Which Businesses should be worried about the savage Benefit cuts?

[HeadingNorth]

But if people are getting less housing benefit then they are going to have to make up the difference and then they have less disposable income which they can spend in shops.

 

 

You're assuming that rent amounts will stay the same; and given that large numbers of people will no longer be able to afford them, that clearly cannot happen. Landlords would rather earn less money from someone staying in the building, than no money because they can't afford it any more.

[Titanic99]

Housing benefit isn't spent in shops so that won't make any difference.

 

 

But unless Landlords reduce Rent levels surely the deficit has to made up by the tenant:huh:

[HeadingNorth]

The linked shows the initial 11 Billion, plus the other 7 Billion announced yesterday.

 

But it does not answer my question. I've yet to see anything that actually says "this benefit is being reduced by this number of pounds per week."

[Titanic99]

You're assuming that rent amounts will stay the same; and given that large numbers of people will no longer be able to afford them, that clearly cannot happen. Landlords would rather earn less money from someone staying in the building, than no money because they can't afford it any more.

 

If this happend (big if), then the original question still stands but changes to the areas that will suffer if the landlord has less money.

 

Either way there's a lot of money being taken out of some businesses.

[chem1st]

The cuts won't have much of an impact.

 

When interest rates rise, that's when we need to worry.

[melthebell]

You're assuming that rent amounts will stay the same; and given that large numbers of people will no longer be able to afford them, that clearly cannot happen. Landlords would rather earn less money from someone staying in the building, than no money because they can't afford it any more.

really? i dont think it works like that, ive yet to see a landlord lower a rent just to keep somebody in it

[discodown]

You're assuming that rent amounts will stay the same; and given that large numbers of people will no longer be able to afford them, that clearly cannot happen. Landlords would rather earn less money from someone staying in the building, than no money because they can't afford it any more.

Which they will in the short term. Landlords are not going to reduce their rents on the day the cuts kick in

[Wildcat]

The impacts reported here are largely with construction, IT, recruitment, advertising and business services.

 

http://www.iii.co.uk/articles/articledisplay.jsp?section=Markets&article_id=10120252

[I1L2T3]

You're assuming that rent amounts will stay the same; and given that large numbers of people will no longer be able to afford them, that clearly cannot happen. Landlords would rather earn less money from someone staying in the building, than no money because they can't afford it any more.

 

So you would see buy to let home owners (effectively small businesses) as possible losers from this?

[chem1st]

Which they will in the short term. Landlords are not going to reduce their rents on the day the cuts kick in

 

We have yet to see the law of unintended consequence.

 

In Sheffield we have a real lack of housing. Having suffered from emigration for over a decade we began to demolish social housing. Vast amounts have been sold off.

 

The 'sale' of Parkhill for £0 and for which we have spent £30m to help refurbish reduced our social housing stock by ~2% in an instant.

 

A further 10%+ has been sold off in a decade via RTB/demolished.

 

We need to know how many under 35 year olds aspire to a rented 1 bed flat. We need to know how many of them will drop aspirations and move into a shared house.

How many will have a child to up their housing 'points'.

 

Most people will aim to have a property before a child, but now many who plan to do that might have the child first, those planning on having children in a few years, are likely to bring it forward.

 

Sheffield's population is increasing far faster than housebuilding.

 

The Victorian tenement as a common form of housing is a real possibility.

 

I can also see people opting to stick two fingers up at planning law and build small slums in the peak district near to the train stations.

 

If I was a landlord I would be converting my property into a HMO, I would be actively targeting unemployed under 35s as the Shared Room rate between a few of them will yield a better return than the market rent workers are paying.

 

I'm actually considering to do so, jut to prove a point that the system has flaws. It's like a license to print money of he backs of unemployed or low income workers.