Changes to Housing benefit how much will rents fall?

ILW

Are there any estimates of the savings to the treasury on an annual basis?

Graham_Devon

ILW wrote: »

Are there any estimates of the savings to the treasury on an annual basis?

By the end of this parliament, the estimate is it will save £1.8bn each year.

I assume they say the end of the parliament as this first year is just the start of a series of cuts each year to LHA payments.

ILW

Graham_Devon wrote: »

By the end of this parliament, the estimate is it will save £1.8bn each year.

I assume they say the end of the parliament as this first year is just the start of a series of cuts each year to LHA payments.

It just seems to get better. That is a lot of money. Sure someone will find a downside though.

IveSeenTheLight

74tnemele wrote: »

As we have said before they will have to move away from the S,E.

Places like Wales and Scotland or countryside in N,England.

For some reason I don't think that it is likely to happen that way
I think people may relocate to a cheaper local ara if they can but unlikely to move hundreds of miles away

chucky

74tnemele wrote: »

As we have said before they will have to move away from the S,E.

Places like Wales and Scotland or countryside in N,England.

that would be a long commute to go to work in the South East.

are there enough jobs for these people for them to to go to places like Wales and Scotland?

ILW

chucky wrote: »

that would be a long commute to go to work in the South East.

are there enough jobs for these people for them to to go to places like Wales and Scotland?

As said before, most will just need to move a few miles, especially in London where you can find 1 million pound 3 bed houses within a few miles of virtually identical properties worth less than a quarter of that.

chucky

ILW wrote: »

As said before, most will just need to move a few miles, especially in London where you can find 1 million pound 3 bed houses within a few miles of virtually identical properties worth less than a quarter of that.

that would blow out of the water some people's theory that there will be exclusively an increased supply.

there may be an increased supply in one area but there will be an increased demand in the other. we know what increased demand does...

an increased demand will increase prices in other areas which will obviously deter people from moving.

ILW

chucky wrote: »

that would blow out of the water some people's theory that there will be exclusively an increased supply.

there may be an increased supply in one area but there will be an increased demand in the other. we know what increased demand does...

an increased demand will increase prices in other areas which will obviously deter people from moving.

Demand is determeined by wish and ability to pay, the cheaper areas will hit a ceiling based around the reduced LHA levels, which may in future years cause LHA levels to be reduced further. Bloody marvelous.

chucky

ILW wrote: »

Demand is determeined by wish and ability to pay, the cheaper areas will hit a ceiling based around the reduced LHA levels, which may in future years cause LHA levels to be reduced further. Bloody marvelous.

....... effective demand

according to many on here - the whole of the London rental market is supported by Housing Benefit. it's complete cobblers IMHO.

chewmylegoff

IveSeenTheLight wrote: »

For some reason I don't think that it is likely to happen that way
I think people may relocate to a cheaper local ara if they can but unlikely to move hundreds of miles away

the map of london from the earlier link I posted suggests that only 16 out of 33 boroughs (including the city of london) will be seriously affected. this seems to imply that at least some of the other boroughs must either have sufficient social housing (seems unlikely) or rental prices are low enough for the caps not to be a material problem.