2010 Budget changes- capping HB/LHA

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    2010 Budget changes- capping HB/LHA

    How will this work then? Just read that:

    Mr Osborne added that he would wipe £1.8 billion a year off the housing benefit bill by the end of the Parliament, capping weekly payments at £400.

    Any ideas?
    Unshackled by the chains of idle vanity, A modest manatee, that's me

    #2
    Originally posted by islandgirl View Post
    How will this work then? Just read that:

    Mr Osborne added that he would wipe £1.8 billion a year off the housing benefit bill by the end of the Parliament, capping weekly payments at £400.

    Any ideas?
    Well, I suppose families on LHA living in large homes costing more than £400 in rent per week will either have to contribute more themselves, move out into somewhere cheaper, share with another family or persuade the LL to reduce the rent.
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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      #3
      Thanks MTG - agree that may be possible where I live (though average semi rents at over £600/month) but what about London and the South? I think this is another unworkable presentation by "Camerons Cuts Ltd"
      Unshackled by the chains of idle vanity, A modest manatee, that's me

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        #4
        Originally posted by islandgirl View Post
        Thanks MTG - agree that may be possible where I live (though average semi rents at over £600/month) but what about London and the South? I think this is another unworkable presentation by "Camerons Cuts Ltd"
        Maybe; but this concern took over the business from NewLabour (Incompetent Finance) Unlimited- so blame the previous management.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

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          #5
          Originally posted by jeffrey View Post
          Maybe; but this concern took over the business from NewLabour (Incompetent Finance) Unlimited- so blame the previous management.
          Two wrongs don't make a right.

          And what use is blame anyway?
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


            #6
            Originally posted by mind the gap View Post
            Two wrongs don't make a right.
            Although two Wongs can make a little Wong, as long as he's a boy.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Originally posted by islandgirl View Post
              Thanks MTG - agree that may be possible where I live (though average semi rents at over £600/month) but what about London and the South? I think this is another unworkable presentation by "Camerons Cuts Ltd"
              I don't know. How much does the average 3/4 bedroomed semi cost to rent in London? Is all of the South expensive, or is there quite a range of rents?

              If not, they could all move up north and repopulate Scotland
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

              Comment


                #8
                Well i guess it will mean that in the wealthy Tory London boroughs like Westminster and K&C, the LHA tenants will be forced out to the cheaper outer London areas as lanlords will not accept the massively lower LHA rates going forward.

                Whatever you think of the high LHA rates, the cost of buying properties in Central London meant that the yields were / are not as high as you might think.

                I'm sure the rich residents of Kensington are breathing a sigh of relief that soon they will have a few less poor people to look at.

                Comment


                  #9
                  Originally posted by mind the gap View Post
                  Is all of the South expensive, or is there quite a range of rents?
                  Here, in Stevenage, which is 30 miles from London and a lot of people commute, the rent for a 3 bed house ranges from £700 pcm to £1100 pcm.

                  Comment


                    #10
                    In the case of LHA tenants who are not working at all, why do they need to be in Central London anyway? It sounds like a nightmare kind of place to live unless you are mega-rich.
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                      #11
                      Originally posted by mind the gap View Post
                      In the case of LHA tenants who are not working at all, why do they need to be in Central London anyway? It sounds like a nightmare kind of place to live unless you are mega-rich.
                      Some non-Central London examples of LHA entitlement [and rent] of more than £250 per week...

                      Using the LHA bedroom calculator, a 6 person household: 1 mum + 1 girl (10-15 years) + 2 boys & 2 girls (under 10 years) are entitled to a 4 bed house.

                      Using the LHA Rate Search:
                      For a 4 Bed house in:
                      Barking and Dagenham: £299.18/week* [Av. Rent (Rightmove): approx. £250-£400+/week.]
                      Barnet: £333.70 - £575.00/week (covers 3 areas)*
                      Basingstoke and Deane: £264.66 - £299.18/week (covers 4 areas)*
                      ...
                      Watford: £391.23/week* [Av. Rent (Rightmove): approx. £275-£750+/week.]


                      * LHA Rates valid to: 30 Jun 2010.
                      The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

                      Comment


                        #12
                        Yes i agree - let's put all the poor people in a ghetto...

                        Seriously though, all areas of Central London have council blocks - It's part of what makes London such a great, mixed city.

                        The point is that there are not enough places for council tenants full stop. The idea that they will simply build more houses in these areas for council tenants is simply unworkable.

                        Add to this the population explosion, and immigration and you have the situation we are in today, with private landlords taking the slack and the risk.

                        The end result? Landlords will exit the market, and the tenants will be forced back on to a never ending waiting list / temporary accommodation etc.

                        LHA needs to be reformed, as does the whole benefits culture, but lowering the rates for a good headline doesn't help the actual people that need it the most.

                        Comment


                          #13
                          Budget small print....

                          And (from page 55 of http://www.hm-treasu...et_complete.pdf):

                          From October 2011, Local Housing Allowance rates will be set at the 30th percentile of local rents.

                          LHA will also be cut by a further 10% for JSA claimants after a year.

                          The party appears to be well and truly over for landlords...

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                            #14
                            Originally posted by RodCrosby View Post
                            LHA will also be cut by a further 10% for JSA claimants after a year.

                            The party appears to be well and truly over for landlords...

                            Rents are higher than ever as are working people who can ONLY afford to rent. Lifes never looked rosier for LL's in my eyes.

                            These cuts will only effect Slum Lords and Career Scroungers.

                            Comment


                              #15
                              Originally posted by RodCrosby View Post

                              The party appears to be well and truly over for landlords...
                              .....if they let to LHA Tenants maybe !

                              With things tightening up even more and lending being "difficult" I look forward to much longer term tenants
                              A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                              W.Churchill

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