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

ukcarper

Graham_Devon wrote: »

It won't happen en masse.

Like you say, it's been implemented for new claimants.

I assume if an existing claimant wants to move, they also will see a reduced rate....therefore they too won't have any choice but to move further out, or stay where they are.

Either way, there will be less money for rent, and landlords will have to find that same rent from someone who can afford to pay it out of their own pocket. It's a lot harder to do that than it is to target someone who has a certain budget attached to their name through HB.

The way the cap of £400 is being introduced seems the best way but if they bring in the £25K in one go I think it will be a right mess, but like you I wouldn’t be surprised if they stall again.

I think prices will probably drop but not to the new LHA levels where I am most reasonable property rents out more that the current LHA rates.

kabayiri

nearlyrich wrote: »

No one should be able to take more in benefits that they could earn however many children they have, no-one gets a pay rise for having a new addition to the family. I think £25k is pretty generous I know families where both parents work full time and bring in less than £25k between them, we can't afford to pay the mortgages of greedy landlords and the sooner this comes in the better.

Even £25K is unsustainable long term in my view. What's that in tax, the total tax take for 3 average income tax payers?

Mid-long term this has to change, or this country will have so much baggage it will really struggle.

There is a double win here. If someone in expensive property currently paid for by the state moves out their cost to the state reduces. The property is the available for someone who has to work in the city, and who welcomes the reduced commute costs.

The change isn't going to be easy, but what's the alternative?

drc

Even the foreign press have picked up on the housing benefit cuts;

London's poor feeling the squeeze - The Washington Post.

drc

kabayiri wrote: »

Even £25K is unsustainable long term in my view. What's that in tax, the total tax take for 3 average income tax payers?

Mid-long term this has to change, or this country will have so much baggage it will really struggle.

There is a double win here. If someone in expensive property currently paid for by the state moves out their cost to the state reduces. The property is the available for someone who has to work in the city, and who welcomes the reduced commute costs.

The change isn't going to be easy, but what's the alternative?

City (finance) jobs are being cut. Since 2007 the city has cut something like 20% of finance jobs and I read recently that is affecting prices in places like Wimbledon, Richmond etc which are coming down or flat lining. If financial jobs are where the big money is and those are being cut, it will be very interesting to see what effect it has on house prices.

property.advert

Whilst it is a disgrace that someone whose earning capacity in work would be minimum wage to live in a property which costs thousands of pounds a week to rent but at the top end, it is also unfair for someone who could afford to pay these thousands of pounds rent when in work and who has lost their job to have to move when the government has befitted from the massive tax collected from them when in work.

Of course, any immigrant trying to rent such an expensive property and have Joe Public pick up the tab should be shown the door toute de suite.

chewmylegoff

drc wrote: »

City (finance) jobs are being cut. Since 2007 the city has cut something like 20% of finance jobs and I read recently that is affecting prices in places like Wimbledon, Richmond etc which are coming down or flat lining. If financial jobs are where the big money is and those are being cut, it will be very interesting to see what effect it has on house prices.

it doesn't seem to be doing that much to house prices in richmond, which appear to be up about 9% this year. thankfully it doesn't seem to be russian and chinese !!!!! buying here at least...

Flight2quality

chewmylegoff wrote: »

it doesn't seem to be doing that much to house prices in richmond, which appear to be up about 9% this year. thankfully it doesn't seem to be russian and chinese !!!!! buying here at least...

The 480 cap hasnt come in yet, just wait.

Derivative

The problem I have is with people claiming that withdrawal of this scheme is somehow reducing social mobility.
I was born and currently live in Hull, and I can buy a 2 bed end terrace for about £40k.
If I want to move within the M25, I'm looking at about £5k pa for a 1 bed flat. 8 years of that could buy me an actual house outright up North.

The London property market collapsing is advantageous for people like me, i.e not on benefits, not wealthy either.

The_White_Horse

480 pw is laughably generous. 480 pw for doing nothing except being a grasping leech? get real. £100 a week is more than enough. enough for a bit of bread and cheese. if they want more, get a job and pay for it. benefits should "just" keep people alive. no more.

Flight2quality

The_White_Horse wrote: »

480 pw is laughably generous. 480 pw for doing nothing except being a grasping leech? get real. £100 a week is more than enough. enough for a bit of bread and cheese. if they want more, get a job and pay for it. benefits should "just" keep people alive. no more.

Don't forget its got to include rent and council tax, its a total cap including everything. After rent and bills and all, those in London with kids will prob only have enough left for a little bit of bread and cheese. Thats when they have been saving. Rice and water the rest of the time.