Buy-to-Let increases burden on welfare

July 7, 2015

It is expected that George Osborne will be cutting Housing Benefit in his budget on wednesday, it has been reported through certain media that he is considering forcing all housing benefit recipients to contribute towards their own rent. It has also been reported that he is pushing for the benefit cap to be lowered from £26,000 to £20,000 outside London and the South East.

This is all part of the chancellors drive to cut the welfare bill.

This may become a pointless excercise for as he cuts housing benefit to claimants on the one hand the numbers of claimants are increasing with the availability of buy-to-let properties increasing, the buy-to let sector at present is booming and there appears no let up in demand.

According to the GMB, the number of   buy-to-let homes increased by  52,300  in the private rented sector in the first three months of 2015 which the union says could add another 20,000 new housing benefit claimants over the quarter and 80,000 over the year, they went on to say the annual additional cost to the taxpayer in housing benefit will be “at least £440 million”.

Kamaljeet Jandu, GMB national officer for equality, said: “This growth in buy-to-let lending will give rise to even more claims for housing benefit to pay the rents quite apart from pricing would be home owners out of the market, taxpayers already pay rent to private landlords owning nearly 1.6 million dwellings in England and Wales”.

This situation makes no sense whatsover as this money going to private landlords could be used to finance the building of new houses,   tax payers would see the long term benefit by getting returns on housing stock that would be owned by the governement.

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

Identifying Common Structural Issues in Balconies

Living in a city like Sydney, where a breathtaking view of the cityscape and ocean can be the crowning jewel of your property, it’s no surprise that balconies are key features sought after by homeowners. However, over time, these aesthetically pleasing elements can become a structural nightmare due to a range of issues that compromise…
Read More →
Estate Agent Talk

Stay Safe With Aluminum Ladders: 5 Facts About Lightning Attraction

Whether redecorating, putting items away in storage, or cleaning windows, there are many reasons why you may need ladders. They’re likely an item you have tucked away in your garage or, if a contractor, a tool you carry to and from work. Although highly beneficial, it’s essential to use this device correctly. Why? Aluminum is…
Read More →
Letting Agent Talk

Some Instances Where Landlords Are Liable for Slip and Fall Accidents

In bustling urban environments, slip-and-fall accidents can disrupt lives, leading to injuries and legal complexities; landlords are responsible for maintaining safe premises. From icy sidewalks to poorly maintained staircases, instances where landlords may be held accountable for slip and fall accidents are diverse and nuanced. Understanding these scenarios is a matter of legal obligation and…
Read More →
Breaking News

Sales agreed up 12% on last year despite annual mortgage costs 61% higher than 2021

UK house prices broadly static but sales volumes are up 12% year on year UK house price inflation unchanged from last month at -0.2% Almost two thirds (64%) of all homes are in local markets with annual price falls, down from 82% last October with a clear north-south divide emerging. Higher mortgage rates continue to…
Read More →
Breaking News

Weekly News Roundup – 26/04/24

A roundup of the week’s top property and proptech news stories in partnership with Proptech-X   Table of Contents Renters Reform Act – but what about Section 21? Agents urged to review AML policies following recent HMRC fines Smart Spaces & HID Signo reader tie up   Renters Reform Act – but what about Section…
Read More →
Estate Agent Talk

Understanding House Value in the UK: A Simple Guide

Everyone talks approximately assets expenses, from the records headlines shouting about the contemporary marketplace traits for your friends debating whether or no longer now is the proper time to shop for or sell. It might possibly appear to be a jumble of numbers and possibilities, but at the heart of it, knowledge house cost isn’t…
Read More →