Changes to Housing benefit how much will rents fall?

RDB

The Government now says they will

· reduce all Local Housing Allowance rates so that about 5 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 3 in 10 properties as now.

Can be found here

http://www.maldon.gov.uk/LivingHere/CTBenBR/Future+Changes+to+Benefits.htm


So there is no doubt then that average rents will be reduced?

Not good news for landlords trying to rent out their properties just as we near the time when rates go up and monthly mortgage payments could go higher than the rental income.

Strings

Depends on whether landlords will let to those on benefits and what the current % of renters are on benefits.
I dont think there will be a big reduction rent, but instead there wont be an increase as interest rates go up.

Those on benefits will see their disposable income go down, before their rent will reduce

RDB

Strings wrote: »

Depends on whether landlords will let to those on benefits and what the current % of renters are on benefits.
I dont think there will be a big reduction rent, but instead there wont be an increase as interest rates go up.

Those on benefits will see their disposable income go down, before their rent will reduce

Its really only the high priced London rents that will be affected.

There is no doubt that housing benefit has pushed up rents and with them house prices in London.

I dont know the figures but I think its a very high percentage of renters getting housing ben in London.

Q. How can anyone with a family afford these high rents if they have an average job?

A. They can't without H Benefit. As it comes down over the next few years so will average rents.

Strings

RDB wrote: »

Its really only the high priced London rents that will be affected.

There is no doubt that housing benefit has pushed up rents and with them house prices in London.

I dont know the figures but I think its a very high percentage of renters getting housing ben in London.

Q. How can anyone with a family afford these high rents if they have an average job?

A. They can't without H Benefit. As it comes down over the next few years so will average rents.

Without any figures you cant really speculate what will happen can you?

I would have thought those who can not afford london rents, will merely move, with replacement tenants paying the same price. ie those without the need for HB

Graham_Devon

RDB wrote: »

on.

Q. How can anyone with a family afford these high rents if they have an average job?

A. They can't without H Benefit. As it comes down over the next few years so will average rents.

It's been said that these people will simply haul themselves and their families out of london and landlords will have fresh new workers knocking down the front door ready to pay the rent.

Easy as 1,2,3, just like that, the landlords, yet again, won't be effected. They say

mitchaa

RDB wrote: »

Its really only the high priced London rents that will be affected.

There is no doubt that housing benefit has pushed up rents and with them house prices in London.

I dont know the figures but I think its a very high percentage of renters getting housing ben in London.

Q. How can anyone with a family afford these high rents if they have an average job?

A. They can't without H Benefit. As it comes down over the next few years so will average rents.

It was reported that the maximum cap would only affect London properties, but all areas are being reviewed and cut.

RDB

Strings wrote: »

Without any figures you cant really speculate what will happen can you?

I would have thought those who can not afford london rents, will merely move, with replacement tenants paying the same price. ie those without the need for HB

So all those with average (not very highly paid) jobs will all move out of London?

Hmmmmm?

Strings

RDB wrote: »

So all those with average (not very highly paid) jobs will all move out of London?

Hmmmmm?

No they will commute like the rest of us

Graham_Devon

Strings wrote: »

No they will commute like the rest of us

LOL. They can't even afford to rent a place without help.

Where is the magical money going to come from to simply commute?

As I said...last time this was discussed, all these ideas were just dreampt up. The only thing that was categorical in all of the ideas was the landlord would not lose a penny.

Everyone will simply move en masse to different counties. They will commute on magic money. Landlords will have new renters bashing on their doors pleading with them to rent their overpriced place and it will not, under any circumstances whatsoever, have any negative impact on prices of rent or prices of houses. Infact, it was decided last time that it would put upward pressure on prices....cus all those who rented would be moving to cheaper places pushing the prices up.

Was amusing to say the least.

Strings

Graham_Devon wrote: »

LOL. They can't even afford to rent a place without help.

Where is the magical money going to come from to simply commute?

As I said...last time this was discussed, all these ideas were just dreampt up. The only thing that was categorical in all of the ideas was the landlord would not lose a penny.

Everyone will simply move en masse to different counties. They will commute on magic money. Landlords will have new renters bashing on their doors pleading with them to rent their overpriced place and it will not, under any circumstances whatsoever, have any negative impact on prices of rent or prices of houses. Infact, it was decided last time that it would put upward pressure on prices....cus all those who rented would be moving to cheaper places pushing the prices up.

Was amusing to say the least.

I am not talking about moving miles away, merely to another zone or cheaper post code.

brit1234

Strings wrote: »

No they will commute like the rest of us

£3k-£4k on commuting costs, easy.

Its not as if rail fares go up over inflation every year is it.

Its well known that housing benefits have been paying better rents than normal tenant in much of the country. Hence all the landlord blogs and forums recommending them like Ajay Ahuja. It will have a massive effect especially when you combine the public sector cuts on top.