A little time bomb under UK buy-to-let housing - Maybe

antrobus

mwpt wrote: »

"26% of households in London received housing benefit in 2012"...

DWP says that 32.48% of HB claimants from London were in the private rented sector. (Table 2)

antrobus

Generali wrote: »

...I guess if you are doing BTL in Chelsea or the City you'll have very few HB customers. If you're doing the same in Hastings or Hull you'll likely have a higher proportion.

Let's have a look.:)

Kensington & Chelsea 2,840
City of London 29

Hastings 6,458
Hull 9,575

carslet

What if they do not rent to benefit tenants. the majority dont these days.
so will have no effect on them

IveSeenTheLight

mwpt wrote: »

"26% of households in London received housing benefit in 2012"

It may not be you, but somewhere, BTLers are letting housing to people receiving housing benefit. Supply/Demand equation is changed if you remove money from the demand side.

Can you share your link.

26% of households, does not segregate down to private BTL's.

It's entirely possible the bulk of this would be social / council housing.

theEnd

antrobus wrote: »

Let's have a look.:)

Kensington & Chelsea 2,840
City of London 29

Hastings 6,458
Hull 9,575

I'm surprised there's even that many in Kensington & Chelsea. The City has very little housing anyway, so doesn't really count.

Most of London should be on a par with the rest of the country. Most of it isn't rich.

If you added in SMI and the various HTB schemes, how many properties in the country are subsidised by the govt?

Generali

carslet wrote: »

What if they do not rent to benefit tenants. the majority dont these days.
so will have no effect on them

Only if the market stratifies with people on HB renting dumps and non HB renting palaces. Why would I rent a dump from you if I can rent a dump from someone who targets the HB market?

I suspect that will be the long term effect of this: less housing in the middle. You can have cheap and crap or nice and expensive. The LL that wants to make money from an okayish place might have to up her game.

antrobus

IveSeenTheLight wrote: »

Can you share your link.

26% of households, does not segregate down to private BTL's.

Everything you always wanted to know about HB, but were too afraid to ask.

https://www.gov.uk/government/statistics/number-of-housing-benefit-claimants-and-average-weekly-spare-room-subsidy-amount-withdrawal

Generali

BTW, I think I know 2 of the 29.

antrobus

theEnd wrote: »

...If you added in SMI and the various HTB schemes, how many properties in the country are subsidised by the govt?

SMI caseload was around 220,000 in April 2010.

HTB statistics can be found here;
https://www.gov.uk/government/statistics/help-to-buy-equity-loan-scheme-and-help-to-buy-newbuy-statistics-april-2013-to-december-2014

antrobus

Generali wrote: »

BTW, I think I know 2 of the 29.

It was down to 24 in February 2015.:)