Changes to Housing benefit how much will rents fall?

Silverbull

It will not matter how many children over 10 of different genders are in a family. The 500wk cap will mean only about 250 max for rent and maybe up to 70wk max council tax. A family can just about pay the bills on 180wk but this is extreme most big families will not be able to live on 180wk after rent/council tax.

MikeJ74

Silverbull wrote: »

It will not matter how many children over 10 of different genders are in a family. The 500wk cap will mean only about 250 max for rent and maybe up to 70wk max council tax. A family can just about pay the bills on 180wk but this is extreme most big families will not be able to live on 180wk after rent/council tax.

So the 500 cap will mean no families with more than a few kids can live in London unless they pay their own way. Good thing too.

So after child benefit and tax credits how much will be left for rent and council tax?

Or after disability living allowance/income support and all the other little things here and there that top up these benefit claimers.

I think it will be less than 250 per week rent and 70 week council tax benefit. More like 300 per week maximum a family will be able to afford for rent and council tax. They will need at least 200 per week for food and clothes and paying the bills.

olly300

Silverbull wrote: »

It will not matter how many children over 10 of different genders are in a family. The 500wk cap will mean only about 250 max for rent and maybe up to 70wk max council tax. A family can just about pay the bills on 180wk but this is extreme most big families will not be able to live on 180wk after rent/council tax.

That's a hell of a lot of money for council tax.

A £250 a week property in the parts of London I know would be a band C or D for council tax. The maximum council tax would be half that per year and in many cases much lower.

chucky

Silverbull wrote: »

That`s right some are getting up to £4500 per week.

some is not many but for the effect of this forum it must be thousands...

rents will fall by 85% in London

carolt

Silverbull wrote: »

It will not matter how many children over 10 of different genders are in a family. The 500wk cap will mean only about 250 max for rent and maybe up to 70wk max council tax. A family can just about pay the bills on 180wk but this is extreme most big families will not be able to live on 180wk after rent/council tax.

That's true.

I hadn't thought of that.

An excellent point. Thanks, silverbull.

Gosh, that will have a huge impact on where people who depend on housing benefit can live - it will mean the £400/week housing benefit cap proposed is actually reduced at one fell stroke to a figure nearer half that. Which will likewise have a huge knock-on effect on the demand-side of the London rental equation. Assuming supply does not change, there are going to be a hell of a lot of landlords chasing a greatly reduced pool of tenants who can afford to pay anything like what they were hoping to get.

Which means huge drops in rents.

IveSeenTheLight

carolt wrote: »

That's true.

I hadn't thought of that.

An excellent point. Thanks, silverbull.

Gosh, that will have a huge impact on where people who depend on housing benefit can live - it will mean the £400/week housing benefit cap proposed is actually reduced at one fell stroke to a figure nearer half that. Which will likewise have a huge knock-on effect on the demand-side of the London rental equation. Assuming supply does not change, there are going to be a hell of a lot of landlords chasing a greatly reduced pool of tenants who can afford to pay anything like what they were hoping to get.

Which means huge drops in rents.

Where are the people that can't afford going to live?

Your not getting back on the "woohoo benefits are dropping so it will affect LL's, just don't drop my benefits bike"?

ukcarper

I have no idea what the drop in benefits will do to the price of property in London.

But the thing I would like to know is if there is a mass exodus from London where are the people going to go. I live about 30 miles from central London and there is not an abundance of unoccupied rental property anywhere near me.

MikeJ74

ukcarper wrote: »

I have no idea what the drop in benefits will do to the price of property in London.

But the thing I would like to know is if there is a mass exodus from London where are the people going to go. I live about 30 miles from central London and there is not an abundance of unoccupied rental property anywhere near me.

That`s right, these people on low earnings will have to move a long way from London if they want to keep a big chunk of their 500 benefit cap for themselves.

Maybe Wales or something. What will all the local people think of all these benefit claimants suddenly moving into these cheap areas? If unemployment was bad in these areas what will it be like in the future?

But it will reduce the housing benefit time bomb and that is more important than unemployment rising.

chucky

ukcarper wrote: »

I have no idea what the drop in benefits will do to the price of property in London.

But the thing I would like to know is if there is a mass exodus from London where are the people going to go. I live about 30 miles from central London and there is not an abundance of unoccupied rental property anywhere near me.

logical arguments don't have a place on this forum...

who's going to do all the jobs if these people move away to Wales?

Silverbull

olly300 wrote: »

That's a hell of a lot of money for council tax.

A £250 a week property in the parts of London I know would be a band C or D for council tax. The maximum council tax would be half that per year and in many cases much lower.

I`m talking about a £250 a week property after the falls. Who knows how much the inflated rent is at the moment.

But for the big families (few kids) that we are talking about they are getting several hundred or even thousands of pounds a week just for rent at the moment. These would be band B or even A.

Rents can fall when supply is greater than demand but council tax only ever goes up.