Lowered Benefit cap could affect landlords from 8th May?

Lowered Benefit cap could affect landlords from 8th May?

11:04 AM, 13th April 2015, About 8 years ago 159

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If nothing is changed post election on the 8th of May the Benefit cap will be reduced from £500 to £440 pw in London with a lower cap in other regions of £396, 90% of the London figure.

As an example: A two parent household with three children receive £334 per week and then deduct the welfare benefit and child tax credit income to leave a maximum residual HB or LHA payable.  From the new cap figures this leaves a maximum of £62 per week in housing benefit outside the capital and £106 per week in London.

The question is will landlords risk renting their investments to benefit families who will only receive £275 per calendar month in HB or LHA towards the rent on a three-bed property? Or to a single parent with three children who will only receive £456 per month in HB to pay for a three-bed property in an area such as Liverpool with a typical three-bed private rent of £525 per month?

The last two years has seen some social landlords refuse to tenant a property with those under occupying due to the bedroom tax. Now landlords could face a greater financial risk, even on fully occupied properties, and so some may be forced to stop providing property to such households. Thus creating even greater pressure on council supplied social housing.

Mick Robertsbenefit cap

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12:15 PM, 20th May 2015, About 8 years ago

I blame all this on the laissez fair attitude which developed in the 60's as a rebellion against the strict rules after the war. The 80's saw an explosion in this attitude coupled with a selfishness. We are now changing our behaviour, but it takes a long time for society to catch up.

I am a 70's kid and growing up in these times the laissez fair attitude was starting to go IKEA (on mass). So we had divorce rate rocketing and drug use the norm. This has continued into the 90 and noughties. However, in the last 10 years society has clocked this is not the way to run, it can see the mess left behind by this relaxed attitude to living.

A minority of people can be responsible, work, drink and take drugs, but giving these choices to the masses has resulted in societal disfunction.

We are changing slowly, but again it is not a quick process.

Community and working together and personal responsibility are the key issues in the future. It seems these links are much stronger in Europe, but in the UK we follow the American model of doing stuff.

Keep Britain Tidy! Where did this go? We all learnt to use bins when we were toddlers in the 70's, so why was it stopped. This national brain washing was very useful and should have been kept. The government must work to create stronger societal links. Germany has this thinking, so why can't we ?

I would love to here what it is like renting to the lower classes in Germany. I bet they all recycle and take their rubbish out on time over there.

Alan Loughlin

12:25 PM, 20th May 2015, About 8 years ago

A too liberal an attitude which just gets abused. Hence the drop in lib Dems support at the polls I think.

Sunny Rsa

22:46 PM, 8th June 2015, About 8 years ago

I wouldn't worry about Housing Benefit payments. I wouldn't touch DSS tenants with a barge pole. I was mistaken to believe there are some nice people out there who just happen to be desperate for somewhere to live because of changes of circumstances they could't have helped and had their home repossessed etc. These are exceptional few good people who will look after your house like their own home. The majority of DSS tenants out there have already stung one or more landlords and they are aiming your property because you are exactly the type of landlord that they came out for. Unless you know how to handle difficult tenants, you have good grasp of Housing law, and you have a very acute business acumen, and your property is flawless, don't risk it with DSS tenants. These people are scumbags who never had to worry about their daily bread and butter, and because they never owned a home, they don't know what it's like to save your pennies for a rainy day. The choice is yours. If your property is in good condition and you are able to let it out through a reputable agent, you will never have to deal with your tenant's nonsense, you will never have to serve a Section 8 notice, and your bank manager will smile at you.

Alan Loughlin

22:52 PM, 8th June 2015, About 8 years ago

sadly I find myself in agreement with Sunny, what has this all come to, all through biased, flawed law.

Alan Loughlin

22:53 PM, 8th June 2015, About 8 years ago

every ad now contains NO HB.

Sunny Rsa

22:59 PM, 8th June 2015, About 8 years ago

Reply to the comment left by "Alan Loughlin" at "08/06/2015 - 22:52":

Thank you Alan for agreeing with me. Unfortunately, there are a lot of inexperienced landlord out there who have yet to taste the bitterness that comes from the sweet words of HB tenants.

Alan Loughlin

23:06 PM, 8th June 2015, About 8 years ago

until there is equality in law between tenant and landlord more and more PL's will do the same, the end result will be obvious.
In the media we constantly hear about rogue landlords, and never anything about rogue tenants, while I am sure rogue landlords do exist, they are in the minority, but to never mention any rogue tenant is just bad reporting.


23:16 PM, 8th June 2015, About 8 years ago

I am thiiking very seriously about not renting to hb tenants anymore
I would rather sell and break even
than go through the hbbprocess which only brings problem after problem.

Alan Loughlin

23:22 PM, 8th June 2015, About 8 years ago

we are seen as the rogues when in fact we are the saviours, it is largely due to a campaign aimed at doing this by Shelter and their ilk, they are too stupid to realize that we are mostly good guys, and should diferentiate us from the few bad ones.

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