Debate House Prices
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Impact of Housing Benefit Cuts
Comments
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neverdespairgirl wrote: »Housing is definitely a priority. But a lot of people could downsize if they had to, and still be housed.
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But that is one of the problems of a falling market downsizing becomes less attractive.0 -
neverdespairgirl wrote: »My parents have a large 6 bed, 4 reception room house, with 4 bathrooms. At one time, there were 7 people living there. Now it's just my parents. They certainly need somewhere to live, but it could be a smaller somewhere.Nothing is foolproof, as fools are so ingenious!0
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Yes more people will be forced to downsize as the cuts come in. Then their old big houses will somehow house even more people.
The fact is these cuts coming in will bring down the average rents and house prices. If they come in just as interest rates go back up and many more distressed sellers then we could see significant falls.
well, if the price of an average 4 bed house in westminster falls by, say £100k, this means that the average house price for england and wales falls, that is correct.
but it only helps you if you're buying a 4 bed house in westminster.
you still haven't explained how this is going to reduce average prices outside the affected parts of inner london.0 -
HAMISH_MCTAVISH wrote: »Indeed.
Just like all those single FTB-s complaining they can't buy a 3 bed semi on the average wage could start with something smaller....;)
Precisely so. Housing is a need, a certain size of housing isn't necessarily....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
tartanterra wrote: »Sounds ideal to turn into an HMO. You could get plenty of tenants in there and turn quite a profit.
I doubt the neighbours would like it - it's also probably worth more as a large family house than an HMO, with things like large halls and landings....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
chewmylegoff wrote: »perhaps 4 bed properties in westminster will fall in price, but i doubt this will have a generalised knock on effect across all property in the area, and it seems unlikely to have much effect at all outside london.
Irrespective of location, local Councils are always amongst the richest bidders for rental property and are seen as an easy touch by landlords. If you slash the spending power of the biggest bidder, this cannot do anything other than push rents down. It seems likely that the falls will be higher outside London where there are fewer high net worth individuals.0 -
Irrespective of location, local Councils are always amongst the richest bidders for rental property and are seen as an easy touch by landlords. If you slash the spending power of the biggest bidder, this cannot do anything other than push rents down. It seems likely that the falls will be higher outside London where there are fewer high net worth individuals.
except the caps are only going to bite within london.0 -
chewmylegoff wrote: »except the caps are only going to bite within london.0
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chewmylegoff wrote: »except the caps are only going to bite within london.
I do not agree. London will be hit hardest in absolute terms per house but the biggest impact will be outside London (see the bit in red).The key changes from April 2011
LHA levels will be restricted to the 4 bedroom rate and a new upper limit will be introduced for each property size, with upper limits (capping) set at: £250 a week for a 1 bedroom LHA rate
£290 a week for a 2 bedroom LHA rate
£340 a week for a 3 bedroom LHA rate
£400 a week for a 4 bedroom LHA rate (maximum)- The Government will end the maximum £15 weekly Housing Benefit excess that some people now receive. This means you will not be able to get more money from Housing Benefit than you pay in rent.
- Where you have an extra bedroom that is used by someone whilst providing necessary overnight care for you or your partner this can be included where the carer lives elsewhere. If you are unsure about whether this extra room allowance might apply speak to the Housing Benefit team in your local authority.
- Local Housing Allowance rates will reduce to a lower amount so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than 5 in 10 properties as now. The new rates will be at what is known as the 30th Percentile.
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HAMISH_MCTAVISH wrote: »Indeed.
Just like all those single FTB-s complaining they can't buy a 3 bed semi on the average wage could start with something smaller....;)
Why buy something smaller most people believe if they wait house prices will fall further then buy the 3 bed semi...........0
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