Changes to Housing benefit how much will rents fall?

RDB

Damaged wrote: »

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.

No mistake I did mean 2k per week. I know this is only in London but thats what we are talking about rent reduced in London. There are so many families getting over 1K week, but anyone getting over 400 a week will be affected. Its probably true that 90% of London will be affected. Because if you qualify for less than 3 bed then its less than 400week you will get. If you are getting 330 for a 2 bed place it will be reduced to 290 and every year go down even more as inflation and everything else goes up.

Any way talking about converting big houses into several flats.......

neverdespairgirl wrote: »

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

If this is true then these LLs are really going to be stuck. They will see their rental income go down from 2K week to 400wk. This may stop all these foreign investors buying houses in London because there is nowhere else to invest their money around the world.

Surely no one will pay these huge rents out of their own pocket when the government stops paying them. If they could afford that they would have bought a place by now.

IveSeenTheLight

Generali wrote: »

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.

I'm not going to disagree with your anecdote, but the post was in reply to the position proposed that everyone would be looking to move to the cheaper properties as a result of the HB changes, thus driving down all rents.

I just don't see it myself.

14,000 out of 3.8 million is a drop in the ocean

MikeJ74

IveSeenTheLight wrote: »

I'm not going to disagree with your anecdote, but the post was in reply to the position proposed that everyone would be looking to move to the cheaper properties as a result of the HB changes, thus driving down all rents.

I just don't see it myself.

14,000 out of 3.8 million is a drop in the ocean

Do most on here agree that the changes will affect 90% of London?

What will happen come April is going to be very interesting.

silvercar

MikeJ74 wrote: »

Do most on here agree that the changes will affect 90% of London?

What will happen come April is going to be very interesting.

Whatever effect there is will be gradual. Anyone on an AST at the time will face funding the drop in HB themselves. Remember the tenant has signed an agreement with the landlord to pay the agreed rent, should the tenant not pay they risk CCJ and eviction, so they will try to fund the shortfall themselves initially. Then the tenant has to either cope with loss of disposable income, negotiate a lower rent or move to a cheaper property. So the effect will be gradual.

They may be an effect over the next few months, far-sighted tenants may decide to look for an affordable property now, so that they get the pick of what's available before the perceived rush.

neverdespairgirl

RDB wrote: »

Any way talking about converting big houses into several flats.......



If this is true then these LLs are really going to be stuck. They will see their rental income go down from 2K week to 400wk.

For example, Camden's policies state:

Therefore, the Council will generally seek to resist proposals which would result in the loss, without replacement, of a house in multiple occupation of an acceptable standard, i.e. which complies with, or is capable of reaching, the appropriate standards under environmental health legislation. The conversion or change of use of a HMO may be considered acceptable where the use is replaced by permanently available affordable housing. The conversion of non-self-contained
units to self-contained flats may be allowed if a planning obligation is secured that prevents the new units being sold separately or converted into larger units and sets a maximum rent level to maintain affordability.

and

The conversion of a property to provide one bedroom flats will generally be considered acceptable provided this does not involve the net loss of units with 3 or more bedrooms.

chucky

RDB wrote: »

Not good news for landlords trying to rent out their properties just as we near the time when rates go up and monthly mortgage payments could go higher than the rental income.

i have a tenant moving at the end of the month with a new one moving in the next day.

the rent will be 5% higher than it was a year ago.

rents don't seem to be falling where i am.

that's good news for me not sure about you...

silverjunky999

chucky wrote: »

i have a tenant moving at the end of the month with a new one moving in the next day.

the rent will be 5% higher than it was a year ago.

rents don't seem to be falling where i am.

that's good news for me not sure about you...

I think he is talking about the next few years.

lynzpower

neverdespairgirl wrote: »

For example, Camden's policies state:

Therefore, the Council will generally seek to resist proposals which would result in the loss, without replacement, of a house in multiple occupation of an acceptable standard, i.e. which complies with, or is capable of reaching, the appropriate standards under environmental health legislation. The conversion or change of use of a HMO may be considered acceptable where the use is replaced by permanently available affordable housing. The conversion of non-self-contained
units to self-contained flats may be allowed if a planning obligation is secured that prevents the new units being sold separately or converted into larger units and sets a maximum rent level to maintain affordability.

and

The conversion of a property to provide one bedroom flats will generally be considered acceptable provided this does not involve the net loss of units with 3 or more bedrooms.

Indeed since April, all HMOs need planning permission - as well as meeting the EH standards you describe. Delay city ( possibly)

Other authorities take a different approach, including refusing PP for conversions to studio flats. ( will find the link later)

MrEnglish

silvercar wrote: »

Whatever effect there is will be gradual.

Yes it will be gradual, but I think we should see average rents in London fall straight away.

As housing benefit fall every year from now on along with other benefits and the other cuts, rents and house prices should go lower over the next few years.

chucknorris

chucky wrote: »

i have a tenant moving at the end of the month with a new one moving in the next day.

the rent will be 5% higher than it was a year ago.

rents don't seem to be falling where i am.

that's good news for me not sure about you...

I've just put up my rents too chucky, not by much though, just over 2%.

I was going to put them up more but as I have just started a new career coming out of early retirement. I didn't want to run the risk of all that extra effort of remarketing properties just when I am trying to settle into not only a new job but also a new career.

In fact I am thinking that I may just sell up (at least partially) when interest rates go back up to around 5%. As I have made enough now and could do without the hassle. But as profits are sky high at the moment due to having tracker mortgages it would be madness to sell up now. We were looking to buy another property but I am having a re-think and nowhere as keen as my wife, not because I think it's a poor investment, it's because I think it's time to start enjoying ourselves more rather than putting time and effort into investing activities, as we have no children there is no one to leave it all to, so what's the point in making more?