Cheaper rents

FATBALLZ

HAMISH_MCTAVISH wrote: »

*sigh*

At the moment, allowance is set to the 50th percentile. There will be a distribution around that level. Some will pay less, some will top up and pay more, but it'll be a fairly standard bell curve and they'll theoretically have access to a bit more than 50% of houses on the market.

By setting rents to the 30th percentile, then benefits claimants will now only have access to a bit more than 30% of houses on the market. This will concentrate benefits claimants at the bottom end, and squeeze out existing non-benefits tenants from those areas.

Now those who have been squeezed out will have to move up the ladder and pay more. There will be no houses left at the cheaper price. A good number of those people will be the FTB's saving for a deposit. They will no longer be able to save as much.

The other thing that will happen is that prices in that bottom end will rise as supply fails to meet demand. This will narrow the gap between cheapest and most expensive rents in an area, and will skew the median price upwards. And benefits will then rise again to match.

That's a contrived bit of reasoning even by your standards :rotfl: