Comments on: New LHA Rates Have Huge Implications for All Landlords

By: Helen Bradford

Helen Bradford — Tue, 01 Mar 2011 12:19:25 +0000

THis blog is full of high rated areas in London but I work with the homeless or people facing homelessness in Mid Wales. THe current LHA rate for a one bed self contained is £94.62 working on the 30% percentile calculation the March amount is £85 leaving an amount of £9.62 to be found in top up. Many one beds are being charged at £100 per week and the clients are already having to find some top up , plus they are paying back to a Crisis Loan for a rent advance. In some cases this could mean £23 per week being taken from their benefit (JSA £65.40 currently) before water rates , electricity or food. So many of my clients are going to be facing gruelling deductions from their benefits but where are they going to go to find cheaper accommodation – nowhere! Once again the government are not thinking at all about the rural areas nor the knock on effect to our local economy

By: Graham E

Graham E — Tue, 03 Aug 2010 10:51:33 +0000

I have two rented flats in Hastings,both tenants on LHA.The 12 month rental review reduced both rents from £500 four weekly to £460,£40 per period down??? 8% is a big hit and the tenants say they can’t/won’t make up the difference. How can they do this? anybody know? Regards Graham

By: David

David — Wed, 07 Jul 2010 20:44:52 +0000

Excellent point Anna K – we can’t have poor people in good postcodes. Where should these LHA claimints in Central London go to however? Obviously out of London. Perhaps they could be shipped in trains out to Wales or somewhere.

By: Anna K

Anna K — Wed, 07 Jul 2010 10:07:31 +0000

There is no reason why LHA claimaints in central London boroughs need to be housed in those boroughs with expensive rents subsidised by the taxpayer. Since they don’t work, they have no necessity of being near to work and should be moved out of London. If they complain – tough. You want to live in Westminster, then get a good job just like working taxpayers have to do if they want something they can’t afford. Don’t expect the taxpayer to subsidise your children and your lifestyle.

By: ebenzer howard

ebenzer howard — Sun, 04 Jul 2010 15:41:20 +0000

Less Planners lower density please: CV and RV are high due to inelastic supply. We need to help under occupied and lifestyle subsidised move and the less able stay, to move not to the burbs but other areas of inner London. Private rented supply increases becomes more affordable, rental tax can fund police and services to help in inner London. Then we set lower densities for development and start tearing up some fields and giving incentives, even bribes for companies to stop building in the city and locating elsewhere.

Re bankers and sell offs, the reason council houses were sold off was not simply a transfer of voting allegiance (Thatcher your own house vote Tory, Brown we’ll give you a tax payer funded job) but to pay off the huge loans for experimental concrete buildings that fell over or don’t fit the British way of life.

By: Simon

Simon — Sat, 03 Jul 2010 21:41:30 +0000

Overall rents will fall and even-out as there is less money to go around.

By: steve

steve — Sat, 03 Jul 2010 18:01:50 +0000

A few months ago I read in the paper that a foreign Somalian woman with children and no partner has been getting Housing benefit paid at £12,000 per month. It beggars belief. The rate should be capped. I have no sympathy for these scroungers. £400 per week is more than fair.

By: proprateanalyst

proprateanalyst — Fri, 02 Jul 2010 17:36:55 +0000

Really insightful and totally agree. As a landlord in Southwark, I am quite optimistic about the prospects. Tempted to buy in Deptford

By: Jo T

Jo T — Fri, 02 Jul 2010 12:46:16 +0000

Read up Osborne is hitting 600,000 poor homes in The Times online.
He wants to reduce LHA for private properties to the same level as council rates which will finish the buy to let and HMO market with rent reductions of 40%.

It claims landlords could lose anywhere between over £1000 – £3000 in rent a year in Ashford,Bath,Bedford,Brighton,Canterbury,Cambridge,Cheshire,Chichester,Exeter,Leeds,Manchester,York,London where there are high numbers of lets. The more bedrooms the bigger the loss.

By: RichB

RichB — Fri, 02 Jul 2010 10:04:47 +0000

It’s hard to see how rents could rise in less-expensive, further-distant boroughs if LHA benchmark rates are moved down from the median (50% percentile) rent to the 30% percentile rent, which will happen more or less at the same time as the caps are introduced in high cost boroughs. As almost 40% of tenants in privately rented accommodation in Greater London are on housing benefit, this is going to have a huge impact on almost every landlord in London (and will be a huge benefit for anyone struggling to pay their own rent). This reform is long overdue.