Changes to Housing benefit how much will rents fall?

HAMISH_MCTAVISH

Generali wrote: »

Economic theory is pretty clear about what happens when you reduce a subsidy like housing benefit, that is that both parties take the hit. Perhaps of £22, the landlord will get £12 less in income and the tenant pay an extra tenner. Perhaps it'll be the other way round.

So we expect London landlords to take a hit of, on average, £40 a month in a market where £1000 rents are usual.

And presumably far less elsewhere.

Again, not seeing this as the trigger for a big decline in rents or house prices.

System

T'is a good idea though, all those £22's must add up to an enormous saving in the end.

brit1234

HAMISH_MCTAVISH wrote: »

So we expect London landlords to take a hit of, on average, £40 a month in a market where £1000 rents are usual.

And presumably far less elsewhere.

Again, not seeing this as the trigger for a big decline in rents or house prices.

:rotfl:

Sorry a little reality Hamish.

Where I live 1 bed flats on council estates are rented out at £1,000 a month to council tenants. That's a £2,400 drop a month in revenue. That's one of 10,000s -100,000s of rented London properties.

There is going to be massive upheavals.

Strings

brit1234 wrote: »

:rotfl:

Sorry a little reality Hamish.

Where I live 1 bed flats on council estates are rented out at £1,000 a month to council tenants. That's a £2,400 drop a month in revenue. That's one of 10,000s -100,000s of rented London properties.

There is going to be massive upheavals.

Which estate is that, seems very high?

lynzpower

The issue is that actaully, in london there is a huge lack of rental property and a very high demand. Even in the outer reaches of zone 5 where i have been viewing, EAs are doing block viewings (6 couples, for example) when a property hits the market, and will go on that viewing if it isnt a total hole.

I love these ideas that everyone will move out to the redbridges, Barking and dagenhams, harrow and barnet, but there are no void properties here, IMVHO.

System

Maybe they could move out of London then. I must say I'm getting a bit tired of people moaning they can't afford to live in London. I would LOVE to live there, but I can't afford to, so I live elsewhere.

ILW

I would have thought that the £400pw week cap would make a big difference in London, especially West and North where rents on 4 bedders tend to be over £2000pm.

lynzpower

Joeskeppi wrote: »

Maybe they could move out of London then. I must say I'm getting a bit tired of people moaning they can't afford to live in London. I would LOVE to live there, but I can't afford to, so I live elsewhere.

So in that case then who run the librarys, the coffee shops, the bars, the restaurants, who cleans? Who works in chippies, macdonalds, the lower end of the health service? Who drives the buses, looks after children in nursery, is the teaching assistants in schools? Who care for the elderly or disabled on minimum wage?

Strings

lynzpower wrote: »

So in that case then who run the librarys, the coffee shops, the bars, the restaurants, who cleans? Who works in chippies, macdonalds, the lower end of the health service? Who drives the buses, looks after children in nursery, is the teaching assistants in schools? Who care for the elderly or disabled on minimum wage?

Do these same people get HB though?

lynzpower

Strings wrote: »

Do these same people get HB though?

Yes of course they do! Anyone low paid can get LHA contribution towards thier rent. Along with CTB if they are on a low wage also .