£95,000-a-year benefits family of 12 re-homed in a £1,000-a-week house
05/09/2010 5:26 pm
DM uncovers another corker:
Surely it's about time child benefit was capped? How long is the taxpayer willing to provide perverse incentives for the feckless to breed and then demand ever larger houses at their expense?
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08/09/2010 10:07 am
'Can't be as bad as the banker earning over £250,000 per week'
As he does not work for the government and his bank had no bail out cash from us he can earn a million a week if he wants...
And what happens when his bank defaults for conning customers of making ill-advised banking mess and the taxayer has to rescue his bank?
Will he offer back 90% of alll his salary since the rot started?
Like hell he will.
Will you be able to force him to pay back 90% of alll his salary since the rot started?
Fat lot you can do.
He is laughing and you as taxapayer are paying and go on paying his huge salary.
08/09/2010 10:18 am
'So the TORIES have made changes to allow PSLs to ride roughshod over the TORIES proposals to cut HB which will of course INCREASE the HB/LHA bill and paid for by the public purse.'
Only if every PSL converts every property to a HMO on your figures...and HMO's are capped at the shared room rate anyway...so the LHA bill won't increase anyway...
08/09/2010 10:20 am
Kass, I assume you talking about the Barclays banker?
They survived the worse banking crisis in living memory with no government handouts...maybe they have something to teach the other banks that took handouts about best practice.
08/09/2010 11:25 am
So a PSL in any part of the country has the choice - Do I keep this 4 bed property and receive £600 pcm in LHA - Or do i convert it to 4 x 1 bed flats and receive £1300 pcm? Wow that really is a hrad business decision isnt it!!!!!
Of course PSLs will rush to convert as many of their properties as they can and do so in all areas of the country. HB bill will go through the roof.
PSLs will increase the numbers of properties available and buy more through BTL to target the 1.8m on waiting lists.
We have already had forecast that PSL stock will overtake RSL stock in next couple of years and this decision will acelerate that process. The current 60% average premium paid to them through LHA/HB will pale into insignificance shortly.
This decision will cost the public purse hugely as it is a licence for PSLs to print and take public money and with all the manifestations of that - more insecure and more indecent homes and more inaffordability as well as huge increases to the public purse
Still think this wont increase the HB bill?
08/09/2010 11:33 am
Or in London figures if it helps go from £1733pcm (£400pw) to £4333 pcm (4 lots of £250 pw)
That make it clearer for you Melvin - or you think PSLs wont look at these figures and drool at the money they will make??
You dont think the £31k EXTRA income per year will persuade them?
Even converting a 4 bed to 3 x 1 bed units will see the £1733 increase to £3250 pcm.
How about a 6-bed going from £1733 pcm in London to £6500 pcm - You think the ADDED £78,000 per year this decision allows and PROMOTES will persuade PSLs?
08/09/2010 11:38 am
'Of course PSLs will rush to convert as many of their properties as they can and do so in all areas of the country. HB bill will go through the roof.'
You'll find that the majority of HMOs in most urban areas are actually occupied by students (who are mainly not eligable for HB).
I'm convinced that PSLs will not 'rush to convert '. We'll have to see who is right on that front from next April as my crystal ball is faulty at the moment.
'Still think this wont increase the HB bill?'
Yep. Especially as the capping, removal of the £15 top up etc are only the initial actions being taken to lower the LHA burden. I know other options to further lower the bill are actively being investigated.
08/09/2010 12:00 pm
http://www.islingtontribune.com/letters/2010/sep/forum-tea-miliband-who-was-inspiration-socialists is another interesting read.
So is ILAG claiming now to be James Bainbridge, or MG McElligott – still sounds like Owen, who coincidently is also a co-founder of the pressure cabal and holds the same toxic views we see posted by ILAG.
The letter we were directed to still contains no factual basis for the claims made against tenants as a sub-division of society - but then as they aren't how could it.
ILAG - there is a very real community, alive and well, just because you choose to live outside of it does not make it cease to exist.
08/09/2010 12:07 pm
Just watch the BBC's buy an ex-council house on the cheap, tart it up and make a huge load of dosh programmes and you will see the answers. They are advised to convert the once family home into as many rooms as possible - why not stick another 3 in the loft - to maximise the potential rent income.
All across former council estates there are official and unofficial HMOs built to the BBC inspired recipe. Once proud areas are now transitory rubbish tips, where nobody cares about their area and the houses are poorly looked after. The predominantly young people and families renting these rooms are trapped by the huge rents and the lack of alternative affordable housing. As a result, the benefit dependency is an obvious cause.
For a government to actually legislate to make this situation easier to be created is shameful. Has Shapps never been to Hatfield to see the above described communities in all of their glory?
08/09/2010 3:52 pm
Any chance of a Spartist loon having the inclination to do add-ups and understand the private residential market.
Look at the professional residential press and the yields on residential property with AST agreements are in the 3 - 5% range. Owners are in it for the capital appreciation.
Not factored into this equation is the risk being run on the deal. A 20% fall in values would put them out of the game and a date with Carey Street. Investment in residential property breaks the rules of normal investment which is low risk/low reward and its binary.
So here we come to our armchair Spart loons with their hair-brained speculations on the ease of conversion from 4-bed houses to 1-bed flats.
This would be about £10,000 a unit, making a total of £40,000 on the above example. How would resident superloon Spart Joe Halewood feel taking that risk in a market about to collapse.
Much easier for the loony Spartys to take to the keyboard for 30 seconds of onanistic relief.
08/09/2010 4:44 pm
Anonymous of 3.52pm, you've no idea, have you? There are innumerable landlords whose business model is based on renting to HB claimants, to the exclusion of all others. They locate and convert properties on this basis in every UK city I've been to.
But then, only some of us actually leave the house.
08/09/2010 8:47 pm
anon 3.52 - i gather you cant do simple arithmetic?
lets use your £10k per unit making it £40k to convert 4 bed house in 4 x 1 bed flats. The PSL landlord gets £2600 extra income pcm or £31,200 per year. So it would take only 15 months to get back all the investment - thats a return of 78% on investment per year!!
Still think PSLs wont go fo it you numpty!!!
Oh dear how embarassing that an alleged "Spart" has a better grasp of finances than the anonymous rightist chickens that post on here. Is there a fault with the figures then? And a 78% ROI means they are in it for 3-4% capital appreciation does it?
Resident superloon? Taking what risk - that I can get a 78% return on investment per annum for a market that will increase with huge levels of demand?
The 6 bed example example realise a £57k return on a £60k investment - thats a 95% return on ivestment per annum. Am i still a superloon? And just think if they keep it for 15 years - thats an additiional £800k over and above that investment. Still think PSLs wont go for it you ignorant and incompetent coward?
08/09/2010 9:47 pm
Don't worry too much Owen James Enoch or whatever you wish to call yourself, I'm only a temporary identity that will dissappear if your boy delivers the progressive solutions he promised. But when he does not I'm sure you'll get over it. It is still astonishing that you have managed to find a group that you can latch onto that share your warped perspective on life, tenants, and people in general; but at least you have not got the hypocritical gall to be working for a quango like Owen. Now off you go and write another letter to the local rag so you can feel bigger than your neighbours.
09/09/2010 1:35 am
To the ultimate Spartist
Will you put your money where your mouth is?
On your figures, an investment in HB-based PSL, is the road to riches.
Later this month Ssvills will be having an auction with at least 180 properties perfect for the type of deal you have set whiich will put you onto a glistening road.
I can tell you that Commercial Acceptances or Close Brothers will finance 85% of the deal so that you will only have to cough up 15% of the deal - your savings or a second mortgage on your house will be the security on that 15%.
Now let's see the colour of your money and the quality of your argument.
You've told us it's easy. The figures stack up, according to you. It's a no-brainer.
As Clint said: Well, do you feel lucky, punk?
Underneath the duvet isn't an option.
09/09/2010 9:03 am
'a 95% return on ivestment per annum' Yeah right.
'lets use your £10k per unit making it £40k to convert 4 bed house in 4 x 1 bed flats.'
You do realise that you do actually still need planning permission to convert a house into flats though...
09/09/2010 9:24 am
"Housing minister Grant Shapps has overturned rules governing houses in multiple occupation introduced last year.
The minister has introduced regulations that will allow landlords to change the definition of a property from a standard house to a house in multiple occupation without seeking planning permission."
09/09/2010 11:34 am
What is a House in Multiple Occupation?
Essentially the new planning legislation has brought the definition of a “House in Multiple Occupation” (“HMO”) in line with the definition in the Housing Act 2004 except for a converted block of flats to which section 257 of the aforementioned Act applies. An HMO is a house or flat occupied by 3 or more people who rent a property and are not related and share a kitchen, bathroom or toilet.
Where between 3 and 6 unrelated people, who satisfy the criteria of an HMO referred to above, live in a property and share one or more basic amenities the property will be classed under a new Use Class C4.
More than 6 unrelated people living in a property who share basic amenities is classified as a sui generis use
09/09/2010 11:53 am
"The definition of a small HMO (the C4 use class) will remain and permitted development rights will be extended to allow all changes between the C4 and C3 classes without the need for planning applications. In areas where there is a need to control HMO development, local authorities will be able to use an Article 4 direction to remove these permitted development rights and require planning applications for such changes of use.
These proposals will mean that any change of use between dwelling houses and small HMOs will be able to happen without planning permission unless the local council believes there is problem with such development in a particular area. In these areas they will be able to use article 4 powers to require planning permission."
09/09/2010 3:05 pm
All potential HMOs have to be registered anyway.
And the Council has the option to block these as well...