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 7 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



Comments

by Property Saviour

9:20 AM, 27th April 2015, About 7 years ago

Reply to the comment left by "Jay James (see also previous Jay James profile)" at "26/04/2015 - 19:30":

Hi Jay

Yes spot on!

by Mick Roberts

8:07 AM, 28th April 2015, About 7 years ago

For those living in London, downsizing from a 1 bed flat would be pretty hard.

Lavish lifestyle? Aah right, not having enough money for food lavish?

But what these cuts are doing is leaving NO money available for any accommodation.

In Nottingham, I have a few families with 4 kids, if Tories get their way, this will leave maybe £10 to pay for rent-Where they gonna’ live?

Welfare should be there as a back up, I see how these people live every day, they ain’t loaded, yes some may have fags & booze, but they do miss out on other stuff.

by Si G

8:42 AM, 28th April 2015, About 7 years ago

Reply to the comment left by "Mick Roberts" at "28/04/2015 - 08:07":

Then move out of London like we did. If you want four kids that's a lifestyle choice. I hope the next government builds some council houses and looks at proper cuts to benefits such as free cars/free prescriptions, absurd waste of public money people in this country need to get real, the free lunch is over.

by Alan Loughlin

10:03 AM, 28th April 2015, About 7 years ago

Reply to the comment left by "Simon " at "28/04/2015 - 08:42":

well said Simon

by Kulasmiley

11:19 AM, 28th April 2015, About 7 years ago

Listen guys mick has a point, so do you. We as landlords can reduce our rent if we are able to but insurance for hb tenants is way too much. I can't afford to live in London and I have 20 rentals so why should they? We work hard to help our families so we deserve what we get in terms of not going hungry. We do need the Conservatives to keep doing what they do, but sanctioning is killing our own hb payments.

by Neil Robb

13:40 PM, 28th April 2015, About 7 years ago

Hi AA Properties Wales

Most landlords charge very reasonable rents as it is and in some case's take a hit on certain properties. I have one property where the tenants demanded something they were not entitled to when I explained that I make little or no money from her property. She barked at me that was my stupid fault for paying to much for it. Yet they have lived there over four years and not one rent increase. She moved to my property when her old rent was being put up so she was saving over £70.00 Per month. when I lost my job I did not go round putting up my rent.

Outside London most rents are around £400 to £500 a month. Which is exceptional value. If you buy a decent property that some people can not afford to buy and you rent that property to them for a small amount of rent. Most people who have mortgages pay more each month for there houses. So how can the government expect landlords to reduce rents. When they keep piling on costs Pat testing, Gas Certs ,Landlord registration to name but a few of the new addition costs.

A landlord has to pay for his insurance, rates (council Tax), Tax, Repairs and voids
Court cost legal fees.

The government know it cost more to provide houses at these rents and that's why they don't do it. Most new Housing Associations rents are as high if not higher than private landlords.

by Jay James

13:52 PM, 28th April 2015, About 7 years ago

If only the truths in the preceding comment were known to the electorate.
Both main parties would then be lynched for what they are doing to / plan for the private rent sector and so the tenants that need the PRS.

by Kulasmiley

15:18 PM, 28th April 2015, About 7 years ago

I hear you guys. I'm going to a Hustings Event tonight with the Rla and I'm going ask main political parties ask why tenants are not criminalised when they do not hand over the rent, smells of fraud by misrepresentation if their pre-tenancy forms are not true to its word. What do u think guys, we have to fight hard in this battle! Kevin

by Mick Roberts

7:42 AM, 29th April 2015, About 7 years ago

My tenants don’t live in London, where they gonna’ go?

Everyone is different, they’ve already got the kids, what do we do now, Gov’t are changing the rules AFTER the event?

by Kulasmiley

7:57 AM, 29th April 2015, About 7 years ago

Mick, even though my business is mostly hb tenants I think the Gov't are right in what they're doing. I grew up in poverty, I make no excuses for my background, I work damn hard and lobby the political parties hard to understand that Landlords are hardworking members of our society. We should not make excuses for tenants that adopt an attitude of always taking, never giving back. I would make my tenants do work to pay for their rent, just as WE DO. The vulnerable - well my business is vulnerable EVERY DAY to the sanctions, to the tenants not paying the rent. Let's get this country to be NO1 in aspiration, in hard work, in reward!

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