Jump to content
House Price Crash Forum
Sign in to follow this  
The Colour

Housing Benefit Reform To Encourage Lower Rent

Recommended Posts

http://www.timesonline.co.uk/article/0,,2-2254673.html

Housing benefit reform to encourage lower rent

By Philip Webster, Political Editor

A REFORM of housing benefit to encourage tenants to opt for cheaper rents and to prevent landlords abusing the system is to be published today.

Housing benefit in the private rented sector will be scrapped and replaced with a local housing allowance that councils will set according to what is considered the average and reasonable rent in their areas. Claimants will be asked to find accommodation that costs something close to that rate. If they can find cheaper homes, they will be entitled to claim up to £15 a week of the difference for themselves.

Obviously depends on what they deem to be "average and reasonable".

Share this post


Link to post
Share on other sites

http://www.timesonline.co.uk/article/0,,2-2254673.html

Obviously depends on what they deem to be "average and reasonable".

They will get what they pay for. In Slough where I live it's the councils needing accommodation not LL's needing tenants.

It's all about supply and demand. This new book will only make more LL's want to rent privately and not to the DSS.

Share this post


Link to post
Share on other sites

A similiar system is already in place.

A lot of councils now carry out pre tenancy determinations to assess the average rent for the area so this will come as nothing new.

The thing that you miss is that if councils restrict the rents paid by housing benefit then this simply means that landlords will not accept those on benefits rather than dropping their rents (and their yields) at the say so of the council.

Share this post


Link to post
Share on other sites

A similiar system is already in place.

A lot of councils now carry out pre tenancy determinations to assess the average rent for the area so this will come as nothing new.

The thing that you miss is that if councils restrict the rents paid by housing benefit then this simply means that landlords will not accept those on benefits rather than dropping their rents (and their yields) at the say so of the council.

Exactly.

If every LL refused to drop their rent, would the councils really leave their tenants homeless?

I have a DSS tenant in my BTL but she is a friend and so I only asked for as much as the DSS will pay on her behalf.

Are you thinking what i'm thinking. She needs to get a job. Her daughter is at school now but then I doubt she would earn enough to pay rent on a 2 bed flat in a town centre location and have the council tax paid for :D

Going back to the point, councils don't dictate how much LL's ask for rent. The market does.

Share this post


Link to post
Share on other sites

Exactly.

If every LL refused to drop their rent, would the councils really leave their tenants homeless?

I have a DSS tenant in my BTL but she is a friend and so I only asked for as much as the DSS will pay on her behalf.

Are you thinking what i'm thinking. She needs to get a job. Her daughter is at school now but then I doubt she would earn enough to pay rent on a 2 bed flat in a town centre location and have the council tax paid for :D

Going back to the point, councils don't dictate how much LL's ask for rent. The market does.

Leave it empty? Ooo then the council will take control of it anyway.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.