New Housing Benefit cuts: what effect will they have?

silvercar

Silverbull wrote: »

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.

Its not starting immediately, plenty of time to readjust.

chucky

ILW wrote: »

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.

i agree with you and that's not the point that i'm making.

the point that i am making is that even though we need these changes there are going to be families affected negatively through these changes due to others previously abusing the system.

i have sympathy for them.

ILW

chucky wrote: »

i agree with you and that's not the point that i'm making.

the point that i am making is that even though we need these changes there are going to be families affected negatively through these changes due to others previously abusing the system.

i have sympathy for them.

I have some sympathy, but I think claimants need to get used to the idea that if you get a drop in income (for whatever reason) it does involve changes in lifestyle. It has always been like it for working buyers and renters and some LHA tenents have been rather shielded from the realities of life.

chucky

ILW wrote: »

I have some sympathy, but I think claimants need to get used to the idea that if you get a drop in income (for whatever reason) it does involve changes in lifestyle. It has always been like it for working buyers and renters and some LHA tenents have been rather shielded from the realities of life.

when children are involved and it means making them re-adjust their lifestyle - it's not for me sorry

kennyboy66_2

40% of families in inner London claim Housing benefit (the figure is 25% for greater London).

I also heard on R4 this morning that there are approx 100 claims for £100k per year in Housing Benefit (£2k per week). Can this be true ?

ILW

chucky wrote: »

when children are involved and it means making them re-adjust their lifestyle - it's not for me sorry

It is what non claimants have to do, and they are the ones who are in effect paying the LHA. Seems very unfair to me. I cannot see the logic of the people in the scummy areas having to pay extra to keep others in the nice areas.

Silverbull

kennyboy66 wrote: »

40% of families in inner London claim Housing benefit (the figure is 25% for greater London).

I also heard on R4 this morning that there are approx 100 claims for £100k per year in Housing Benefit (£2k per week). Can this be true ?

So what will all those do now?

All those who are getting more than the capped amount will have to move to a smaller place, OR

landlords will reduce the rents.

Which will bring house prices down as well.

SingleSue

I think it needs to be pointed out that this will impact those working as well as those not working....you can still be working and claiming LHA as it is dependent on income.

So those who have been unemployed and have taken a job, any job so as not to claim JSA, will be hard hit too as well as those who have only ever worked in minimum wage jobs.**

**In certain areas.

ILW

Silverbull wrote: »

So what will all those do now?

All those who are getting more than the capped amount will have to move to a smaller place, OR

landlords will reduce the rents.

Which will bring house prices down as well.

Or a similar sized place in a cheaper area.

princeofpounds

This is a wonderful decision.

Unfortunately it's going to be uncomfortable for the people caught up in it, but it corrects deep and serious imbalances that will improve quality of life for many people in the years ahead (mostly less well-off working families who will now find housing more affordable as they do not have to compete with LHA rents set at the level of average earnings - i.e. better than 50% of the working population in that housing band!).

But let's not forget it never should have been allowed to become this way in the first place.