Changes to Housing benefit how much will rents fall?

silvercar

74tnemele wrote: »

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.

Some tenants will presumably try to make up the difference, otherwise they risk a CCJ and eviction. Moving home costs money and the difficulty of finding a new place with no landlord reference and relying on decreasing benefits (that the next landlord knows will reduce) may focus minds.

IveSeenTheLight

74tnemele wrote: »

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.

If they are to be empty for a long time, where will all the current tenants go?

there is an assumtion going on that there is an abundance of available properties for rent.
If that were true market forces would already have reduced the rent.

chewmylegoff

Shakethedisease wrote: »

Fair point, yet 2/3rd's of Camden private tenants ARE claimants.. which is a pretty big majority for just one borough highlighted. So there will be a lot more landlords affected than not ?

drc wrote:

Where did you get that figure from?

Shakethedisease wrote:

http://www.insidehousing.co.uk/news/...511308.article

From this article.

unless i have missed something fundamental, and hence wasted a load of time posting the below, that article says there are 3101 LHA claimants in Camden, and that 2000 of them will be affected by the changes. it doesn't say that 2/3 of private renters in camden claim LHA.

camden's poluation is around 230,000. this suggests about 90,000 households (based on approx 2.5 persons per household - roughly average for london), say 15% privately rented (based on national trend - probably underestimating by a long way as there are generally more people renting in london than elsewhere) would suggest something in the order of 13,500 privately rented homes.

3,101/13,500 = 23%

rough calculation, but not indicative of anywhere near 2/3 of private renters claiming LHA.

also, there are currently:

382 houses
368 studios
650 1 bed flats
987 2 bed flats
676 3+ bed flats

for rent on rightmove.

that is 3,063 in total. there will be duplicates in there and properties that have actually been let, but even if only half of the adverts are unique and available it would be very strange to have approximately 1/3 of the private rental stock available for rent at any one time.

conclusion: i severely doubt that 2/3 of camden's private renters are claiming LHA.

Graham_Devon

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

Is this £100 more than the 22% reduced figure?

So you are saying on the private market you couldn't get near what you were being paid via benefits?

Find that interesting, as it will mean landlords have little choice really. Evict tennants, get less. Keep tennants, get less.

chucky

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

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.

doesn't the Notting Hill Housing Trust do the 3/5 year contracts with guaranteed rent?

they're breaking their contract with you if they're looking to return the house to you aren't they.

carolt

simondm wrote: »

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

Incredible figures. If I read this correctly, then ordinary people who work will actually be able to afford to live in London again, as they will no longer be competing with a loaded benefit underclass eg see prices for a 3 bed place in outer S or W London, both nice family areas which I know well - new rents are £287/£253 ish/week - something a working family could afford too.

Great news for renters and taxpayers alike, :j:j:j but bad news for greedy landlords everywhere.

Sue_S

chucky wrote: »

doesn't the Notting Hill Housing Trust do the 3/5 year contracts with guaranteed rent?

they're breaking their contract with you if they're looking to return the house to you aren't they.

There was a 'get-out' clause in the contract which enabled them to give us 28 days notice of termination. No reason required. I queried this when I was given the contract but there was no leeway, sign or forget it.

The new rent will be agreed with a 'Deed of Variation' on the contract.

Sue_S

Graham_Devon wrote: »

Is this £100 more than the 22% reduced figure?

So you are saying on the private market you couldn't get near what you were being paid via benefits?

Find that interesting, as it will mean landlords have little choice really. Evict tennants, get less. Keep tennants, get less.

Yes, it's £100 more than the reduced amount. When we first took out the contract with NHHT we were stunned at what they were prepared to pay us. But delighted of course

chucky

Sue_S wrote: »

There was a 'get-out' clause in the contract which enabled them to give us 28 days notice of termination. No reason required. I queried this when I was given the contract but there was no leeway, sign or forget it.

The new rent will be agreed with a 'Deed of Variation' on the contract.

i'd never have signed it - you'd get more rental income in the private rental market.

neverdespairgirl

chewmylegoff wrote: »

also, there are currently:

382 houses
368 studios
650 1 bed flats
987 2 bed flats
676 3+ bed flats

for rent on rightmove.

The rest of your post seems bang on, I agree.

But how did you search by borough on rightmove?