Changes to Housing benefit how much will rents fall?

chucky

careinthecommunity wrote: »

thanks olly300

I was playing devils advocate on the fact that there is 16% population of the uk living in london due to employment, yet london has high unemployment, therefore the cuts will have an impact on rents (no?)

I admit i still need to do some reading on this

you make a very good point but the areas with the £400 a week and higher rents aren't really going to be the areas with high unemployment - the areas with high unemployment would have cheaper rents anyway.

chucky

Graham_Devon wrote: »

I really rattled your feathers didn't I

you never do - if it makes you feel that you did, you keep on thinking that way. you obviously need people to think that so it makes you feel better.

keep it up, it's not my fault that you're slow.

careinthecommunity

chucky wrote: »

you make a very good point but the areas with the £400 a week and higher rents aren't really going to be the areas with high unemployment - the areas with high unemployment would have cheaper rents anyway.

i agree,
(do not advocate knowledge only alcohol thinking)

so doesnt that mean that those who are on the border line (top-ups etc) would move out of those areas into the cheaper rent areas? and with the low job creation opportunitues (dont think i mention this before) in london to sustain the higher living costs, will this not put some downward presure on the rents?

olly300

careinthecommunity wrote: »

thanks olly300

I was playing devils advocate on the fact that there is 16% population of the uk living in london due to employment, yet london has high unemployment, therefore the cuts will have an impact on rents (no?)

I admit i still need to do some reading on this

(I'm watching Xfactor while writing this)

I wouldn't bother doing any reading on this as there are too many factors to consider.

For example:
1. The transient nature of London's population - there are lots of new people to the capital everyday and they all need somewhere to live but lots of people move out of the capital freeing up properties.

2. The number of council owned or HA properties where the rents are lower than in the private sector. Those who are working full-time can afford those rents without help there as those on benefits may be able to claim their rent.

3. The number of unemployed/disabled/pensioners not living on their own so not able to claim any housing related benefits.

4. The number of private landlords who charge lower rents than average so regardless of what tenants they have they won't have to lower their rents if HB is cut.

5. The fact that rental price depends also depends on supply and demand. Rents have gone up again but were falling. In fact around me they are still lower than what they were 2 years ago.

6. The fact that many landlords refuse to take those on HB and will chuck out tenants they find out are claiming.

chucky

careinthecommunity wrote: »

i agree,
(do not advocate knowledge only alcohol thinking)

so doesnt that mean that those who are on the border line (top-ups etc) would move out of those areas into the cheaper rent areas? and with the low job creation opportunitues (dont think i mention this before) in london to sustain the higher living costs, will this not put some downward presure on the rents?

yes it will do but it will put increased pressure on the areas that the people are moving to.

unless someone can produce numbers to show those £3,000 a month rentals that Devon was spouting about these are the exceptions not the norm, they're Daily Mail arguments. there are thousands of properties at half of this rent within London.

the market will find it's own level but there won't be a crash in rental values as people seem to be predicting on here.

careinthecommunity

olly300 wrote: »

(I'm watching Xfactor while writing this)

I wouldn't bother doing any reading on this as there are too many factors to consider.

For example:
1. The transient nature of London's population - there are lots of new people to the capital everyday and they all need somewhere to live but lots of people move out of the capital freeing up properties.

2. The number of council owned or HA properties where the rents are lower than in the private sector. Those who are working full-time can afford those rents without help there as those on benefits may be able to claim their rent.

3. The number of unemployed/disabled/pensioners not living on their own so not able to claim any housing related benefits.

4. The number of private landlords who charge lower rents than average so regardless of what tenants they have they won't have to lower their rents if HB is cut.

5. The fact that rental price depends also depends on supply and demand. Rents have gone up again but were falling. In fact around me they are still lower than what they were 2 years ago.

6. The fact that many landlords refuse to take those on HB and will chuck out tenants they find out are claiming.

i am the same, apparently i made the wife walk aroud town today so therefore we have to watch x factor...

i dont profess knowledge and do still need some reading so i am going to repectfully bow out

careinthecommunity

chucky wrote: »

yes it will do but it will put increased pressure on the areas that the people are moving to.

unless someone can produce numbers to show those £3,000 a month rentals that Devon was spouting about these are the exceptions not the norm, they're Daily Mail arguments. there are thousands of properties at half of this rent within London.

the market will find it's own level but there won't be a crash in rental values as people seem to be predicting on here.

wow, i am here for knowledge and a chat as this is something i am genuinly interested in, and please do not include me in a spat with another user ...


i will bring this topic down to mumsnet now......

he had ruined that song and michael stripe should sue, also does anyone think that mrs cashly only outed that gamu because she could actually sing (a lot more than her) ...

sorry for bringing this into disrepute...

olly300

careinthecommunity wrote: »

wow, i am here for knowledge and a chat as this is something i am genuinly interested in, and please do not include me in a spat with another user ...

I've been ignoring them and just replying to you.

careinthecommunity wrote: »

i will bring this topic down to mumsnet now......

Mumsnet would kill them.

carolt

careinthecommunity wrote: »

wow, i am here for knowledge and a chat as this is something i am genuinly interested in, and please do not include me in a spat with another user ...


i will bring this topic down to mumsnet now......

he had ruined that song and michael stripe should sue, also does anyone think that mrs cashly only outed that gamu because she could actually sing (a lot more than her) ...

sorry for bringing this into disrepute...

mumsnet?

You haven't read mumsnet, have you.

Go have a look - you'll find that X factor doesn't feature highly.

Silverbull

Graham_Devon wrote: »

Quite clearly it's not made up.

The government has already stated some are getting over £4000 a month in housing benefits.

So my £3000 example, will be happening, I just don't know exactly how many households will be taking £3,000 in HB payments. I don't need to have a link to a website, to prove it.

You do try hard, I'll give you that.

That`s right some are getting up to £4500 per week. Surely not many families, but it seems there are many families with a few kids and are either not in work (sick ben) or something similar, or they earn a low wage.

It also seems to be getting £1000 per week or £2000 per week is common for families in the centre of London. Even if you earn an above average wage these families just can not pay rent like that without housing benefit.


What many seem to be forgetting when they come up with figures is that this £500 per week benefit cap will include everyone. Pensioners disabled everyone.

I just do not see these ones staying in London unless rents come down a long way.

People will soon realise that if they move to cheaper areas they will have more of their benefit for themselves unlike now where they may as well live in London because the rent is paid whatever it is.

This has no doubt propped up rents and now the props will be taken out.