Changes to Housing benefit how much will rents fall?

RDB

No it will affect everyone who at the moment are claiming more than about £250 housing and council tax.

So many who are in 1 or 2 bed flats in London are getting more than this at the moment.

ukcarper

RDB wrote: »

Those links with those figures are talking about next April cap of 400wk.

We were talking about the yr after when 500wk total ben cap. This will bring the 400wk down to 250-300.

I cant find any figures for how manyin London will be affected by this.

Where does this £250 a week figure come from, someone on £15k a year takes home less than £250 a week are you say all the people earning that are paying no rent and council tax.

crazygaijin

It is really only families with a couple of kids that live in London that will be getting more than £250 a week rent and council tax benefit.

Either they try and rent a smaller place or in a cheaper area.

£250 a week is about the limit after the £500 cap. It is about £100wk average child tax credit and £100wk working tax credit or JSA plus £30 - £50 wk child benefit.

So to be under £500wk all benefits most `poor` families will have to move away from London.

ukcarper

What I am getting at is that there seems to be an assumption that a family needs £200 to £250 a week to live on after paying rent and council tax where does that figure come from.

Shakethedisease

65% of all claims affected by the LHA cap in west london are for 1 or 2 bed properties. 85% are in 1,2 or 3 bed properties. although some 3 beds are still likely to be hit by the 500pw cap, in most areas this is still not going to be the holocaust that some people are trying to say that it will be.

Remember that those singles under 35 living on one bed-room flats will only be getting a shared room rate when the cuts kick in ( up from age 25 ).

Jazzshed

Graham_Devon wrote: »

LOL. They can't even afford to rent a place without help.

Where is the magical money going to come from to simply commute?

As I said...last time this was discussed, all these ideas were just dreampt up. The only thing that was categorical in all of the ideas was the landlord would not lose a penny.

Everyone will simply move en masse to different counties. They will commute on magic money. Landlords will have new renters bashing on their doors pleading with them to rent their overpriced place and it will not, under any circumstances whatsoever, have any negative impact on prices of rent or prices of houses. Infact, it was decided last time that it would put upward pressure on prices....cus all those who rented would be moving to cheaper places pushing the prices up.

Was amusing to say the least.

Ha yes, there will be this mass exodus out of London and all these empty properties, but the bottom line is -the Land Lords will not lose out!

In the real world however rents and house prices will fall significantly in the expensive parts of London. They are expensive partly because housing benefit has pushed up prices, that is about to be taken away.



I can see however some areas in the country that have very cheap rents right now may have a lot of these benefit claimants moving there, this may put rents up slightly in some low prices areas.

It will be a good thing all round.

stelaconcepts

ukcarper wrote: »

What I am getting at is that there seems to be an assumption that a family needs £200 to £250 a week to live on after paying rent and council tax where does that figure come from.

The fact is that if someone can choose to live in a cheap area and have £200 to £250 a week to live on after paying rent and council tax or live in London and have much less then they will choose to move away.

Thats where that figure comes from.

ukcarper

stelaconcepts wrote: »

The fact is that if someone can choose to live in a cheap area and have £200 to £250 a week to live on after paying rent and council tax or live in London and have much less then they will choose to move away.

Thats where that figure comes from.

I don’t think it is as simply as that and a lot of people will stay put a live on less.

Jowo_2

ukcarper wrote: »

..
Where in London are they going to find all those properties?

I think the highest concentration of tenants affected by the LHA cap are in inner central London so the local councils will make arrangements to transfer the tenants to other boroughs.

Someone whose rent may be excessive compared to their LHA in Pimlico will probably find they only have to move 5 miles south into the cheaper parts of Southwark, like Peckham, for example. That's still Zone 2 on the transport map while somewhere like Walthamstow, E17 is Zone 3 but the tube line gets travellers into Oxford street in 20 mins.

According to this article councils are reserving accommodation in places as far as Slough, Watford, Hastings and Reading to prevent homelessness in households forced to move by significant reductions in LHA.

http://www.insidehousing.co.uk/news/housing-management/councils-to-move-lha-claimants-out-of-london/6512167.article

ukcarper

Jowo wrote: »

I think the highest concentration of tenants affected by the LHA cap are in inner central London so the local councils will make arrangements to transfer the tenants to other boroughs.

Someone whose rent may be excessive compared to their LHA in Pimlico will probably find they only have to move 5 miles south into the cheaper parts of Southwark, like Peckham, for example. That's still Zone 2 on the transport map while somewhere like Walthamstow, E17 is Zone 3 but the tube line gets travellers into Oxford street in 20 mins.

According to this article councils are reserving accommodation in places as far as Slough, Watford, Hastings and Reading to prevent homelessness in households forced to move by significant reductions in LHA.

http://www.insidehousing.co.uk/news/housing-management/councils-to-move-lha-claimants-out-of-london/6512167.article

What I meant was where are all the empty properties in those areas.