target rents. Not to mention the price floors set by LHA and in turn a greater pressure on all properties by increasing the cost of the least desirable ones.

In social housing, a third of all workers now require housing benefit.

HB and LHA are mechanisms to transfer monies from the property-less to a few who own property.

£500 per household in taxes must be paid to put upwards pressure on the rents of workers by directly funding the rents of workers, subsidising landlords. A further £500+ must be paid in tax per household to fund rents of non-workers.

Social housing is too expensive and social landlords are also subsidised and allowed to charge high rents.

The consumer of housing has little ability to determine the pricing of shelter. For in most cases, he is forced to pay a certain rent, and receives a little subsidy to help him do so. In essence there is an income tax charged on workers that can easily exceed 100% and it is paid directly to their landlord, often a 'social landlord'. It is hidden by the housing benefit and wider social security system.

You have probably seen the post on here, and my Facebook post about Tory Barnet trying to make its social housing 80% market rent. They seem unaware that the Government sets these rents, but churn at something like 7% a year, nothing to stop new tenancies being re-classified. Wo betide anyone with a Barnet tenancy loosing their job because with the benefit cap very likely to end up being evicted (depending on their family circumstances).

Mind if Kirklees did a similar thing, they would have to reduce secure tenancy rents to make them 80% of market rents! :lol:

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Government sets target rents for half the rental sector which have increased above inflation every year. HB has risen with this, it has in turn also distorted rents in the PRS and increased LHA allowances due to formulas for calculating LHA taking into account the increased target rents. Not to mention the price floors set by LHA and in turn a greater pressure on all properties by increasing the cost of the least desirable ones.

In social housing, a third of all workers now require housing benefit.

HB and LHA are mechanisms to transfer monies from the property-less to a few who own property.

£500 per household in taxes must be paid to put upwards pressure on the rents of workers by directly funding the rents of workers, subsidising landlords. A further £500+ must be paid in tax per household to fund rents of non-workers.

Social housing is too expensive and social landlords are also subsidised and allowed to charge high rents.

The consumer of housing has little ability to determine the pricing of shelter. For in most cases, he is forced to pay a certain rent, and receives a little subsidy to help him do so. In essence there is an income tax charged on workers that can easily exceed 100% and it is paid directly to their landlord, often a 'social landlord'. It is hidden by the housing benefit and wider social security system.

The LHA increases were caused by Labour's cretinous inability to do maths.

Local social housing should be linked to local incomes.

Social rents have a long way to fall.

The coallition have had a half-a4sed start at this by reducing and capping LHA.

It's going to fun to see what happens to HAs.

I notice my local one has, despite supposed economies of scale, managed to come up with social rents ~150/month higher than private sector rents in much better areas i.e. near town rather than a car trip away.

Cretins.

They did have a bed push to high the 'bedroom tax' as they called it.

So its not all sat around doing nothing.

Oh they did have a halloween themed house swap party too.

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Perhaps we should have a sweepstake thread, about guesses as to when the Housing Benefit will run out

Re: Generation Rent

http://www.generationrent.org/about

I can't see any statement of where else they get their funding apart from The NationwideFoundation

:unsure:

Available Funding ( The NationwideFoundation)

Funding is only available for projects where alternative scalable models can provide more affordable homes, however there is not an open grant programme. If you think you have a project that might fit with our strategy, please contact us to discuss further.

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Yeh lets attack Generation Rent folks and not the people using the State to hoard even more property. Yeh good idea.

Some posters on here have 'an agenda' and it most certainly isn't in the interests of an 'HPC'

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The LHA increases were caused by Labour's cretinous inability to do maths.

Local social housing should be linked to local incomes.

Social rents have a long way to fall.

The coallition have had a half-a4sed start at this by reducing and capping LHA.

It's going to fun to see what happens to HAs.

I notice my local one has, despite supposed economies of scale, managed to come up with social rents ~150/month higher than private sector rents in much better areas i.e. near town rather than a car trip away.

Cretins.

They did have a bed push to high the 'bedroom tax' as they called it.

So its not all sat around doing nothing.

Oh they did have a halloween themed house swap party too.

Yup that is to make social housing unaffordable so it becomes 'low demand'

Then it can either be demolished, in some sort of insane rent support mechanism, or the preferred option is to sell to private developers.

Numerous examples, Park Hill flats, Sheffield were low demand, but I guess you could have bid on them till you were blue in the face, and never got a single offer.

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As a tenant who claims no Housing Allowance/Benefit I wonder what would happen if HB/LHA or whatever it is called is stopped?

Would private, council and HA tenants begin seek cheaper homes or take the cut on the chin and reprioritise their outgoings accordingly?

Would private landlords be forced to reduce their rents?

Would house prices ultimate fall by over 50%?

Interesting to see what would happen in this scenario. :unsure:

Sadly unlikely to ever happen.

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They should abolish affordable rents and bring back social rents, if it was working before it should still work. Well its been a few years since HB has been lowered yet rents in the private sector are rising, many of the posters argued in favor to lower HB to bring down private rents, well its low now and the rents have gone up, your argument has failed.

What needs to be done more social housing, for UK passport holders only, anyone else not a UK passport holder should not be given a council flat, the social waiting list should be based around 85% of your life living in the UK, if you have lived under that you should not be registered.

Those non British should access private housing and no given any housing allowance based on the there 85% life allowance, this would not break any European rules as you are still allowing EU nations access to social housing but your basing the 85% rate for both UK passport holders as well so there no discrimination.

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They should abolish affordable rents and bring back social rents, if it was working before it should still work. Well its been a few years since HB has been lowered yet rents in the private sector are rising, many of the posters argued in favor to lower HB to bring down private rents, well its low now and the rents have gone up, your argument has failed.

Total spending on HB is continuing to rise rapidly. There is more taxpayer cash flooding into the private rented sector than ever before.

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Total spending on HB is continuing to rise rapidly. There is more taxpayer cash flooding into the private rented sector than ever before.

Yes, but Local housing allowance has decreased continuously for 4 years, so it looks like the number of people that claim has risen, but the amount given to each individual has decreased, this says a lot really.

People here wanted lower LHA so rents would drop, well the LHA has been dropping but rents have not which makes any claim false that HB increases rents.

So now those people need to loo at another theory.

We have lower LHA but he have higher social rents in the form of affordable rents, which means that the policy of affordable 80% market rents one of the major causes of higher housing benefit bills, private land lords are getting less but housing associations are getting more.

Affordable rents is a disaster for this country its stopping individuals from working, and also pushing people out of historical family areas, killing local community and workers.

Total spending does not mean LHA has gone up, which it hasnt, looks like more people are claiming translated into less spending in the economy.

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the number of people that claim has risen, but the amount given to each individual has decreased

How big are these decreases in LHA, tens of pounds a month? Of course a reduction that small would not have an impact on local rent levels, especially if the number of people looking for housing in the private rented sector continues to increase.

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Yes, but Local housing allowance has decreased continuously for 4 years, so it looks like the number of people that claim has risen, but the amount given to each individual has decreased, this says a lot really.

People here wanted lower LHA so rents would drop, well the LHA has been dropping but rents have not which makes any claim false that HB increases rents.

So now those people need to loo at another theory.

We have lower LHA but he have higher social rents in the form of affordable rents, which means that the policy of affordable 80% market rents one of the major causes of higher housing benefit bills, private land lords are getting less but housing associations are getting more.

Affordable rents is a disaster for this country its stopping individuals from working, and also pushing people out of historical family areas, killing local community and workers.

Total spending does not mean LHA has gone up, which it hasnt, looks like more people are claiming translated into less spending in the economy.

No that's wrong. The towns which I monitor - North + South have seen the following:

- Rents on a 3 bed 200 down from 2005 levels.

- Much higher voids. 3 beds struggle to be let.

- Very free social tenants in private rentals.

There's a few factors as well as LHA reductions at play but you can see the trend.

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