At least 10% Housing benefit cuts could be on the way

lisyloo

If the new supply is affordable

New build going up e.g.battersea, nine elms is about £400K for a 1 bed flat.
You need a high household income to buy that.

tomtontom

Killerseven wrote: »

Talk is it will, everybody no matter working or not.

But this will really shake things up in London, if it happens.

Lots of families will have to move further out away from London, there will be lots of desperate landlords with empty flats and mortgages mounting up, but they will find it hard to find anybody to rent to, plenty who would like to live there but not many who can afford it without housing benefit ....

Nonsense, there will always be people wanting to rent in London and capable of paying the rent themselves. Look how quickly properties are snapped up, including those that don't accept benefits. I doubt any London landlords will be concerned with the benefits cap, except the cost of evictions.

Killerseven

tomtontom wrote: »

Nonsense, there will always be people wanting to rent in London and capable of paying the rent themselves. Look how quickly properties are snapped up, including those that don't accept benefits. I doubt any London landlords will be concerned with the benefits cap, except the cost of evictions.

So if all the families working and not who rely on housing benefit are forced to move out of London, who will do the min wage and low paid jobs? Can people really travel that far everyday, when they could almost certainly get an easy min wage job close to their new home wherever they end up outside London?

lisyloo

Market forces will sort it out one way of another.
Either the employers will bus people in, put up wages, offer them season tickets or employ immigrants who will sleep 6 to a room.
It's not impossible that we'll see families sharing housing in the future.

But don't forget that as a society we all voted for the Tories and this can hardly be a suprise to anyone.

Killerseven

lisyloo wrote: »

Market forces will sort it out one way of another.
Either the employers will bus people in, put up wages, offer them season tickets or employ immigrants who will sleep 6 to a room.
It's not impossible that we'll see families sharing housing in the future.

But don't forget that as a society we all voted for the Tories and this can hardly be a suprise to anyone.

Market forces will sort it out, the overly high distorted rents and property prices will come down to fir value without the housing benefits.

Lots of landlords must be getting mighty worried about paying their mortgages with average tens falling just as interest rates get ready to go back up to normal.

Killerseven

nannytone wrote: »

as a singleton, perhaps.
but even a couple, with children, both working full time on NMW won't earn enough to support their family without some type of benefit top up.

a joint income of £500 a week will not pay rent ( unless social housing is available) council tax and day to day expenses for a family of 4, even with no childcare costs, in any of the london boroughs

We are only talking about reducing the max £500 week down to £445 week. That is £26k down to new cap of £23k.

So rents will just have to fall around £55 week to absorb the cuts.

But this is just the start, the trend is clear to see, more cuts have to follow and rents and house prices will slowly correct to where they should be.

lisyloo

just as interest rates get ready to go back up to normal

Interest rates are going nowhere for many years.

and rents and house prices will slowly correct to where they should be

Nice thought but in London they'll still be miles off.
Maybe benefits claimants will be driven out but there will still be loads of demand for London whether it's workers, criminals, landlords or investors.
We will still have a housing shortage.
I would love to see prices come down to fairer levels (and I'm a property owner) but I can't see it happening in London until we get a lot more supply (or a lot less demand).

Thrugelmir

lisyloo wrote: »

But don't forget that as a society we all voted for the Tories and this can hardly be a suprise to anyone.

Sometimes decisions made are simply financial common sense. In time their will be many positive benefits.

wotsthat

Killerseven wrote: »

So if all the families working and not who rely on housing benefit are forced to move out of London, who will do the min wage and low paid jobs? Can people really travel that far everyday, when they could almost certainly get an easy min wage job close to their new home wherever they end up outside London?

Clearly there's going to be downwards pressure on rents but it's not obvious that this will automatically lead to lower rents as there will also be an upward pressure on wages.

Maybe employers (or more precisely their customers) have to decide whether they're willing to pay more for whatever service those on housing benefit deliver. I expect, in many cases, the customer will choose not to and maybe you'll have to manage with only 5 coffee shops on every street instead of 6.

The market will decide. I think those hoping for significant falls in rents or prices will be disappointed.

missbiggles1

Killerseven wrote: »

So if all the families working and not who rely on housing benefit are forced to move out of London, who will do the min wage and low paid jobs? Can people really travel that far everyday, when they could almost certainly get an easy min wage job close to their new home wherever they end up outside London?

Hopefully we'll reverse our current social housing policy and start allocating affordable homes in the capital to people who actually work there and contribute to the community.