Changes to Housing benefit how much will rents fall?

Dell

It will take time, but that time is rapidly approaching.

In a few months the first of the benefit cuts will come in. Cost of living is going up while wages and benefits are coming down.

Jowo_2

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.

I can see why the cushion of high LHA does artificially prop up rents in London and there could be changes when the maximum caps are brought in.

However, I can't see an overall drop in demand for people to rent in the city - it's a magnet to migrants, new graduates, job seekers and it's population is still expanding despite the alleged 'white flight' of families from it.

In addition, some of those who would have put their properties on the market are deterred by the state of the sales market are staying put, and some of those who want to buy in London cannot because mortgages are harder to get than in the past so they have to rent.

So I think those factors are actually making the rental market even more competitive - shrinking number of properties to rent and more tenants seeking it?

Yoshua

Jowo wrote: »

I can see why the cushion of high LHA does artificially prop up rents in London and there could be changes when the maximum caps are brought in.

However, I can't see an overall drop in demand for people to rent in the city - it's a magnet to migrants, new graduates, job seekers and it's population is still expanding despite the alleged 'white flight' of families from it.

In addition, some of those who would have put their properties on the market are deterred by the state of the sales market are staying put, and some of those who want to buy in London cannot because mortgages are harder to get than in the past so they have to rent.

So I think those factors are actually making the rental market even more competitive - shrinking number of properties to rent and more tenants seeking it?

You are right about the state of sales market and not many can buy in London because houses are still unafordable.

But when the cuts come in what will all these ones do who are relying on HBenefit to pay their rent? I`ll tell you what they will do they will move somewhere cheaper.

Jowo_2

Yoshua wrote: »

...
But when the cuts come in what will all these ones do who are relying on HBenefit to pay their rent? I`ll tell you what they will do they will move somewhere cheaper.

Those that face HB cuts will have to move somewhere cheaper (or find employment to pay the higher shortfall between rent and LHA if that's a feasible option).

This will free up some of the more expensive properties in central London so instead of low income families occupying the bedrooms, they will be occupied by professional house sharers.

Those in employment can afford the rent between them as they'll earn 20k and over and be used to paying the majority of their earned income on bills.

novazombie

Jowo wrote: »

Those that face HB cuts will have to move somewhere cheaper (or find employment to pay the higher shortfall between rent and LHA if that's a feasible option).

This will free up some of the more expensive properties in central London so instead of low income families occupying the bedrooms, they will be occupied by professional house sharers.

Those in employment can afford the rent between them as they'll earn 20k and over and be used to paying the majority of their earned income on bills.

So lots of people will have to move out of London if they cant just go out and earn more? Also lots of professionals will start sharing these expensive properties. What will happen to all the empty properties these professionals just moved out of?

Sounds to me like supply will increase and demand will go down in London?

ukcarper

novazombie wrote: »

So lots of people will have to move out of London if they cant just go out and earn more? Also lots of professionals will start sharing these expensive properties. What will happen to all the empty properties these professionals just moved out of?

Sounds to me like supply will increase and demand will go down in London?

Like I've said before they might prefer to move to a smaller house close to their friends and family.

stelaconcepts

ukcarper wrote: »

Like I've said before they might prefer to move to a smaller house close to their friends and family.

Smaller house? Yes smaller property but maybe not a house and almost certainly outside London when the Housing benefits cuts come in.

ukcarper

stelaconcepts wrote: »

Smaller house? Yes smaller property but maybe not a house and almost certainly outside London when the Housing benefits cuts come in.

I believe the total benefit cap is going to be set at about £26k there are houses in London for less than a £1200 per month which would leave you almost £1000 a month after rent. I’m sure some will move out but others will move to smaller properties in cheaper areas.

drc

How are the changes to housing benefit/LHA actually going to work now? I know they have postponed the ceiling caps but they are bringing in the 30 percentile cap to April. So, if someone is on LHA which is renewed every, say August, would the reduction of their rent payable to the 30th percentile happen this August? It's not really clear.

sellaconcepts

I thought the total benefits cap will be £500 per week per household. This has to include everything. So any family with more kids than days working (I like that) will have to move out of London. That is if they want a sizable portion of there £500 for food and living.