Changes to Housing benefit how much will rents fall?

RDB

What I can see happening is these big houses that the government is paying 2grand a week housing ben will be made into half a dozen studio flats.

Its the only way really. No one will pay 2 grand a week for these houses without housing ben, so the LLs are now going to have to spend thousands converting them into more multiple flats.

It just means even though the number of houses remains the same, the number of homes in the UK will be going up a lot. One big house can be 6 homes for 6 couples or small families.

Its getting like that in London now, a normal looking big house and the front door has 6 doorbells.

This is what I see happening more and more.

Average rents are going to be falling for years to come and people will have to get used to living in smaller places if they want to live in London.

Damaged

Shakethedisease wrote: »

Government figures are all fine and well, ( *spin*).. however, you might be better reading what the biggest lettings angency in the Uk had to say a few days back...



http://www.yourmortgage.co.uk/news/3626984

90% affected in London according to the uk's biggest lettings agency.

Of that, 34% that 'expect' their tenants to make up the the lost housing benefit ( good luck with that, they're already on benefits because they can't afford the rent ).. and most that would ask their current dss tenants to leave. That means there will be an awful lot of landlords issuing section 21's.. and hoping to get new tenants from those aren't in receipt of benefits.

Supply and demand alright. And it'll be landlords competing for 'prime tenants'. And I'm not sure where the rest of the tenants are going.. don't think the government does either tbh ( but that's another thread).

But don't kid yourself that 'things will just stay the same' for everyone. Because the whole 'supply and demand' thing is about to be shaken up like a big snow-globe. It may not be your particular properties 'in demand' any more, just the kind of tenant you, and every other landlord out there, wants... and that means competition.

hmm vested interest anyone?

drc

RDB wrote: »

What I can see happening is these big houses that the government is paying 2grand a week housing ben will be made into half a dozen studio flats.

Its the only way really. No one will pay 2 grand a week for these houses without housing ben, so the LLs are now going to have to spend thousands converting them into more multiple flats.

It just means even though the number of houses remains the same, the number of homes in the UK will be going up a lot. One big house can be 6 homes for 6 couples or small families.

Its getting like that in London now, a normal looking big house and the front door has 6 doorbells.

This is what I see happening more and more.

Average rents are going to be falling for years to come and people will have to get used to living in smaller places if they want to live in London.

It might discourage people from having more children than they can afford in the belief that they'll get a nice big house in Maida Vale courtesy of the taxpayer.

Where I live, several of my neighbours get LHA which means that they get their rent paid in full while we have to pay ours from our own pocket. They also don't work so have a lot of leisure time. Since they have no necessity to be in London (don't need to be near a job etc), I don't see the problem with them having to move further out, since workers like myself and my husband shouldn't be subsidising non-workers desires to live in a certain area. Beggars can't be choosers.

Damaged

RDB wrote: »

What I can see happening is these big houses that the government is paying 2grand a week housing ben will be made into half a dozen studio flats.

London.

Those are very extreme cases though, or do you mean 2k per month.

At 2k you'll see house shares, so I dont think that will be an issue.
But if the 2k per week figure is correct, then even splitting it in 6 would still not work.
All in all, the above case at 2k is such a one off it is hardly the norm.

neverdespairgirl

RDB wrote: »

What I can see happening is these big houses that the government is paying 2grand a week housing ben will be made into half a dozen studio flats.

Its the only way really. No one will pay 2 grand a week for these houses without housing ben, so the LLs are now going to have to spend thousands converting them into more multiple flats.

Most London boroughs won't grant PP for that, now.

treliac

RDB wrote: »

What I can see happening is these big houses that the government is paying 2grand a week housing ben will be made into half a dozen studio flats.

What will happen to the large families currently in occupation then?

Generali

IveSeenTheLight wrote: »

Something that you may have overlooked is the availability of rental property.
You've made a number of statements in your post that everyone is looking for the cheaper property, but if there is a limit in supply.......

This has been discussed many times before and the upshot it seems is that those who are on benefits and rent will likely have to move to an area where there are cheaper rents. Less desireable places.

If you wish to live there, go ahead and save yourself some money.
Most other renters will be looking for a compromise on their quality and affordability.

I've never noticed a shortage of supply of rental property in the UK (London, Surrey and Kent). Whenever I've looked there's been plenty of stuff available and landlords have been pretty aggressively haggled down from their initially advertised rent.

Shakethedisease

What will happen to the large families currently in occupation then?

I guess if they can't afford the rent then they'll be out, and looking elsewhere. And if they can, but a landord wants to convert a large property into flats for a better return.. then they'll be out, and looking elsewhere.

neverdespairgirl

Shakethedisease wrote: »

I guess if they can't afford the rent then they'll be out, and looking elsewhere. And if they can, but a landord wants to convert a large property into flats for a better return.. then they'll be out, and looking elsewhere.

But the LL has to get PP. Most boroughs in London now won't allow the splitting of a family-sized unit into studio flats.

crazygaijin

property.advert wrote: »

Where I live the LHA for a 2 bed property is £230 per week or just under £1000 per month. The "true" figure for many of those properties is around £650/£700 a month but the "market" rent is pushed up by the inflated LHA.

An additional point is landlords offering utter !!!!! properties at £15 a week less than the LHA simply to feast off gullible tenants who value the £15 extra more than a decent place to live, largely because they are not paying for it. The higher rents then preclude them from taking employment, thus trapping them in the circle of deprivation. This LHA things is a massive black hole for government cash.

Very good point.

The £15 a week extra to the tenant will be scraped along with the reductions.

Of course this has pushed up rents to the maximum the gov will pay.

These changes are going to have a huge effect.

I think a lot of moving around next year and those LLs that thought its easy to always have someone renting out their properties will be finding it difficult from now on.