Housing benefit cuts are on the way

[dogs4life]

Link showing lha rates now and the ones forecast for next year

 

http://www.voa.gov.uk/LHADirect/LHA-emergency-budget-news-2010.htm

[ricgem2002]

(still enjoying my popcorn)

with egg on your face :hihi:http://www.voa.gov.uk/LHADirect/LHA-emergency-budget-news-2010.htm

[chem1st]

For Sheffield:

 

SSR/U25: £65 > £60

1 Bed: £92.05 > £86.30

2 Bed: £113.92 > £103.56

3 Bed: £120.82 > £113.92

4 Bed: £155.34 > £139.81

5 Bed: £212.76 > £139.81

[swampthing]

For Sheffield:

 

SSR/U25: £65 > £60

1 Bed: £92.05 > £86.30

2 Bed: £113.92 > £103.56

3 Bed: £120.82 > £113.92

4 Bed: £155.34 > £139.81

5 Bed: £212.76 > £139.81

 

So from next April someone living in a 1 bedroom house/flat will receive £86.30 per week and someone living in a 2 bedroom house/flat will receive £103.56 per week?

[chem1st]

I think you are finally grasping it - people who work will often rent in the private sector and will pay a higher rent than someone on HB.

 

HB levels of a few:

 

Sheffield 3 Bed: £120.82

1 Bed: £92.05

 

Barnsley 3 Bed: £103.56

1 Bed: £75.48

 

Central London 3 Bed: £700

1 Bed: £350

 

Chesterfield 3 Bed: £120.82

1 Bed: £89.75

 

Leeds 3 Bed: £149.59

1 Bed: £109.32

 

My point is the regional differences and the HB sets the minimum level of rent for those in the private sector in each region.

 

Work full time on minimum wage in the above areas and you will earn the same wage, your rent will be different.

 

In somewhere like central London you might aswell be on the dole to keep a roof over your head, as your rent is far greater than your wage.

 

Why rent a property in your BTL empire to a working man on minimum wage in London, when his non working counterpart has the means to pay the rent, albeit in the form of benefit, the benefit is paid £€$ as opposed to a rent free allocated lot of (high demand) social housing that meets one's needs.

 

The person on HB need not care, whilst the person who is not, is adversely affected by the level of HB which keeps prices artificially high.

 

The potential rental income of the property sets a minimum price for property in the area/region.

 

People may not be able to afford the prices, but those with an entrepreneurial relief of 10% tax on CG of up to £5 Million, and an opportunity to acquire debt to fund the purchase of a property for the purpose of BTL, however, can gain from the system, effectively profiting from the taxpayer funded privatisation of social housing, with the value of each property acquisition dependant on the forecast level of HB payable to private landlords.

 

I for one, think it is a disgrace.

[swampthing]

For Sheffield:

 

SSR/U25: £65 > £60

1 Bed: £92.05 > £86.30

2 Bed: £113.92 > £103.56

3 Bed: £120.82 > £113.92

4 Bed: £155.34 > £139.81

5 Bed: £212.76 > £139.81

 

I misread your post, those are the current rates aren't they?

 

I have just read that the Local Housing Allowance rates are changing in April next year, I thought they weren't coming into effect until October 2011?

[chem1st]

So from next April someone living in a 1 bedroom house/flat will receive £86.30 per week and someone living in a 2 bedroom house/flat will receive £103.56 per week?

 

If the figures linked to earlier are correct then, yes.

 

So if you are for example a landlord of some sort, (council/HA/private), then you should look to be charging £374 minimum for a 1 bed in order to extract the maximum amount of benefit/rent from your tenant.

 

If you rent to a worker whom can only afford £350, or God forbid less, then it is in your interest to put that man out on to the street and make him homeless. Accepting somebody on benefits who will give you a greater rental yield.

 

Once the man you made homeless has lost his job and is having to claim benefits to survive, you can then house him at the higher rate of £374.

[chem1st]

I misread your post, those are the current rates aren't they?

 

I have just read that the Local Housing Allowance rates are changing in April next year, I thought they weren't coming into effect until October 2011?

 

The current rates and > proposed new rates as linked to in a post earlier on.

[swampthing]

Mmmmmmm, I feel sorry for my friend who is on Incapacity Benefit as their rent is something like £495 as i mentioned the other day and at present most of it is paid but it seems they willl receive around £412 per month and have to pay out £83 per month themselves which is quite a lot, I think they are deeply worried about this situation and worrying whether they will still have a roof over their head in the near future.

[chem1st]

Mmmmmmm, I feel sorry for my friend who is on Incapacity Benefit as their rent is something like £495 as i mentioned the other day and at present most of it is paid but it seems they willl receive around £412 per month and have to pay out £83 per month themselves which is quite a lot, I think they are deeply worried about this situation and worrying whether they will still have a roof over their head in the near future.

 

Assuming he is housed by the council/HA he would be able to downsize due to the demand for social housing relatively easily, if in the private sector I suppose he would have to find cheaper/smaller accommodation, which one will presume will be at or above minimum benefit levels.

 

The worst case scenario would be being unemployed, under 25 with the lowest rate of HB and no family support network.

 

Might we see an increase of these people living in student accommodation due to the SSR, and an increase in homelessness, crime and suicide for this group of people, I'd imagine it's a likely scenario

 

One can only hope work prospects increase :/