Changes to Housing benefit how much will rents fall?

Silverbull

MissMoneypenny wrote: »

They have done that before (and still do it) and it doesn't work. A lot of key employees refuse to move to the north or stay in the north: when the government subsidies finish, the firms move back to the south.

The issue is at the moment most on low incomes in London can only afford the to pay the rent due to help from housing ben and council tax ben.

When these props are taken away what will these do who can not afford London rents?

Kenny4315

Won't be effecting my rates as I don't take those on housing benefit now and I won't be taking them in the future either. I only take on working people, not to fussed what they do, but they must be working.

Silverbull

We are talking about working people and those not. Most if not all in London who are on low incomes get help from the government. That is being reduced.

It will affect everyone because rents and house prices will be falling in London every year for next few years.

olly300

Silverbull wrote: »

We are talking about working people and those not. Most if not all in London who are on low incomes get help from the government. That is being reduced.

Some of those on low incomes or benefits actually live in HA or council properties so their rents are much lower than the average rent in their borough. They are not topped up by the government like others in private accommodation.

Others managed to buy their houses years ago so aren't affected by the economic cycle unless they plan on moving.

Silverbull wrote: »

It will affect everyone because rents and house prices will be falling in London every year for next few years.

At the moment where I live in London there is an acute shortage of rental property.

Those who get their private rent topped up or fully paid by LHA are on a par with undergraduate students in getting rental accommodation. In other words landlords don't like them.

House prices have fallen because people can't get mortgages there as rental prices have gone up.

However if LHA is withdrawn or restricted then the students will be able to get accommodation near the university rather than in a different London borough.

novazombie

GHOULES_ARE_BACK_IN_TOWN wrote: »

Excuse me but what do you care waht someone is paid in housing benfit?

It matters because average London rents are going to fall when HB is reduced in April next year.

chucky

Silverbull wrote: »

I dont know, I havent got the answers.

How do you think min wage workers can live near enough to London to do these jobs? Either rents come down in the city or they travel for hours to earn min wage.

The gov can not afford to keep paying these high rents with housing benefit, that much is clear.

how come you keep on ignoring this...

Silverbull wrote: »

So are most in agreement rents and houses price are to come down when this all starts happening?

not if the Mayor gets his own way... and we all know that Boris always gets his own way...always...

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.

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.

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.

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

Silverbull

GHOULES_ARE_BACK_IN_TOWN wrote: »

Excuse me but what do you care waht someone is paid in housing benfit?

All Landlords care in London even if they never rent to someone on low earnings.

We are talking about average rents going to fall.

Even the high end rental market is affected by the mid to low end by supply and demand.

When the ben cap of 500 per week per house hold comes in, some experts are predicting hundreds of thousands of people being forced to move out of London.

Well not forced but if you can only get a max of 500 per week help, then all those getting state pension or some kind of sickness benefit, or tax credits etc, will prefer to live somewhere where they dont need most of their 500wk going towards rent and council tax.

carolt

£20 million quid.

Do you really think that's going to make much of an impact on London rents/house prices, chucky?

It's not much, is it?

chucky

carolt wrote: »

£20 million quid.

Do you really think that's going to make much of an impact on London rents/house prices, chucky?

It's not much, is it?

it's going to be a lot of money in the real world... let's do the math...

£20 million between 15,000 households is £1,333 a year and is £111 a month...

£111 a month will be fine if the average rent reduces by only £88 a month...

Joeskeppi wrote: »

The way I looked at those posts:

22pw off the average rent, I would guess that's between 5 and 10 percent depending on area, possibly a bit more in the bronx, I would classify that as


However, an extra £88+ a month on expenses DOES reduce discretionary spend significantly.

See, I thought about it, rather than going out of my way to look like an utter dipstick.

Silverbull

Chucky do you think all these getting house benefit in London will stay in London when most of their 500wk is going to pay their rent and council tax?

If they move away from London they will be able to keep more of their 500wk for food and living.

Do not forget this cap applies to everyone pensioners or disabled, those families with low earnings, everyone.