Changes to Housing benefit how much will rents fall?

stelaconcepts

Sue_S wrote: »

My money is on 90% of landlords and tenants in London being directly affected by the changes.[/QUOTE]

Well I'm a landlord being directly affected by the changes. I lease a house in London to Notting Hill Housing Trust and they've contacted me to say that as from next April my rent will be reduced by 22%. I can either agree to this or they will evict the tenant and return the house to me.[/QUOTE]

Very interesting, what will you do? Can you still afford the mortgage payments and expenses even if rates go back to normal?

Are they good tenants who look after the place?

Sue_S

We're accepting the offer. The rent is still good - if we rent on the private market using an agent we'd probably get about £100 more but would have to worry about tenants leaving, voids, repairs, etc. The deal with NHHT is that they do all minor repairs, there are no fees to them, the rent is guaranteed and the house will be handed back at the end of the lease in the same condition as handed over (excepting wear and tear).

It's a big reduction but we don't have a mortgage on the property so it's not a 'make or break' for us.

I have no idea if the tenants are good or not - my lease is with NHHT and they find the tenants and look after the property. I live a long way away and never go the property at all.

silvercar

I would be interested to know what tenants will do? Are they now looking up what their new LHA will be? Are they looking for cheaper places? Are they making adjustments to their budgets to afford the higher rent? Are they discussing with their landlord a possible reduction in rent?

ILW

Sue_S wrote: »

We're accepting the offer. The rent is still good - if we rent on the private market using an agent we'd probably get about £100 more but would have to worry about tenants leaving, voids, repairs, etc. The deal with NHHT is that they do all minor repairs, there are no fees to them, the rent is guaranteed and the house will be handed back at the end of the lease in the same condition as handed over (excepting wear and tear).

It's a big reduction but we don't have a mortgage on the property so it's not a 'make or break' for us.

I have no idea if the tenants are good or not - my lease is with NHHT and they find the tenants and look after the property. I live a long way away and never go the property at all.

Looks like the government policy is spot on in this case. Rent reduced by 20%. Carried over the thousands of properties this could affect it is a massive saving for the taxpayer. Well done Osbourne.

stelaconcepts

ILW wrote: »

Looks like the government policy is spot on in this case. Rent reduced by 20%. Carried over the thousands of properties this could affect it is a massive saving for the taxpayer. Well done Osbourne.

Im sure landlords dont like average rents going down so much next year. Just at a time when interest rate will be going back up to normal.

Also Im sure those trying to sell a house wont be so happy as rents fall they bring house prices down with them.

But then you cant please everyone all the time.

ILW

stelaconcepts wrote: »

Im sure landlords dont like average rents going down so much next year. Just at a time when interest rate will be going back up to normal.

Also Im sure those trying to sell a house wont be so happy as rents fall they bring house prices down with them.

But then you cant please everyone all the time.

I cannot understand why landlords think that they have a god given right to be able to charge a rent that is higher than the mortgage payments. Landlording is a business like any other and open to all the same risks of market forces etc.

simondm

daisydays wrote: »

Where can you find out what the HB cap is for your area please?

This link shows what the levels would be using the 30th percentile rather than 50th as at present (tables 2 and 3) for each area.

http://www.voa.gov.uk/lhadirect/documents/lha_percentile_rates_august10.htm

Sue_S

ILW wrote: »

Looks like the government policy is spot on in this case. Rent reduced by 20%. Carried over the thousands of properties this could affect it is a massive saving for the taxpayer. Well done Osbourne.

I have to say that despite it hitting my pocket I absolutely agree with you. I was stunned when I was offered the original rent and I will have had the bonus of that amount for two years by the time NHHT reduce it. Still a good deal for the following three years (but perhaps I won't be quite so accepting if it gets reduced further...)

74tnemele

silvercar wrote: »

I would be interested to know what tenants will do? Are they now looking up what their new LHA will be? Are they looking for cheaper places? Are they making adjustments to their budgets to afford the higher rent? Are they discussing with their landlord a possible reduction in rent?

As I said before I am discussing with my LL a rent reduction. He didnt even know about the changes next year and rents falling.

I think he is typical most LLs will be shocked and if they dont reduce their rents they may find their places empty for a long time.

IveSeenTheLight

My money is on 90% of landlords and tenants in London being directly affected by the changes.[/QUOTE]

Well I'm a landlord being directly affected by the changes. I lease a house in London to Notting Hill Housing Trust and they've contacted me to say that as from next April my rent will be reduced by 22%. I can either agree to this or they will evict the tenant and return the house to me.[/QUOTE]

Interesting.
What do you intend to do?