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

Derivative

Flight2quality wrote: »

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.

Good.
It is a choice to live in London. I don't live there, because I can't afford it currently.

Pack a few suitcases, go on the National Rail website, get on a train that points North.

The rent savings alone will turn that rice and beans into a veritable feast.

ukcarper

hardassets wrote: »

But the house price bulls don't want to see thousands being forced to as you say "get on a train that points North" because rents and house prices will fall a long way in London. When London starts its downward spiral it will bring down the rest of the UK with it.

If your wish comes true and everybody moves out of London won’t that put additional demand on those areas and cause prices to increase.

Flight2quality

Only the low income who rely on LHA to pay rent and council tax will be forced to move away from London.

The UK is a big place, it will not put prices up anywhere. The moment that starts to happen because too much demand and not enough supply these benefit claimers will look for somewhere cheaper. They will all be looking for somewhere with enough bedrooms for around 200 per week rent, so they can keep as much of the rest of the 480 left.

ukcarper

Flight2quality wrote: »

Only the low income who rely on LHA to pay rent and council tax will be forced to move away from London.

The UK is a big place, it will not put prices up anywhere. The moment that starts to happen because too much demand and not enough supply these benefit claimers will look for somewhere cheaper. They will all be looking for somewhere with enough bedrooms for around 200 per week rent, so they can keep as much of the rest of the 480 left.

There are plenty of places not that far from London where a 3 bed house can be had for less than £200 a week do you really think that if people moved out these areas wouldn’t be affected.

robmatic

ukcarper wrote: »

There are plenty of places not that far from London where a 3 bed house can be had for less than £200 a week do you really think that if people moved out these areas wouldn’t be affected.

Precisely. If there is less demand in London as a result of this there will necessarily be greater demand elsewhere.

Derivative

robmatic wrote: »

Precisely. If there is less demand in London as a result of this there will necessarily be greater demand elsewhere.

Yes, but outside the M25 is a lot larger area than within, even if you stick to going outward radially.

Demand outside will rise, but it will be spread out over a far larger area. And keep in mind that London rental prices are probably artificially inflated by HB at the moment - average rental across the UK could well go down or stagnate for a bit as a result of the change.

robmatic

EdgEy wrote: »

Yes, but outside the M25 is a lot larger area than within, even if you stick to going outward radially.

Demand outside will rise, but it will be spread out over a far larger area. And keep in mind that London rental prices are probably artificially inflated by HB at the moment - average rental across the UK could well go down or stagnate for a bit as a result of the change.

That seems fair to me - would be a less distorted and more efficient rental market.

ukcarper

EdgEy wrote: »

Yes, but outside the M25 is a lot larger area than within, even if you stick to going outward radially.

Demand outside will rise, but it will be spread out over a far larger area. And keep in mind that London rental prices are probably artificially inflated by HB at the moment - average rental across the UK could well go down or stagnate for a bit as a result of the change.

If you reduce the amount of housing benefit paid I think it follows that average rents will fall but that will be mainly because rents it London will fall. But how will that help people in the areas outside London where rents will probably increase.

FTBFun

hardassets wrote: »

They can not increase that much outside London because if they go over a certain amount then demand will go elsewhere. That is how free markets work. At the moment there is no free market because in London families get their rent paid no matter how much it is. Bring on the caps, sooner the better I say.

Yep, everyone gets their rent paid by the Government in London!

Why the new login?

wotsthat

FTBFun wrote: »

Yep, everyone gets their rent paid by the Government in London!

Why the new login?

Hardass/ Flight/ Realassets et al obviously doesn't need to worry as his housing benefit is under the £480/ week cap. It won't be long now before a distressed seller comes along willing to swap a house for 5 silver coins.