What changes will universal credit bring this October?

E.L.James

Generali wrote: »

Still think it'll be millions? I smell back sliding.

Millions affected yes I still think so. I am not backsliding at all.

I would guess before October there will be some more changes announced or it will be postponed yet again. But if it is not postponed and there are no more changes, then millions will be affected and find they have less disposable income.

Generali

E.L.James wrote: »

Millions affected yes I still think so. I am not backsliding at all.

I would guess before October there will be some more changes announced or it will be postponed yet again. But if it is not postponed and there are no more changes, then millions will be affected and find they have less disposable income.

Time will tell.

E.L.James

Generali wrote: »

Time will tell.

Time is telling, the less funds available the more downward pressure on housing costs.

When incomes go up and credit is easy it puts upwards pressure on housing costs as has been seen for the last more than a decade.

For the next decade on there is going to be a squeeze on benefits and lending is also getting tighter. This will have a knock on effect on the wider economy as people have less funds to spend all businesses suffer. This will put even more downwards pressure on property.

This is all before interest rates correct back to long term normality.

Generali

E.L.James wrote: »

Time is telling, the less funds available the more downward pressure on housing costs.

When incomes go up and credit is easy it puts upwards pressure on housing costs as has been seen for the last more than a decade.

For the next decade on there is going to be a squeeze on benefits and lending is also getting tighter. This will have a knock on effect on the wider economy as people have less funds to spend all businesses suffer. This will put even more downwards pressure on property.

This is all before interest rates correct back to long term normality.

People on benefits don't buy houses on credit so I'm not sure why a cut in benefits would put pressure on house prices if easy credit is the reason for rising house prices.

grizzly1911

Generali wrote: »

People on benefits don't buy houses on credit so I'm not sure why a cut in benefits would put pressure on house prices if easy credit is the reason for rising house prices.

Presumably thinking - less benefits, less to spend on rental for private rental, depressing the price that landlords can pay to enter the market or potentially withdraw from the market flooding supply with cheap property.

I am not so sure they will be able to hold let alone reduce HB, without radically changing policy and quality of provison, as demand will continue to grow and there is no real solution in site.

Generali

grizzly1911 wrote: »

Presumably thinking - less benefits, less to spend on rental for private rental, depressing the price that landlords can pay to enter the market or potentially withdraw from the market flooding supply with cheap property.

I am not so sure they will be able to hold let alone reduce HB, without radically changing policy and quality of provison, as demand will continue to grow and there is no real solution in site.

Spot on.

In addition, BTLers have shown over the past decade that they will accept terrible yields. In the years before interest rates collapsed, I was paying between 2 & 3% of the value of the house in rent. My landlords subsidised my living standards to a huge extent for which I am very grateful.

chucknorris

Generali wrote: »

Spot on.

In addition, BTLers have shown over the past decade that they will accept terrible yields. In the years before interest rates collapsed, I was paying between 2 & 3% of the value of the house in rent. My landlords subsidised my living standards to a huge extent for which I am very grateful.

I certainly wouldn't go that low on the yield, so you have definitely had a great deal, but I can understand why some might under certain circumstances. Whilst the renter in the short term definitely gains (no argument there) the landlord does of course have an investment where the yield will grow in the long run. But as I said I certainly wouldn't go that low, unless there was another factor e.g. buying a property with a regulated tenant for example, with a much larger capital growth at some point in the future. But at my age I might not actually live long enough to realise that gain!.