Changes to Housing benefit how much will rents fall?

chucky

HAMISH_MCTAVISH wrote: »

You are so full of !!!!!!.

"Figures compiled from the DWP’s own data show that 159,370 households across London will face a reduction in the LHA they receive by October 2013. Of these, an estimated 9,990 families could be forced to move from central London to secure cheaper accommodation elsewhere in London or outside of London."
http://www.londoncouncils.gov.uk/London%20Councils/TheimpactofHBchangesonLondon.pdf

it's always good to bring reality back to these threads - nice one Hamish.

people will do anything to try and get themselves a cheaper house, even post stuff like this on internet forums

Originally Posted by carolt Don't forget, there will now be 170,000 properties empty, looking for rich tenants to fill them.

GDB2222

HAMISH_MCTAVISH wrote: »

You are so full of !!!!!!.

"Figures compiled from the DWP’s own data show that 159,370 households across London will face a reduction in the LHA they receive by October 2013. Of these, an estimated 9,990 families could be forced to move from central London to secure cheaper accommodation elsewhere in London or outside of London."
http://www.londoncouncils.gov.uk/London%20Councils/TheimpactofHBchangesonLondon.pdf

This is based on a rubbish survey. They asked questions like 'what will you do if your tenant falls into arrears?' The right question is:
'what will you do if your tenant falls into arrears, but you can't find a better one who is able to pay?'

The reality is that landlords will have to reduce rents or see lengthy void periods. That will exert further downward pressure on local reference rents, and so on.

chucky

GDB2222 wrote: »

This is based on a rubbish survey. They asked questions like 'what will you do if your tenant falls into arrears?' The right question is:
'what will you do if your tenant falls into arrears, but you can't find a better one who is able to pay?'

The reality is that landlords will have to reduce rents or see lengthy void periods. That will exert further downward pressure on local reference rents, and so on.

how does that fit in with social rental costs apparently potentially increasing by 300%...

Rents for new tenants in the social housing sector are set to increase to about 80 per cent of the amount charged by private landlords.

http://www.metro.co.uk/news/844665-housing-rents-could-triple-after-cuts

chucky

GDB2222 wrote: »

This is based on a rubbish survey. They asked questions like 'what will you do if your tenant falls into arrears?' The right question is:
'what will you do if your tenant falls into arrears, but you can't find a better one who is able to pay?'

The reality is that landlords will have to reduce rents or see lengthy void periods. That will exert further downward pressure on local reference rents, and so on.

or how does this fit in to the theory...

Another result of the changes to Housing Benefit is that additional demand will be placed on housing in neighbouring boroughs that for now have cheaper rents.

Private landlords in these areas could well see rental demand, which is already strong, rise even further. Lawrenson feels this could also feed through into an increase in local house prices too.

http://www.residentiallandlord.co.uk/news2478.html

Jowo_2

GDB2222 wrote: »

This is based on a rubbish survey. They asked questions like 'what will you do if your tenant falls into arrears?' The right question is:
'what will you do if your tenant falls into arrears, but you can't find a better one who is able to pay?'

The reality is that landlords will have to reduce rents or see lengthy void periods. That will exert further downward pressure on local reference rents, and so on.

But ultimately in the south-east in particular where the caps affect most LHA claimants, there is considerable demand and limited supply due to continuing population growth and the fact that many buyers cannot or prefer not to get on the property ladder right now so the numbers of tenants increase.

I'm not saying that the LHA caps will not affect rent prices and the survey is accurate but there is still going to be high demand from tenants and limited supply in London and the south-east.

The churn that is created by LHA claiimants who have to move is going to be staggered over more than a year and is likely to only affect perhaps 0.5 to 1.5% percent of households.

GDB2222

chucky wrote: »

or how does this fit in to the theory...

http://www.residentiallandlord.co.uk/news2478.html

Local reference rents are, at least currently, not very local at all. All of Outer London seems to be in the same band. Moving publicly-funded tenants out of Kensington and Chelsea has to be a good thing, but I seriously wonder whether there will be enough of them to swamp the whole of Outer London?

GDB2222

By the way, I still think that survey is rubbish, but we will see.

chucky

GDB2222 wrote: »

Local reference rents are, at least currently, not very local at all. All of Outer London seems to be in the same band. Moving publicly-funded tenants out of Kensington and Chelsea has to be a good thing, but I seriously wonder whether there will be enough of them to swamp the whole of Outer London?

i don't think there will be either - but it's not as predictable as many on this thread wish for.

there will be an impact but there are too many factors at play to guarantee that these reductions will have a major impact on rents in London.

MrEnglish

Malcolm. wrote: »

The Central London Housing Allowance is predicted to take a huge hit.

_____1 ROOM _1 BED __2 BED _3 BED ___4 BED ___ 5 BED
From £140.94 £350.00 £500.00 £750.00 £1,000.00 £2,000.00
To __£137.50 £250.00 £290.00 £340.00 _ £400.00 __£400.00

Helps explain why London's local authorites have been reserving rentals in cheaper areas.

What many are forgetting is that total benefits are going to be capped at £500 per week.

So those that are thinking housing benefit will go down to £400wk will only leave them a reduced £100 of other benefits to pay council tax and live on.

If this family moved far from London into a say £250 wk rent and council tax then they would be able to keep most of their other benefits for themselves.

So once again Hamish does not understand whats going on and he blindly believes what he reads.

Hamish do you understand this £500 total benefits cap? Do you still think rents will not fall that much in London?

silvercar

MrEnglish wrote: »

What many are forgetting is that total benefits are going to be capped at £500 per week.

So those that are thinking housing benefit will go down to £400wk will only leave them a reduced £100 of other benefits to pay council tax and live on.

If this family moved far from London into a say £250 wk rent and council tax then they would be able to keep most of their other benefits for themselves.

A lot of people in receipt of housing benefit in expensive areas of London are people who are working. They only get HB because rents are so high, the rest of their income is from earnings. They don't get full rent paid but a help towards the high rents. They will be unaffected by the £500 cap.