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Ask questions about what the changes to benefits mean in the budget.

Eh? Confused.
Does that mean that if local average rent is £700 a month they'd pay 30% of that?
And what does that mean for those on Income Support?
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Comments

  • It means that at current they take the average cost for LHA calculations, so roughly half of available properties should be at or below the LHA rate. But they will take the 30% point from 2011/12. So roughly 3 in 10 rented properties will be at or below the LHA rate.
  • Killmark
    Killmark Posts: 313 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Eh? Confused.
    Does that mean that if local average rent is £700 a month they'd pay 30% of that?
    And what does that mean for those on Income Support?

    Basically it means that for people in expensive area's will have to think about relocating, or making up the shortfall.

    Bottom line is if your in private rent and getting LHA then you may have problems.

    The LHA in my area is why rents are so high, so for some it could be a good thing.
  • I usually get £576 3 bedroomed LHA rate but only got £526 this month for some reason.

    The problem is where I live you can only get a 2 bedroomed house for that amount of money. My 2 son's are also autistic & can't share a bedroom without killing each other so I actually need a 4 bed house which costs £850 plus a month.

    The only place I could afford to live for £576 is a 3 bed house on the roughest council estate on the opposite side of town miles away from my kids school.

    I have to top up my rent which is £925 pcm with my 2 son's DLA money already.

    Will everyone's LHA be changing or will it only effect people that live in London etc?
    I'd rather regret the things I've done than regret the things I haven't done.
    Lucille Ball
  • I usually get £576 3 bedroomed LHA rate but only got £526 this month for some reason.

    The problem is where I live you can only get a 2 bedroomed house for that amount of money. My 2 son's are also autistic & can't share a bedroom without killing each other so I actually need a 4 bed house which costs £850 plus a month.

    The only place I could afford to live for £576 is a 3 bed house on the roughest council estate on the opposite side of town miles away from my kids school.

    I have to top up my rent which is £925 pcm with my 2 son's DLA money already.

    Will everyone's LHA be changing or will it only effect people that live in London etc?

    LHA rates are set at the AVERAGE cost of a property of that size in the broad market rent area, so you shouldn't have the problems you describe.
  • lovetowinacar
    lovetowinacar Posts: 1,949 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Killmark wrote: »
    Basically it means that for people in expensive area's will have to think about relocating, or making up the shortfall.

    Bottom line is if your in private rent and getting LHA then you may have problems.

    The LHA in my area is why rents are so high, so for some it could be a good thing.

    Maybe some should consider moving - why should people pick really expensive areas and then expect the taxpayer to pay for them - hopefully this will drive private rents downwards as well since many landlords are VERY GREEDY and charge as much as they think they can get away with

    We have all heard of the family who occupy a large pad in london paid by LHA - they will have to consider moving - yipee they should - at least some good news some of the blatant abuses are being taken care of but many more not yet touched
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    LHA rates are set at the AVERAGE cost of a property of that size in the broad market rent area, so you shouldn't have the problems you describe.

    This is not strictly correct. The figure used is the median as opposed to the mean, and any rents which the Rent Officer considers to be particularly high or low are excluded from the calculation.
    Gone ... or have I?
  • Killmark
    Killmark Posts: 313 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Maybe some should consider moving - why should people pick really expensive areas and then expect the taxpayer to pay for them - hopefully this will drive private rents downwards as well since many landlords are VERY GREEDY and charge as much as they think they can get away with.

    This is why I wholeheartedly agree with this change.
  • Killmark wrote: »
    This is why I wholeheartedly agree with this change.

    You think ghettoising the poor is a good thing?
  • LHA rates are set at the AVERAGE cost of a property of that size in the broad market rent area, so you shouldn't have the problems you describe.

    Our LHA rate is not just based on our town though but neighbouring towns which are cheaper to live in than mine.

    I can assure you that in my town you can't rent a 3 bedhouse for less than £600 unless it's on a council estate.
    I'd rather regret the things I've done than regret the things I haven't done.
    Lucille Ball
  • Maybe some should consider moving - why should people pick really expensive areas and then expect the taxpayer to pay for them - hopefully this will drive private rents downwards as well since many landlords are VERY GREEDY and charge as much as they think they can get away with

    We have all heard of the family who occupy a large pad in london paid by LHA - they will have to consider moving - yipee they should - at least some good news some of the blatant abuses are being taken care of but many more not yet touched

    I live in Northamptonshire which isn't an expensive area although my town is probably the most expensive in our area & I prefer /choose to live on a private estate as this is where we lived when I split from my husband & didn't want to disrupt the kids from their friends/school.

    I could move to one of the 3 council estates & rent a cheaper house but again I choose to substidize my rent as I wouldn't subject my kids to that again.
    I'd rather regret the things I've done than regret the things I haven't done.
    Lucille Ball
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