Changes to Housing benefit how much will rents fall?

the_flying_pig

ukcarper wrote: »

I don't think it will be allowed to happen even if they have to keep housing benefit high for London

pff.

you use the passive voice, suggest that it won't "be allowed to happen".

in whose gift do you think it is to decide whether "it" does or does not "happen"?

what absolutely will happen is a combination of:

(1) - meaty falls in rent as a proportion of demand [the part provided by the state] falls away;

(2) - people being forced to move to cheaper areas; and

(3) - some instances of non-compliance, i.e. continued high payments.

what the balance between the three will be is anyone's guess but i would not hold out too much hope for (3) being the most common...

ukcarper

Silverbull wrote: »

That`s not what they are saying now.

April next year HB is being cut to max 400wk for big families. 350wk for 3bed 290wk for 2bed.

London is not immune, it will apply to London the same as the rest of the country.

If it stays at those levels people will still be able to live in London not Chelsea or Westminster admittedly

ukcarper

the_flying_pig wrote: »

pff.

you use the passive voice, suggest that it won't "be allowed to happen".

in whose gift do you think it is to decide whether "it" does or does not "happen"?

what absolutely will happen is a combination of:

(1) - meaty falls in rent as a proportion of demand [the part provided by the state] falls away;

(2) - people being forced to move to cheaper areas; and

(3) - some instances of non-compliance, i.e. continued high payments.

what the balance between the three will be is anyone's guess but i would not hold out too much hope for (3) being the most common...

I'm not saying prices won't drop all I'm saying is they won't drop low enough for people on low wages to rent them without help.

drc

Silverbull wrote: »

Chucky you do not understand the situation at all.

What would you say to the senior London housing official, who speaking off the record due to his civil service status, said: " I have been in housing for 30 years and I have never seen anything like this in terms of projected population movements. London is going to be a bit like Paris, with the poor living on the periphery. In many boroughs in inner London in three or four years there will be no poor people living in the private rented sector … it is like something from the 19th century."

But they are not poor if they can afford to live in central London at the expense of the taxpayer. In fact, they are probably getting more in benefits than most of the workers who trek into London each day to work in the shops and offices around them get in salary after they have paid tax and NI.

ukcarper

Could you not argue that the taxpayers are subsiding the employers who pay those low wages

silvercar

Silverbull wrote:

In many boroughs in inner London in three or four years there will be no poor people living in the private rented sector … it is like something from the 19th century."

IS this a problem? A lot of us can't afford to live in the smartest areas of town.

If you work somewhere to expensive to live, you commute. If you don't work you don't even need to commute.

silvercar

ukcarper wrote: »

Could you not argue that the taxpayers are subsiding the low wages paid by some employers

Definitely. In some jobs, particularly the voluntary sector, people are working just to clock up the hours to get access the WTC and CTC etc which almost doubles their income.

Search around some areas of this forum and you see self-employed people working 16 or 30 hours a week with zero income. Solely for the purpose of claiming credits and all that goes with it.

ukcarper

Will I be able to afford my burger when there are no people on benefits living in London?

Jowo_2

Silverbull wrote: »

...

April next year HB is being cut to max 400wk for big families. 350wk for 3bed 290wk for 2bed.

London is not immune, it will apply to London the same as the rest of the country.

The climbdown has started, according to this article, which shows that steps are being taken to prevent tenants being forced to move in London due to the LHA cap:-

"Thousands of Londoners who face being forced out of their homes as a result of the new housing benefit cap could be granted a reprieve under plans revealed today.

Tenants who provide a good reason to stay in their area - such as having children at local schools or caring for a relative living nearby - could be exempt.

Others could qualify for cash from an enlarged £20million government hardship fund to help them move to a cheaper property.
In some cases the money could be used to bridge the gap between the benefit cap and private rent in the capital.

The Standard has learned that ministers are also looking at plans proposed by Boris Johnson to pay housing benefit directly to private landlords to cushion them against tenants falling into arrears.

In return they would be required to reduce their rent below the cap of up to £250 a week for a two-bedroom property and up to £400 a week for a four-bedroom home.

The proposals would help address concerns that London tenants are being disproportionately targeted by the cuts because of high rents in the capital. London Councils estimates that 15,000 households could be forced to move out of their current borough as a result.

The Mayor is in talks with Work and Pensions Secretary Iain Duncan Smith, who will make the decision after consultation with the Treasury.
It will inevitably prompt claims of a policy backtrack after George Osborne pledged to tighten up the system to avoid abuse, singling out examples of London tenants.

Mr Johnson has joined a growing group of MPs who say the housing benefit plans are draconian and unfair. A City Hall source said: "IDS is receptive to the plans. He recognises there is a problem."
Under the proposals, the hardship fund, distributed by councils, would be doubled to £20million this year and then rise to £50million to help tenants.

"We want the lion's share of this ring-fenced for the capital and IDS has been pretty encouraging on this," the source said.
A spokeswoman for the DWP said: "We are working with the Greater London Authority to understand the impact of housing benefit reform in London."

http://www.thisislondon.co.uk/standard/article-23884963-mayor-seeks-reprieve-for-london-tenants-hit-by-housing-benefits-clampdown.do

Silverbull

So there is money being put aside ready to help pay for this mass exodus out of London.

It sounds like they are planning to pay companies to move all these foreigners on low wages out to the countryside or something.

What will the affect be on the poor country folk to suddenly have all these benefit claimants moved into their little towns?

Certainly its not a good time to be a land lord in London, will be very hard to find tenants even as rents fall there are going to be a lot of empty properties.