Low income exodus from London

link

Councils are preparing for a mass exodus of low-income families from the capital because of government benefit cuts, it has been claimed

Representatives of London boroughs told a meeting of MPs last week that councils have already block-booked bed and breakfasts outside the capital.
Other private accommodation - from Hastings, on the south coast, to Reading to the west and Luton to the north - is also being sought for those priced out of London.
According to the Observer newspaper councils in the capital are warning that 82,000 families face losing their homes.

What do people think of this ,i'm not sure about a mass exodus but i do think that it will affect a lot of families

What about Jon Cruddas' claim that it is "deliberate social engineering" designed to remove the poor from rich areas

[squealy]

Link doesn't work.

From the OPs link

Responding to reports of a possible exodus, a Government spokesman said: "There is no evidence of these claims.

"Some private landlords target those on Housing Benefit because they can command higher rents from tenants causing a knock-on effect on rents in the area.
"The current way that it is administered is unfair. It's not right that some families on benefits have been able to live in homes that most working families could not afford.
"However, we are absolutely committed to supporting the most vulnerable families and have tripled our Discretionary Housing Payments to provide a safety net for those who need it."

Originally Posted by squealy

Link doesn't work.

fixed now ,don't know what happened but apologies

---------- Post added at 10:34 ---------- Previous post was at 10:17 ----------

Originally Posted by Hugh

From the OPs link

Indeed ,hopefully the new cap will prevent families on benefits living in million pound mansions paid for by the tax payer ,and stop some landlords having open cheques for their rent

[Gary L]

It might sound bad but the landlords won't drop the rent, and the people who live in these high rent places can't afford to live there anyway.

Originally Posted by Gary L

It might sound bad but the landlords won't drop the rent, and the people who live in these high rent places can't afford to live there anyway.

well there is an argument that a private landlord can charge what they want and that charge will reflect the value of their house .If the private landlords won't drop their rent they will have to target other markets instead of the guaranteed income from benefit claimants

[Gary L]

Agreed. and when you're on benefits living in a property that you could probably not afford to pay the rent as well as everyday living expenses, if you were to get a job. then there's no reason to even get a job.

[nomadking]

Under the LHA system the maximum rates are published and therefore the landlords can set the rent higher up to that level knowing that amount will be paid to the Tenant in Housing Benefit. The LHA rates are set by area and not by quality of premises, so a low quality residence in a central area of a town/city can attract a high Housing Benefit rate. This goes for all sizes of properties(1 bed flat, 3 bed house etc).

[Ignitionnet]

Originally Posted by nomadking

Under the LHA system the maximum rates are published and therefore the landlords can set the rent higher up to that level knowing that amount will be paid to the Tenant in Housing Benefit.

I believe a number of cases have been documented both where this has been done and even where the tenant and landlord split the difference. This both costs taxpayers and artificially inflates rents in areas. Why take a private tenant at a market rent of 300GBP/week when the government will pay twice that?

what about Jon Cruddas' point that it is social engineering designed to get poor people out of affluent areas ,a tad extreme imo but he does have a point ,it will be a side effect deliberate or not

[Kymmy]

I wonder how many houses this will cause to be repossesed by those who bought to let and now find that there isn;t anyone they can let too??

[Gary L]

Originally Posted by martyh

what about Jon Cruddas' point that it is social engineering designed to get poor people out of affluent areas ,a tad extreme imo but he does have a point ,it will be a side effect deliberate or not

It can and will look like that. but that's only because of the circumstances. the end result is that these people are out of work and are living in a property where you'd need a well paid job to be able to afford to rent it out of your own money and not the taxpayers.

and there will never be any incentive for these people to ever want or feel the need to go out and find a job.

some of them may have had good jobs before. but a fair percentage of them probably never. but they just went along with the 'the government will have to support me'

---------- Post added at 11:52 ---------- Previous post was at 11:50 ----------

Originally Posted by Kymmy

I wonder how many houses this will cause to be repossesed by those who bought to let and now find that there isn;t anyone they can let too??

I'd say once the tenant doesn't pay and does move out. they'll either rethink their rents, or leave the property empty.

at the moment they know the rent is being paid, and it's only because they're still getting it that they are ok.

[Jon T]

I just hope all these strategies and new policies work together with each other.

On one hand we are told to either commute further to find employment or move closer to available employment, then in the other hand, depending on how you read it, we get told that those areas may not be available to us for reasons of cost of living.

Edit: I Appreciate that areas with a higher cost of living also mean better paid jobs, but this is a generalisation, workplaces still need cleaners, care takers, canteen staff etc.

Originally Posted by Jon T

I just hope all these strategies and new policies work together with each other.

On one hand we are told to either commute further to find employment or move closer to available employment, then in the other hand, depending on how you read it, we get told that those areas may not be available to us for reasons of cost of living.

good point , what happens when someone follows all gov advice ,gets on a bus ,gets a job ,relocates to the area only to find that they cannot afford rent and the benefit system wont help

[mertle]

housing and land rents in london gone far far out of control its about time theres a cap/freeze.

Dont the NHS have to pay subsidies because they have to have ordinary doctors/nurses live around the real epensive parts to comply with rule of distance from hospital.

It would take a brave government but House prices/land is way over the top to its value in general.

Its grosse what people have to pay because its within the commuting boundies of london. The fact firms and government have to even pay handouts so people live down there too.

I do think we need to try to Drop the house prices and land problem is now you would push millions into negative equity but something goto be done.

Shifting the poor degrading other parts our turning northern towns into crime capitals is the most bizzare and stupid idea any government come up. Then you would hedge that tories would think something crazy of policy of madman hitler with his persecution of jews. Tories just persecuting the POOR/elderly/disabled. When the gas chambers being built when cameron youth/gestapo swastika being errected into british flag.

What next pick town fence it off sling every unemployed/disabled/elderly in it ala district 13/escape from new york films. We need to get this shower out ASAP like the french.

Does this government think not ALL unemployed dont want work THERE simply NO WORK. More getting shoved on it will make the situation WORSE. Yes there few there more rich gets scamming the system than working class. Help investment stop this stupid ideoligy of giving business tax relief to set up in london over setting up in other desperate areas.

I cant believe the nation been suckered while there rich budies continue with there caymen islands furtune.