Changes to Housing benefit how much will rents fall?

Generali

HAMISH_MCTAVISH wrote: »

So we expect London landlords to take a hit of, on average, £40 a month in a market where £1000 rents are usual.

And presumably far less elsewhere.

Again, not seeing this as the trigger for a big decline in rents or house prices.

I too wouldn't see that as a trigger for a big decline in rents or house prices. However, prices are set at the margin not the average so it is hard to predict exactly what the impact of something like this would be with certainty.

ILW

lynzpower wrote: »

Yes but what you are missing is this:

2 people working identical jobs, lets say they are nursery workers on 15k. Lets suggest that they are 45 years old

one needs housing benefit, she lives alone

one lives with her husband who works a job earning 90k, so needs no further state support.

Are you suggesting that all parents of the children in the nursery should be charged more so both can be paid more?

where do you think this extra revenue will come from to do this from the consumer?

Rates of pay (and therefore costs to the consumer) should be set by the local market rather than disorting things with indirect subsidies. This tends to make a fairer system for all.

MikeJ74

Strings wrote: »

If that is the case and I am sure it is, then these places will not be effected by the drop in Housing Benefit allowance, the owner’s clearly don’t need it to be rented out otherwise they would have lowered the price a very long time ago

Or LLs are really desperate to find tenants and only the nice places get taken.

The older places are empty even though the prices are falling.

Maybe you are right but I doubt that any LLs are happy to have their property empty for so long. Even if they can afford the mortgage payments they would still be worried about squaters.

ILW

MikeJ74 wrote: »

Or LLs are really desperate to find tenants and only the nice places get taken.

The older places are empty even though the prices are falling.

Maybe you are right but I doubt that any LLs are happy to have their property empty for so long. Even if they can afford the mortgage payments they would still be worried about squaters.

They will let them if they drop the price low enough.

crazygaijin

In my experience lately I have to agree with those who say that some flats are empty for many months until they drop the price.

I am keeping my eye on this area near Mill Hill East tube st.

These 2 flats are next to each other both been on the market for months.

The prices are coming down but not enough. I think if one of them dropped to less than 1000 month then they would get someone interested.

http://www.rightmove.co.uk/property-to-rent/property-16395618.html

http://www.rightmove.co.uk/property-to-rent/property-27208483.html

chucknorris

MikeJ74 wrote: »

Or LLs are really desperate to find tenants and only the nice places get taken.

The older places are empty even though the prices are falling.

Maybe you are right but I doubt that any LLs are happy to have their property empty for so long. Even if they can afford the mortgage payments they would still be worried about squaters.

In 19 years of being a landlord in London, with an average of about 4 investment properties I have NEVER had a void even for one day, except by choice when I chose to refurbish or redecorate between tenancies.

purch

In 19 years of being a landlord in London

I'm sorry, but that doesn't qualify you to comment of this subject.

The only comments allowed on this forum are from people who know absolutely nothing about the subject, and make it all up as they go along.

Graham_Devon

purch wrote: »

The only comments allowed on this forum are from people who know absolutely nothing about the subject, and make it all up as they go along.

Good to see you here

Damaged

MikeJ74 wrote: »

Or LLs are really desperate to find tenants and only the nice places get taken.

The older places are empty even though the prices are falling.

Maybe you are right but I doubt that any LLs are happy to have their property empty for so long. Even if they can afford the mortgage payments they would still be worried about squaters.

clearly they are not bothered otherwise they would have dropped the price to suit.

stonethrower

I live in a block with 14 flats and to my knowledge it has never been completely rented, the flat beside me was empty for about 6 months