New Housing Benefit cuts: what effect will they have?

chucky

epz wrote: »

I haven't really confirmed this more than the 1st search on google but this seems like it could be pretty brutal for some low end BTL'ers.

pretty brutal?? dress it up why don't you

doubt it will have much impact... what's going to cause more pain for tenants and maybe landlords is the reduction in disposable income across the board.

rents will be less than inflation for at least the next 12-24 months i think

bendix

The effect is that it will stop people taking the !!!!. It's well known that landlords and tenants conspire to push up rents, which is then paid in Housing Benefits, with the two sides then splitting the proceeds.

It's just stealing from you and me, when this happens.

About time this was addressed. Not a moment too soon.

Raggs_2

If you can still get 1200 a month for 2 bedrooms and around 1400 a month for 3 bedroom, then you still don't need to work to live somewhere nice. It just means you no longer get the 4500 a month for a manor in Surrey that people seemed to be able to claim before.

chucky

bendix wrote: »

The effect is that it will stop people taking the !!!!. It's well known that landlords and tenants conspire to push up rents, which is then paid in Housing Benefits, with the two sides then splitting the proceeds.

It's just stealing from you and me, when this happens.

About time this was addressed. Not a moment too soon.

lol - easy there White Horse, sorry i mean Bendix!!!

you are of course right Bendix but within these changes it will probably hurt people that shouldn't be hurt by these reductions.
we must have some sympathy for these people.

bendix

With the greatest of respect, chucky, you can't find a four bedroom house to rent for under 1700 a month, you aren't trying hard enough. Move further away - it's simple.

I live in Westminster. It might be tough to find a private rent for that price in Notting Hill, but moving 2miles to Westbourn Grove or Willesden - easy as anything.

When oh when are people going to understand that benefits are benefits, not obligatory rights to supplement a lifestyle choice?

As for being 'hurt'. Good! We're deep in the !!!!. It's going to hurt for everyone. Wanna see my tax deducation this month?

Silverbull

chucky wrote: »

what's going to cause more pain for tenants and maybe landlords is the reduction in disposable income across the board.

rents will be less than inflation for at least the next 12-24 months i think

There is no doubt this will reduce average rents and house prices.

There must be some very worried BTL landlords in London who have just found out the changes. Wonder how many have mortgage interest payments more than the capped amount of rent they can get?

This is going to bring on a load of new repossessions.

Silverbull

Silverbull wrote: »

There is no change on the LHA calculator yet

https://lha-direct.voa.gov.uk/Secure/Default.aspx

Im keeping my eyes on it.

An example is inner North London at the moment 2 bed is 330.


161 Inner North London £330.00 30 Jun 2010 01 Jun 2010

https://lha-direct.voa.gov.uk/Secure/LHARateSearch.aspx?SearchType=PostCode

So all those now getting 330 will only get 290 per week?

If they are unable to pay they either have to move to a cheaper 1 bed, or the land lord has to reduce the rents.

If they are a family with kids how can they move to a 1 bed flat?

The rents have to come down, which will be another reason for house prices to come down as well.

chucky

bendix wrote: »

With the greatest of respect, chucky, you can't find a four bedroom house to rent for under 1700 a month, you aren't trying hard enough. Move further away - it's simple.

I live in Westminster. It might be tough to find a private rent for that price in Notting Hill, but moving 2miles to Westbourn Grove or Willesden - easy as anything.

When oh when are people going to understand that benefits are benefits, not obligatory rights to supplement a lifestyle choice?

As for being 'hurt'. Good! We're deep in the !!!!. It's going to hurt for everyone. Wanna see my tax deducation this month?

i agree with you in principle and something needed to be done.

the issue you probably need to have a look at is families who are living in 'ok' areas in the borough - you're asking them to move to areas like Lisson Grove, the southern part of Maida Vale or even the areas behind the Harrow Road towards Kensal Rise. these aren't the best areas to bring up children and may push children or older boys into 'pass-times' they shouldn't be involved in.

btw Westbourne Grove is extremely expensive - you won't find anything there.

Niche

As I posted on another thread, I know someone who was paying £725 per month for a 2 bed flat and she got 'asked to leave' by her landlord as he could get £895 per month from the council, this was only a couple of months ago, bet he regrets that decision now.

Personally I think it should be on the value of the house, ie if a 4 bed in London can pay £400 per week with the property worth say £400K then a 4 bed worth £200K somewhere else should be £200 per week rent.

It would only be fair.

ILW

chucky wrote: »

i agree with you in principle and something needed to be done.

the issue you probably need to have a look at is families who are living in 'ok' areas in the borough - you're asking them to move to areas like Lisson Grove, the southern part of Maida Vale or even the areas behind the Harrow Road towards Kensal Rise. these aren't the best areas to bring up children and may push children or older boys into 'pass-times' they shouldn't be involved in.

btw Westbourne Grove is extremely expensive - you won't find anything there.

I am sure you will find owners and others who do not receive LHA living in these not so great areas, because that is what they can afford. Why should claimants get special treatment keeping them in the better areas at others expense.