Changes to Housing benefit how much will rents fall?

abaxas

Anyone else think this is just phase 1? No reason why there cant be a phase2 or 3.

Jowo_2

abaxas wrote: »

Anyone else think this is just phase 1? No reason why there cant be a phase2 or 3.

True, but there are already multiple changes being proposed for LHA, social housing tenure and benefits in general and I'd have thought they'd want them implemented first before announcing further changes.

What do you think phase 2 or 3 could cover?

ukcarper

Silverbull wrote: »

Thats why most will have to go further away from London. The UK is a big place.

Do you really think large numbers of people will move out of London to places where property is much cheaper? Most people like to be near their family and friends and I would imagine that they would do all they can to avoid moving out. I know the sensible thing would be to move to an area where property is cheaper and keep all of your additional benefits but that doesn’t mean everybody will do it.

Llubrevlis

ukcarper wrote: »

Do you really think large numbers of people will move out of London to places where property is much cheaper? Most people like to be near their family and friends and I would imagine that they would do all they can to avoid moving out. I know the sensible thing would be to move to an area where property is cheaper and keep all of your additional benefits but that doesn’t mean everybody will do it.

Maybe their family and friends will move away as well. Unless they are high earners. Even if they bought their home recently they may try and sell before prices fall too much.

The Nationwide says house prices will continue to fall in the near future.

http://www.bbc.co.uk/news/business-11819030

Stating the obvious really.

Hard times are coming all these cuts and wages and benefits falling and inflation in food/bills and cost of living next few years.

The main thing that will bring down rents and house prices is the reductions to housing benefit the condems are bringing in.

April 2010 HB is going to be capped and then soon after ALL benefits will be capped at £500wk per household.

This will mean a family in London on low earning/unemployed can only really afford £250wk for rent. The other £250 for council tax benefit and ALL other benefits.

There are many families in London getting more than 250wk housing benefit. Some are getting thousands of pounds per week HB alone this has gone on too long and has to come to an end. It has propped up house prices and rents but now it seems the props are being taken away.

Either rents come down or huge numbers will have to move away from London, as Boris Johnson said we are talking about "Cleansing London" of all the `poor` families.

Either way supply will go up and demand will go down, rents will fall and bring down with them house prices even more.

There is no doubt that house prices are in a long term bear market and precious metals are in a long term bull market.

Housebear51

ukcarper wrote: »

Do you really think large numbers of people will move out of London to places where property is much cheaper? Most people like to be near their family and friends and I would imagine that they would do all they can to avoid moving out. I know the sensible thing would be to move to an area where property is cheaper and keep all of your additional benefits but that doesn’t mean everybody will do it.

Just because most people do not want to move out of London does not mean they have a choice if they rely on government paying for them.

All those households getting more than £250 per week in housing benefit will not be able to continue living there after the £500 benefit cap.

It will mainly affect those families with a couple or more kids living in nice areas of London.

I would love to know the true figures how many households are getting more than £250 week in housing benefit alone?

Tulip09

I am already looking for cheaper properties to move to in my area however what i pay is very normal around this area for a 3/4 bedroom. My rent is £800 per month in advance, the council pay £639 in arrears (4 weekly). My LHA will drop another £60 per month. I have managed to find the extra by being frugal and not turning heating, not drinking/smoking and not wasting money or letting my kids have a social life or having a car etc. I have no idea where i will find another £60 from. A major problem i have found is trying to find 'reputable' landlords who will accept disabled/ or benefits tenants which is a complete nightmare despite 15 years previous refrences from landlords. Its isnt just London tenants who will be effected!

(An example)I dont manage to find somewhere cheaper in time, I will just have to pay the landlord what i recieve in benefit and sit back and wait for the eviction notice to arrive and then the council, social services & homeless charities will help me out. My landlord will lose out financially taking legal action as well as getting not enough rent to cover his mortgage etc, I will have a blemished rental history and the government will have spent more than the £60 a month housing me in BB's etc and employing staff to sort out my case! Is this situation really going to save loads of money in the long run?

ukcarper

Housebear51 wrote: »

Just because most people do not want to move out of London does not mean they have a choice if they rely on government paying for them.

All those households getting more than £250 per week in housing benefit will not be able to continue living there after the £500 benefit cap.

It will mainly affect those families with a couple or more kids living in nice areas of London.

I would love to know the true figures how many households are getting more than £250 week in housing benefit alone?

They might chose to move to a smaller property rather than move outside London last time I looked there were over 1000 properties under £250 a week available inside London over 800 were 3bedroom.

crazygaijin

ukcarper wrote: »

Do you know what percentage of private renting is LHA.

A better question is how many families get more than 250wk housing benefit. Surely its mainly in London that there are so many getting thousands a week housing ben.

MrEnglish

crazygaijin wrote: »

A better question is how many families get more than 250wk housing benefit. Surely its mainly in London that there are so many getting thousands a week housing ben.

It is only London that will see rents fall. Other parts of the country will see demand go up and supply fall as all these families move away from London.

ctrlaltdelete

MrEnglish wrote: »

It is only London that will see rents fall. Other parts of the country will see demand go up and supply fall as all these families move away from London.

Yes certain parts of the country will see demand go up as supply falls as all these ones move away from London. But I still think the average rents for the country will be down.

It will take time for landlords in London to realise that they have to reduce the rent for someone to pay out of their own pocket instead of the government paying it like they used to.