Changes to Housing benefit how much will rents fall?

silvercar

ILW wrote: »

Or to put another slant on it, when landlords sell up it will put more properties on the market, this will force prices down in the area and some of the people currently on lHA supported rents will buy the houses, thereby freeing up the remaining rental properties.

So how many people on LHA do you think will have been able to save a 10% deposit while in receipt of benefits and have an income large enough to justify the mortgage they will need?

ILW

silvercar wrote: »

So how many people on LHA do you think will have been able to save a 10% deposit while in receipt of benefits and have an income large enough to justify the mortgage they will need?

If yor are renting a 4 bed in say Westminster (even the grotty bit) the LHA is around £3000 per month. You could have a pretty high income and still get benefits whilst the landlord is raking in a fortune. I believe the new rules will hopefully stop this madness.

chewmylegoff

ILW wrote: »

Not south of the river.

there are certainly areas both north and south where it may not be the case, but they aren't the ones that will be affected by the LHA cap in the first place so are therefore irrelevant.

the only boroughs south of the river which will be affected are richmond (50% of which is south of the river), wandsworth and merton. richmond and merton have less than 500 claimants affected each, whilst wandsworth has between 1000 and 2000.

there aren't many sub 200k properties in any of those areas and the ones that are sub 200k are the dregs already.

Graham_Devon

chucky wrote: »

we know what increased demand does...

Will still be a cap on the LHA payments. So this particular increased demand won't actually help prices increase, as all the people creating the demand have a cap on the amount of rent they can pay.

chucky

Graham_Devon wrote: »

Will still be a cap on the LHA payments. So this particular increased demand won't actually help prices increase, as all the people creating the demand have a cap on the amount of rent they can pay.

whoooooooooosh - point missed completely i see

74tnemele

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.

These families getting up to 4.5grand a week will now have to move to an area where they can find a house for under 400 week. It wont be anywhere near London.

Some have said they can not see this happening, but why?

If a big family unemployed with several children then at the moment there is no limit to how much the gov will pay for them to live in huge house in expensive area. Sometimes about 4.5 grand a week, but 1 or 2 grand a week is far more common.

They will have to go quite far away from London to get a house with as many bedrooms for under 400wk.

If they are on sick ben or jobseekers it doesnt really matter where they live.


Maybe London rents will go down as less unemployed or sick ben people cant afford to live in London.

The countryside rents may go up as all these families move away from London.

chewmylegoff

74tnemele wrote: »

They will have to go quite far away from London to get a house with as many bedrooms for under 400wk.

22 of the london boroughs have at least one area within the borough were current LHA rates are below £400pw for a 4 bed. The LHA for a 4 bed goes as low as £253pw. This suggests that you can get a 4 bed for under £400pw in many london boroughs.

So no, they won't have to move quite far away from London, although they may have to move away from the city of westminster.

74tnemele

chewmylegoff wrote: »

22 of the london boroughs have at least one area within the borough were current LHA rates are below £400pw for a 4 bed. The LHA for a 4 bed goes as low as £253pw. This suggests that you can get a 4 bed for under £400pw in many london boroughs.

So no, they won't have to move quite far away from London, although they may have to move away from the city of westminster.

What about more than 4 bedrooms?

Some foreign families on benefits have several children.

carolt

chewmylegoff wrote: »

22 of the london boroughs have at least one area within the borough were current LHA rates are below £400pw for a 4 bed. The LHA for a 4 bed goes as low as £253pw. This suggests that you can get a 4 bed for under £400pw in many london boroughs.

So no, they won't have to move quite far away from London, although they may have to move away from the city of westminster.

So who do you think will rent all the £400+ houses once they move? And at what price?

chucky

carolt wrote: »

So who do you think will rent all the £400+ houses once they move? And at what price?

i don't think anybody knows Carol. it may even depend in each borough.

it will be interesting though.