£480 wk ben cap not enough for families in London to live on.

ukcarper

monetaryPMbull wrote: »

True but the cap will bring down average rents, so get ready for lower rents and property prices all round.



It doesn't matter how many are getting £1000's per week.

Does anyone know how many housholds are getting more than around £240 in rent and council tax benefit? Because these are the ones who will either have to move to cheaper area, or use the other half of their benefit for rent. I do not think many will choose to use their other money for rent.

Any LL's wanting to charge more than around £200 for their property will have a hard time finding a tenant one the cap comes in.

I think you might be surprised at how many people who aren’t on housing benefit will pay more than £200 a week rent in the areas where LHA is above that.

monetaryPMbull

ukcarper wrote: »

I'd agree it's to many as you don't have to move to far away to reduce it considerably, but have you any real proof that it is several hundred .

I would guess several thousand housholds get more than £200 per week housing benefit. This is the figure that needs to thought about. Anything over £200 a week will need to find someone who will pay out of their own pocket.

Average prices will come down all over.

But some areas that are very cheap now, will not have any problem finding tenants as long as the property is under £200 per week.

Kirri

monetaryPMbull wrote: »

No doubt that the high housing benefit payments have pushed up rents. Greedy LL's will have a hard time finding tenants now for any properties over £240 a week.

Where are you in outer London? I mean £650 for a studio? What will al the families with kids do in your area when they all need to find a place for about £200 a week?

Sorry I should have said that is per month, but the cost has risen considerably in the last few years and I still think that is a lot for rental. Every flat that gets sold in my block though seems to go to yet another BTL landlord rather than an owner to actually live in.

FTBFun

Two more sockpuppets. Yippee.

monetaryPMbull

ukcarper wrote: »

I think you might be surprised at how many people who aren’t on housing benefit will pay more than £200 a week rent in the areas where LHA is above that.

I think you would be surprised how many people are getting more than £200 a week housing and council tax benefit in areas where the rent would not be so high if the government was not paying out so much in housing benefit.

Yes there are those who will pay out of their own pocket, but these ones will be very pleased when the cap comes in and rents fall considerably.

ukcarper

monetaryPMbull wrote: »

I think you would be surprised how many people are getting more than £200 a week housing and council tax benefit in areas where the rent would not be so high if the government was not paying out so much in housing benefit.

Yes there are those who will pay out of their own pocket, but these ones will be very pleased when the cap comes in and rents fall considerably.

Where I live in the southeast properties generally rent out for more than the LHA rate. I’m sure that the £25k cap will have an effect in some areas mainly in London but it’s much more complicated than you seem to be making out.

monetaryPMbull

ukcarper wrote: »

Where I live in the southeast properties generally rent out for more than the LHA rate. I’m sure that the £25k cap will have an effect in some areas mainly in London but it’s much more complicated than you seem to be making out.

I have said its only London that will be affected really. But the knock on effect will affect the rest of the country.

Doing a little research someone I asked said its could be hundreds of thousands of people are getting over £200 a week housing benefit. Most if not almost all of these are in and around London.

Its very simple, no limit to how much housing benefit has been paid out has pushed and held up rents and with them property prices.

Prices will fall in London when this prop holding up high prices comes out.

ukcarper

monetaryPMbull wrote: »

I have said its only London that will be affected really. But the knock on effect will affect the rest of the country.

Doing a little research someone I asked said its could be hundreds of thousands of people are getting over £200 a week housing benefit. Most if not almost all of these are in and around London.

Its very simple, no limit to how much housing benefit has been paid out has pushed and held up rents and with them property prices.

Prices will fall in London when this prop holding up high prices comes out.

I’m sure property prices will fall in some areas but will they fall enough to allow the people already claiming LHA to stay and if not what will be the effect on prices in the area they move to.

drc

ukcarper wrote: »

Does anyone know how many people are getting thousands of pounds a week?

The closest I could find was a FOI request regarding how many people are being paid £1000 per month and £2000 per month in housing benefit in Westminster;

http://www.whatdotheyknow.com/request/housing_benefit_28

Black, Phil
Westminster City Council

15 November 2011


Mr Mclean

Please find the information you requested.

As HB is awarded and paid based on weekly amounts so I’ve taken the figures based on amounts paid every 4 weeks (rather than calendar monthly).

For all live claim types (excluding suspended) there are currently

6338 claims paying over £1000 (i.e over £250 pw) – including those paying over £2000 per month
and 1220 claims paying over £2000 (i.e. over £500 pw)

My sincere apologies for the delay in providing this information.

Thanks

Phil Black
Contracts Performance Manager
Contracts Performance Team
Westminster City Council

Tel - 0207 641 2678
Fax - 0207 641 3458

monetaryPMbull

ukcarper wrote: »

I’m sure property prices will fall in some areas but will they fall enough to allow the people already claiming LHA to stay and if not what will be the effect on prices in the area they move to.

Be interesting to see. I would guess that LL's can't lower their rents in line with the cap and still afford their mortgages. So all those paying over £200 a week housing benefit will be forced to move away somewhere cheaper and we could see large number of repossessions in some area's.

We could see some low value areas go up as these smart benefit claimers who want to keep as much of their capped amount as they can, move to areas like Wales and cheap rental areas. Soon rents will rise in these areas as well.