Going up

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  • #38917
    RobBox
    Participant
    #110294
    Lee Fearon
    Participant

    I’m afraid the BBC has got this completely wrong.

    The exclusive reason for the increase in levels of prvate sectore rents is uncapped LHA. That’s why, contrary to the the research reported by the BBC, the introduction of LHA caps from April 2011 has actuallydriven rent levels down.

    I’m absolutely sure that this is correct because both Shapps and IDS insisted that capping LHA would reduce rents and I’m certain their views were founded on thorough research and not based on a soundites of Daly Mail readers which were trotted out and often repeated in order to justify cuts to entitlement on the basis that HB recpients were workshy fops, living palacial mansions at the expense of the tax payer.

    Shame on the BBC for reporting this rubbish.

    #110295
    nickkeogh
    Participant

    Seems a lot of things that Shapps/IDS and Osborne said would happen haven’t quite worked out as planned. All depends on which particular think-tank they choose to listen to really. And normally it’s the one that tells them what they want to hear.

    #110298
    Lee Fearon
    Participant

    Nick

    With reference to whom the Govermment is listening to, use of the word “think” in “think-tank”, is overstating the issue.

    #110311
    Alex G
    Participant

    From July 2011

    (I wish I could do that quote thingy, that we used to be able to do on the previous board!)

    “Rents in Scotland at highest level for three years
    The growing market has been attributed to a lack of mortgages available to first-time buyers.

    21 July 2011 15:17 BST

    Rents in Scotland are at the highest level for three years due to a lack of available mortgages, a report has revealed.

    Flats in Aberdeen are the most expensive to rent in Scotland with the average one-bedroom property in the city costing £556 a month, up by 2.4% from last year.

    Prices have risen the most in Edinburgh, where a 3.3% rise has seen one-bedroom flats costing £537 a month. The average rent across the country is £663 a month.

    A report by letting website Citylets shows that the rental market in Scotland is growing despite the recession. An expert at the company said this is because people cannot get mortgages and are instead renting long-term.

    Glasgow has traditionally lagged behind the rest of the country but is catching up with Edinburgh and Aberdeen. The average rent for a three bedroom property in the city has risen by 3.3% to £844 per month.

    Dan Cookson said: “The rental market in Scotland is still performing well, with rents rising steadily in every city and properties being let more quickly than they were earlier in the year. It’s clear that the demand for rented accommodation across the country is showing no signs of slowing down any time soon.

    “There also appears to have been a marked switch in attitude when it comes to property in Scotland. Many would-be homebuyers are being thwarted from purchasing a property of their own due to tight mortgage restrictions and the need to save up a big deposit, so they are shunning the residential sales market altogether in favour of renting a home instead.”

    #110330
    John Boxall
    Participant

    Wait for the bill for the resultant homelessness to come in………

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #110331
    liffe
    Participant

    The rental market is totally unregulated and driven exclusively by estate agents so a government policy designed to reduce the amount paid to HB recipients will never have the effect of pushing down rents overall and thereby delivring savings to the taxpayer.

    With unregulated rents or rents which are regulated voluntarily by estate agents, is it not obvious that the LHA figure will be pushed up based upon the rather shrewd rent setting by the agents?

    Sometimes I wonder… :~

    #110348
    Julian Hobson
    Participant

    and hence the decision to cap LHA increases to the march 2013 rate +CPI. It’s as if they knew that rents would increase even with capping and assessing LHA at the 30th percentile.

    #110329
    Anonymous
    Guest

    The significance of this is that it is non-LHA rents which are used to set LHA levels.If that rental market is buoyant then there will be no reason for landords to reduce rents.If anything they will push rents up (supply and demand principles).In turn this will push up the 30th percentile figure for LHA purposes meaning that the HB/LHA savings that Mr Osborne is counting on won’t be realised in their entirety.Another round of budget cuts next year, bringing the percentile down to the 20th?

    #110349
    Lee Fearon
    Participant

    [quote=Julian Hobson]and hence the decision to cap LHA increases to the march 2013 rate +CPI. It’s as if they knew that rents would increase even with capping and assessing LHA at the 30th percentile.[/quote]

    Yes, and given that CPI doesn’t include housing costs, within a few years they’ll be no tangible link between maximum available HB and the levels of rent charged

    Not too difficult to see where this is heading. I’d have thought it would be tantamount to political suicide. Not much of a plan, is it?

    #110350
    RobBox
    Participant

    Baldrick strikes again – he does get around these days 🙂

    #110351
    John Boxall
    Participant

    This sums it up rather neatly

    http://speye.wordpress.com/2011/08/31/housing-benefit-and-the-hypocrisy-of-shapps/

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #110551
    Clive_Buckman
    Participant

    [quote=Lee Fearon Yes, and given that CPI doesn’t include housing costs, within a few years they’ll be no tangible link between maximum available HB and the levels of rent charged

    Not too difficult to see where this is heading. I’d have thought it would be tantamount to political suicide. [/quote]

    Some cynics might suggest that homeless people might find it more difficult to register to vote than those who are fortunate enough to be more affluent. Some such folk may also believe that this government might perceive their own electoral position would gain from such a disadvantage. All subscribers to this site however know that such a perceived advantage, assuming it exists, is purly co-incidental.

    #110784
    RobBox
    Participant

    Higher and higher they go……..

    http://www.bbc.co.uk/news/business-14934316 🙁

    #110785
    Anonymous
    Guest

    With limited supply, partially engineered by coalition cuts to social housing building projects, depressed demand for home ownership due to the difficulty of obtaining a mortgage, leading to greater demand for rented properties, it should not take a genius to work out that rents will soar.

    As others have mentioned the higher these rents go, the higher the 30 percentile will be.

    Another long term issue that will affect this is that when people leave university in the future they will not be able to get on the property ladder as they will be paying off debts rather than attempting to save for a deposit. Again pushing up demand when the supply is so limited. I read somewhere that we built the lowest number of homes in the UK last year since the 1920’s

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