We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Exactly how little will rents fall with the housing benefit changes?
Comments
-
HAMISH_MCTAVISH wrote: »It still impacts a tiny number of people. A few tens of thousands out of 60,000,000 people in the UK.
It will be meaningless in 99% of the country.
82,000 was mentioned yesterday for London alone0 -
HAMISH_MCTAVISH wrote: »Claimants only make up a minority of private rentals. And most claimants will already be paying less than the 50th percentile maximum rent. Many will already be paying less than the proposed 30th percentile rents.
Thanks for that very useful link to the table, Hamish. I think you are wrong in the comments above. Most landlords letting to 'DSS' know exactly what the local reference rents are and charge exactly that amount. If they could realistically charge over the reference rent they would be doing that already!
So for a typical flat in my area they'll see a drop of very approximately 6%. I don't think that will break the bank, but it may then reduce local reference rents still further etc.No reliance should be placed on the above! Absolutely none, do you hear?0 -
82,000 was mentioned yesterday for London alone
BBC has it at 17,000 households.
London councils reckon more like 9,000 households.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
So for a typical flat in my area they'll see a drop of very approximately 6%. I don't think that will break the bank,
It won't break the bank.
And besides, most landlords won't reduce by the full 6%, if they even reduce at all.
Once again, housing benefits claimants are a minority of private renters.
So for example......
If in your area 25% of private renters are on housing benefits, and the reduction in benefits is 6%.
Then the most probable outcome will be something like the following:
30% of landlords dont reduce rent at all, and their tenants pay the difference.
50% of landlords reduce the rent by half the difference, and the tenant pays the other half..
20% of landlords reduce the rent by the full 6%.
And in a scenario such as that,
5% of the landlords in your area would reduce the rent by 6%.
12.5% of landlords in your area would reduce rent by 3%.
82.5% of the landlords in your area would not reduce the rent at all.
As I keep saying, the effects on local rents in 99% of the country will be barely noticable.....but it may then reduce local reference rents still further etc.
After these changes come through in full that's irrelevant as benefits will rise by CPI, not the local reference.
Which would be approx 3% a year at the moment, or roughly 10% more every 3 years.
Which doesn't seem particularly bad for landlords in the short term, but over the longer term will increase homelessness and the ghettoisation of the poor into the very cheapest slums.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
isn't it just £22 a week reduction in the most expensive areas?
doesn't seem like an issue to me0 -
isn't it just £22 a week reduction in the most expensive areas?
doesn't seem like an issue to me
The average across London is £22 a week.
The average across the Uk is just £9 a week.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »The average across London is £22 a week.
The average across the Uk is just £9 a week.
I like all this "just x amount a week" after "landlords will NOT reduce".
If it's "just" x amount a week, what's all this about landlords "WILL NOT" reduce?
Chucking out tennants for the sake of a maxium on average £70 a month seems a bit crazy. Especially considering any possible void period after chucking tennants out.0 -
Where I am in North London on a 2 bed flat, it's a reduction from £230 to £218 per week. If there were an extra £12 a week to be got out of tenants, some landlords would be charging £12 extra right now.No reliance should be placed on the above! Absolutely none, do you hear?0
-
that's not really a lot is it...HAMISH_MCTAVISH wrote: »The average across London is £22 a week.
The average across the Uk is just £9 a week.
it's good to bring these facts to the forum - i'm sure the usual suspects will be along in a moment to 'muddle' these facts...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards