Changes to Housing benefit how much will rents fall?

carolt

chucky wrote: »

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?

Well the ones who currently don't work...stil won't work.

The ones who are low paid will have to do the maths and decide if they can afford to live in London or have to move out, just as we had to do a few years back because we couldn't afford the rents.

It is tough, but it's a calculation that those not relying on LHA have always had to make.

In answer to your question, either (a) average rents will fall in London, probably by quite a lot, or (b) employers will have to start paying higher salaries.

In the face of a recession, which do you think is more likely?

ukcarper

carolt wrote: »

Well the ones who currently don't work...stil won't work.

The ones who are low paid will have to do the maths and decide if they can afford to live in London or have to move out, just as we had to do a few years back because we couldn't afford the rents.

It is tough, but it's a calculation that those not relying on LHA have always had to make.

In answer to your question, either (a) average rents will fall in London, probably by quite a lot, or (b) employers will have to start paying higher salaries.

In the face of a recession, which do you think is more likely?

That doesn’t answer the question where will they move to.

ukcarper

After a quick search I see there are quite a few parts of London where LHA for a 3-bed house is £300 or less.

Silverbull

ukcarper wrote: »

After a quick search I see there are quite a few parts of London where LHA for a 3-bed house is £300 or less.

Then council tax has to come out of the £500 cap. They will not be left with enough to live on.

ukcarper

Silverbull wrote: »

Then council tax has to come out of the £500 cap. They will not be left with enough to live on.

Council tax will be what £40 per week leaving £160 not enough to run a car or have nice holidays etc but enough to live on just about.

carolt

ukcarper wrote: »

That doesn’t answer the question where will they move to.

I would expect they'll move to a wide range of cheaper areas. It partly depends what incentives/compunction the govt introduces. Currently, there is support for people to stay in the same area, but read recently that is likely to go. It may be that local councils in London form links with other areas in cheaper parts of the country and automatically 'farm' all their homeless cases out there. Or there may be specific financial inducements to ge them to move to specific parts of the country.

I would imagine that, in the absence of that, people will move to other areas they have family/support networks, which obviously will vary from person to person. But will have to be cheaper - families know how much they can live on after rent/council tax have been paid, and what quality of life they want to have - I know that when our incomes were at that level there is no way we could have afforded £300/week rent - we earn more than that now, and couldn't afford it now!

silvercar

History repeating itself. There are many areas that have been gentrified that started off as housing for the poor. Hampstead Garden Suburb in North London is one. It was built to provide homes to people who couldn't afford to live in central London. Now a 3 bed semi will cost £1m and they employ private security firms to keep the oiks out of the area.

ukcarper

carolt wrote: »

I would expect they'll move to a wide range of cheaper areas. It partly depends what incentives/compunction the govt introduces. Currently, there is support for people to stay in the same area, but read recently that is likely to go. It may be that local councils in London form links with other areas in cheaper parts of the country and automatically 'farm' all their homeless cases out there. Or there may be specific financial inducements to ge them to move to specific parts of the country.

I would imagine that, in the absence of that, people will move to other areas they have family/support networks, which obviously will vary from person to person. But will have to be cheaper - families know how much they can live on after rent/council tax have been paid, and what quality of life they want to have - I know that when our incomes were at that level there is no way we could have afforded £300/week rent - we earn more than that now, and couldn't afford it now!

From other post you’ve made I think you earn in excess of £44k a year if you can’t afford £300 a week rent I suggest you need to look at how you budget.

carolt

ukcarper wrote: »

From other post you’ve made I think you earn in excess of £44k a year if you can’t afford £300 a week rent I suggest you need to look at how you budget.

Really? 44K per annum = £2,689.20 per month after tax. Are you seriously suggesting a family could afford to spend c 50% of that, or £1300 a month (which = £300/week) on rent long term???!

All normal calculations suggest spending more than 30% of your monthly take-home pay on rent/mortgage is too much.

And that's calculated from your nominal 44K figure, not what these people get - they'd be spending c £1445 out of their £2166 a month on rent/council tax - a rate of 67% - surely you're not being serious???! :eek:

Silverbull

ukcarper wrote: »

Council tax will be what £40 per week leaving £160 not enough to run a car or have nice holidays etc but enough to live on just about.

Depends how many kids.