Monday, October 18, 2010

Buy-To-Let gets more of our money than the Army and Navy

Lord Freud: Housing benefit landlords are ripping off the system

"Private landlords will pocket almost £8.5bn from the taxpayer this year through housing benefit - more than a third of the total £21.5bn bill, according to figures from the Department for Work & Pensions (DWP) ... The housing benefit bill has exploded in the past decade, rising at 50pc above the rate of inflation to £21.5bn as both claimants and rents have increased, and is now larger than the bill for the Army and Royal Navy combined. Each working adult is contributing £689 a year."

Posted by quiet guy @ 01:18 AM (1382 views)
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7 thoughts on “Buy-To-Let gets more of our money than the Army and Navy

  • Scrap all of them today.

    They create more trouble than what they are worth.

    The reason why we need these is only due to having them in the first place.

    Now that’s a cutback crunchy would claim as a profit.

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  • Private Landlords claim rent on property shock…. well DUH?!?!

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  • Sellers will generally seek the highest price the market will bear, unless they have competition or think they can get higher total income by selling at a lower price (something the media industry should learn).

    What people like him should be asking is: why did the government, at all levels, not negotiate better deals? This sounds rather like the observations of the Green report!

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  • Well, thats more money for the banks then.. At an average of 66% LTV and 90% being interest only that is a lost of intrest payments for the banks!

    If we cut housing benifit and cause reposessions, not only will the banks have to write down losses on the overpriced investments they will also lose these interest payments. A double whammy for the banks then.

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  • khards – exactly why it wont happen then…

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  • mark wadsworth says:

    What Khards says. HB for private landlords is direct subsidies to land ownership and indirect subsidies for banks.

    Just think how many units of social housing you could knock out for £8.5 billion a year. Call it £50,000 each build cost = 170,000 a year. As long as they can get £30 or £40 a week in rent, they’ll be self-financing in future.

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  • Well said MW – its a no brainer.

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