Just 5000 people exceed new maximum housing benefit

1984ReturnsForReal_2

chucky wrote: »

Or we could you use the media exaggerated version

http://www.telegraph.co.uk/finance/financetopics/budget/7849515/Budget-2010-thousands-could-be-evicted-because-of-80-per-cent-cut-to-housing-benefit.html

the problem is that it doesn't include the number of people that will need to move because there housing benefit will be reduced.

No one legit will be moving anywhere....

And then you have the people who pay inflated rent to their parents & relatives & get a little back each month..

silvercar

jenner wrote: »

and in any case its more indepth than that, the new limits will be on the 30th percentile of the average rent (so lower than now) and for claimants in receipt of jsa for more than 12 months, their award will be lowered to 90% of what it was previously,, so that is a huge cut

Is it huge? I checked out the 2 bed rents on rightmove in my area. A drop from the median to the 30th percentile is a drop from £850 to £780. An extra £70 a month or £16 a week. Maybe difficult for some on low income, but I wouldn't call it huge.

Generali

silvercar wrote: »

Is it huge? I checked out the 2 bed rents on rightmove in my area. A drop from the median to the 30th percentile is a drop from £850 to £780. An extra £70 a month or £16 a week. Maybe difficult for some on low income, but I wouldn't call it huge.

Markets are set at the margin. The £16 a week/£832 a year will be enough to make a few landlords sell or a few tenants move house. That can start price changes that then impact on other decisions.

It should be the case that £1,800,000,000 withdrawn from a housing market worth overall £4,000,000,000,000 IIRC (certainly of the order of trillions) shouldn't make a difference. Markets are funny beasts though.

GDB2222

HAMISH_MCTAVISH wrote: »

:rotfl:

What I said was "just 5000 people exceed new maximum housing benefit".

I have quite a few 'DSS' tenants. None are paying me over £400 a week (unfortunately).

However, quite a few are near the local reference rent, as that's how the system works. So, when that goes down from the 50th percentile to the 30th, the tenants' LHAs will reduce and the aren't going to be able to afford the rent, so that will have to reduce, and that will have a knock-on effect on the local reference rent, which could spiral downwards. Also, in many areas, the overall rent levels for non-DSS are buoyed up by the LHA, so that will add to the spiral.

Whilst I think it's a perfectly sensible move by the govt., I'm certainly expecting this to hit my income quite significantly. For those LLs with substantial borrowings, this could be extremely serious.

Assuming that the govt's figure of £1.8bn is correct, that's all coming from private LLs. At 6% interest, that supports £30bn of mortgages.

jamespir

so thats going to be 5000 people homeless by the years out then

The_White_Horse

the maximum should have been set at 75 quid.

puddy

silvercar wrote: »

Is it huge? I checked out the 2 bed rents on rightmove in my area. A drop from the median to the 30th percentile is a drop from £850 to £780. An extra £70 a month or £16 a week. Maybe difficult for some on low income, but I wouldn't call it huge.

if you take jsa rates of 65quid, then 16pounds of that is a large percentage to pay each week to top up, plus take off another 10% after being unemployed for 12 months

silvercar

Generali wrote: »

Markets are set at the margin. The £16 a week/£832 a year will be enough to make a few landlords sell or a few tenants move house. That can start price changes that then impact on other decisions.

It should be the case that £1,800,000,000 withdrawn from a housing market worth overall £4,000,000,000,000 IIRC (certainly of the order of trillions) shouldn't make a difference. Markets are funny beasts though.

Would landlords really evict a tenant who refused to top up the rent by 8%? If the tenant is good in all other respects, isn't the cost of a void and the risk of problems with a future tenant enough to swallow the loss?

Procrastinator333

GDB2222 wrote: »

I have quite a few 'DSS' tenants. None are paying me over £400 a week (unfortunately).

However, quite a few are near the local reference rent, as that's how the system works. So, when that goes down from the 50th percentile to the 30th, the tenants' LHAs will reduce and the aren't going to be able to afford the rent, so that will have to reduce, and that will have a knock-on effect on the local reference rent, which could spiral downwards. Also, in many areas, the overall rent levels for non-DSS are buoyed up by the LHA, so that will add to the spiral.

Whilst I think it's a perfectly sensible move by the govt., I'm certainly expecting this to hit my income quite significantly. For those LLs with substantial borrowings, this could be extremely serious.

Assuming that the govt's figure of £1.8bn is correct, that's all coming from private LLs. At 6% interest, that supports £30bn of mortgages.

Don't worry, Hamish explained it to me in another thread. Your LHA tenants will have to move out to cheaper housing and all those private renters in the cheaper houses will find the extra cash to rent from you at your current rate.

https://forums.moneysavingexpert.com/discussion/2549949

So you will be fine.

silvercar

jenner wrote: »

if you take jsa rates of 65quid, then 16pounds of that is a large percentage to pay each week to top up, plus take off another 10% after being unemployed for 12 months

Agreed. But to get 2 beds you have probably got at least 2 kids, so the JSA with FTC and CTC and CB......will be at least £250 a week.