London Boroughs pay tenants to move to Southend (From Echo)
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London Boroughs pay tenants to move to Southend
12:19pm Monday 17th December 2012 in Local News
LONDON borough councils are offering hundreds of pounds to get their tenants to pack up and move out to other areas ahead of looming benefits cuts.
South Essex councils say they are furious they could have to bear the burden of thousands of London tenants descending on already overburdened areas due to the cash incentive schemes.
It comes after the Government announced it would put a £21,000 limit on the amount of housing benefit people can claim from next April.
It will be especially difficult for people in London to find homes which come under the limit. An average two-bedroom flat in a London borough costs £1,930 but in Essex the figure drops to £938.
In the countdown to the capped benefits, councils such as Hackney, are offering tenants at least £500 to move to other areas where rents are lower, including south Essex.
Some authorities are even offering a choice of seaside our country locations.
Furious local councils say initiatives like Hackney’s Fresh Start Scheme are set to put a huge strain on services in Southend, Basildon, Rochford and Castle Point and could push up council tax.
The schemes vary but typically pay either several week’s rent or a deposit for private rented accommodation elsewhere but when the money runs out, local councils will be responsible for paying housing benefit and to trying to accommodate people on already pressured housing lists.
It will mean they will also have to pay for services such as school places and social care.
Defiant Basildon council deputy leader councillor Phil Turner, who is also cabinet member for housing and landlord services, said: “I would give families an assurance they won’t be part of our housing list and I’m pretty sure that our partners, the housing associations, won’t be taking them on either.”
However, the council which already has about 5,000 on its waiting list, like other authorities, cannot refuse to pay for eligible claimants for housing benefit for private accommodation.
Martin Terry, Independent councillor for Southend, said: “We could end up with a whole raft of people coming to Southend who are totally dependent, that will put enormous pressure on our already over-stretched system. At the council we already know we don’t have enough school places, we’ve already got pressures on budgets.”
He said this could also put pressures on free school meals, home to school transport, and even library services. This could even lead to increases in council tax to meet the demands.
Mr Terry added: “I’m ever so grateful to the Echo for picking this up because it’s a serious problem. It’s not about discriminating against any individual families, this is about pure economics and this will threaten Southend’s financial sustainability.”
Comments are closed on this article.
Comments (35)
12:28pm Mon 17 Dec 12
perini says...
12:34pm Mon 17 Dec 12
asbo industries inc says...
12:47pm Mon 17 Dec 12
Nebs says...
1:17pm Mon 17 Dec 12
madmax1 says...
The likes of Martin Terry and other no marks on Southend council need to start thinking out side the box in this manor for a range of issues including housing.
1:29pm Mon 17 Dec 12
howironic says...
12:19pm Monday 17th December 2012 in News
LONDON borough councils are offering hundreds of pounds to get their tenants to pack up and move out to other areas ahead of looming benefits cuts.
South Essex councils say they are furious they could have to bear the burden of thousands of London tenants descending on already overburdened areas due to the cash incentive schemes.
It comes after the Government announced it would put a £21,000 limit on the amount of housing benefit people can claim from next April.
It will be especially difficult for people in London to find homes which come under the limit. An average two-bedroom flat in a London borough costs £1,930 but in Essex the figure drops to £938.
In the countdown to the capped benefits, councils such as Hackney, are offering tenants at least £500 to move to other areas where rents are lower, including south Essex.
Some authorities are even offering a choice of seaside our country locations.
Furious local councils say initiatives like Hackney’s Fresh Start Scheme are set to put a huge strain on services in Southend, Basildon, Rochford and Castle Point and could push up council tax."
I fail to see why council taxes should increase. They will only be moving into properties that are already available and would be taken by first time buyers or such like, if anything, going by this argument, council taxes should decreased due to the increased revenue.
2:03pm Mon 17 Dec 12
Carnabackable says...
A number of London councils are planning to move housing benefit claimants outside the capital as cuts shrink the number of properties affordable to people on welfare, prompting fears that a policy to export poor residents of the capital will strengthen "divisive rightwing extremism" in northern towns.
Tory-led councils such as Hillingdon, Croydon and Westminster have admitted either placing claimants outside the capital or said they were preparing to do so. Adverts have been placed in local newspapers in Berkshire asking for landlords to become part of a "three to five years guaranteed local authority scheme".
A political storm erupted over the policy to ship out poor households when it emerged that Labour-run Newham council was planning to move 500 families who relied on housing benefit some 160 miles away, to Stoke-on-Trent.
Newham council says it can no longer afford to house tenants on its waiting list in private accommodation. It says rent rises linked to the Olympics and the demand for housing from young professionals has caused rents to rocket in east London.
As part of its welfare reforms, the government has introduced caps on housing benefit of £250 a week for a one-bedroom flat and £400 for a four-bedroom property. With the government housing benefit cuts starting in January, many councils are wrestling with rising numbers of people finding they cannot afford central London accommodation.
A proposal sent to Westminster council by one of its private providers, the Smart Housing Group (SHG), suggested a path of rehousing "150 people within the next 12 or so months" to perhaps Derby and Nottingham "and ideally with an option for to increase this number over time to perhaps closer to 500 properties".
Westminster confirmed this was "one of the options" it was looking at in conjunction with two boroughs with which it shared services – Hammersmith and Fulham, and Kensington and Chelsea. It stressed that a decision had yet to be made.
A spokesman for Kensington and Chelsea said: "Unfortunately we are having to consider placing people who approach the council as homeless outside of London. Private rented accommodation in the is some of the most expensive in the country and so it is inevitable that changes to the local housing allowance will have a greater impact here than in other parts of the capital.
"We have written to all the families affected by the cap on housing benefit to offer them advice and assistance, which has included advising them to look further afield if they wish to access more affordable accommodation. Many will have to make the choice as to whether to move if they cannot find suitable affordable accommodation in London."
Labour-controlled Ealing council in west London said it had "not yet had to move any families out of the borough due to the benefit caps. In 2011/12, we placed just a couple of households outside of Ealing though this was by mutual consent. We have recently made offers of out-of-borough private sector accommodation to a small number of families, mainly in Buckinghamshire.
The council added: "It is not possible to accurately predict the number of other families we will need place outside of Ealing, because this will depend on how many landlords are prepared to drop rents to reflect the new LHA rates. However we expect the gap will be too great for many landlords – particularly with the borough's larger family-sized homes."
Others admitted they had tried and failed to place families outside the local area. Labour-run Waltham Forest, in north-east London, confirmed it had sent a small number of families to accommodation in Luton just over a year ago, and that the council had also tried to house other people in Kent but the plan fell through.
With a waiting list of more than 20,000, the borough was "crammed to capacity". A council spokesman said: "We just haven't got the properties in the borough to meet the need." The effects of the housing benefit cap were only just being felt and were expected to make matters worse, he added.
Newham said the gap between market rents and the housing allowance was too big following the central government cap on housing benefit payments. Since January, councils have been writing to claimants telling them of shortfalls in rent that they will have to make up. The Chartered Institute of Housing estimates that Newham must have at least 1,500 families affected by welfare cuts immediately.
Newham, one of the most economically deprived local authorities in the UK, which legally must house claimants, said it had had to look "further afield for an alternative supply" of affordable housing.
The Labour-controlled local authority, which will host 2012 Olympics events, wrote to the Brighter Futures housing association in Stoke, offering it the "opportunity" to lease homes to the council.
Gill Brown, chief executive of Brighter Futures, wrote to local MPs warning of the consequences if "London boroughs are allowed to export their most vulnerable and challenging families to cities like Stoke-on-Trent".
She likened it to the experiences of 10 years ago, when a Home Office dispersal programme moved thousands of refugees into privately owned properties in north Staffordshire.
"The result was huge unplanned pressure on local services, the collapse of already vulnerable neighbourhoods and the rise of divisive rightwing extremism," she said.
A Labour MP warned that Newham's move was the "tip of the iceberg". Karen Buck, the Labour MP who was passed the Newham letter, said it showed that ministers were wrong when they claimed no one would need to move as landlords would lower rents to accommodate welfare cuts.
She said there was increasing evidence that local authorities were not able to meet their responsibilities. "We see homelessness rising, rents rising and this is a big problem for a government which claimed that none of this would happen."
Conservative ministers were incensed by the charges. Grant Shapps, the housing minister, said councils would not be allowed to "export their poor".
He said that rules his department would issue would make "locality a principal linkage". He added: "If somebody is working or has children at school we will not allow councils to send people out of the area."
Earlier, he accused Newham of overstating the problem and "playing politics".
Iain Duncan Smith, the work and pensions secretary, called the story nonsense and said there were "thousands of houses" within five miles of Newham which fell within the cap.
However housing experts said signs indicated that more than 60% of private landlords would not take tenants on benefits.
Shelter's chief executive, Campbell Robb, said: "This is the terrifying reality of our housing crisis today – hundreds of families potentially forced to move halfway across the country, uprooted from schools, support networks and employment opportunities.
"Most worryingly, this is only the thin end of the wedge, as further reductions in the housing safety net start to bite over the coming months.
"The dangerous cocktail of cuts to housing benefit and spiralling rents is making finding a decent home increasingly unaffordable for families across the country. Those unable or unwilling to move away from their local area may be forced to overcrowd or accept a home in appalling conditions to make ends meet."
2:15pm Mon 17 Dec 12
Shoebury_Cyclist says...
And yet the government still refuse to cap rents and build social housing. They prefer handing billions in housing benefits straight to unscrupulous private landlords thus increasing the drain on the public purse.
Building social housing + capped rents = reduced numbers of housing benefit claimants and reduced cost.
2:31pm Mon 17 Dec 12
megamite says...
yes we are in crisis point, the government has to face up to the fact they are going to have to build more housing for the growing population. The fact that they are building unaffordable homes on green belt land makes me laugh, who are going to live in these places? People from London who will sell up their pad get something double the size own here in Essex whilst shipping the locals out.
2:58pm Mon 17 Dec 12
SpiffSpaffington1984 says...
3:03pm Mon 17 Dec 12
Carnabackable says...
3:30pm Mon 17 Dec 12
reptile says...
OL.
3:37pm Mon 17 Dec 12
notinwestcliffanymore says...
Possibly the knock on from this will those that work and want to live in london will now be able to afford to do so, as vast numbers of what were "subsidised" houses will be available to buy if landlords can't fleece the taxpayer anymore.
3:38pm Mon 17 Dec 12
Nebs says...
4:02pm Mon 17 Dec 12
whataday says...
5:00pm Mon 17 Dec 12
Shoebury_Cyclist says...
http://www.bshf.org/
published-informatio
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ePubID=5E017604-15C5
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If you think people will magically be able to buy houses in London where 'affordable' property prices don't exist, then you're living in cloud cuckoo land.
5:11pm Mon 17 Dec 12
Nebs says...
6:05pm Mon 17 Dec 12
Shoebury_Cyclist says...
6:07pm Mon 17 Dec 12
notinwestcliffanymore says...
The number of Housing Benefit claimants reached a new high of 4.95 million in December 2011
In-work households account for almost all (93 per cent) of the increase in the number of claimants in 2010 and 2011
In December 2011 almost one in four households who rented their accommodation and were in employment received Housing Benefit
.
.
.
.your numbers seem to say that the 93% represents the increased claiments during one year, NOT the total claiments overall which seems to be 25%
6:10pm Mon 17 Dec 12
notinwestcliffanymore says...
7:26pm Mon 17 Dec 12
Bosniavet says...
Yes, we do need more social & affordable housing, as well as, in my opinion, statutory rent control (say no private rents to be more than 2 times the comparable social housing rate, with an appeals process for "luxury" or "prestige" properties). Part of the reason rents, & by extension property prices in some areas, are so high is because of the previous willingness of the authorities to pay whatever landlords thought they could get away with.
Mind you, according to at least one of my local councillors, there is no evidence whatsoever that anyone has moved to Southend from elsewhere whilst claiming housing or council tax benefit.
9:04pm Mon 17 Dec 12
emcee says...
Cap the amount landlords can charge for rent. There are too many greedy, fat cat landlords raking in what amounts to easy money.
8:33am Tue 18 Dec 12
Nebs says...
9:11am Tue 18 Dec 12
perini says...
11:50am Tue 18 Dec 12
jolllyboy says...
2:39pm Tue 18 Dec 12
babybird0404 says...
3:26pm Tue 18 Dec 12
notinwestcliffanymore says...
3:26pm Tue 18 Dec 12
emcee says...
On a £150,000 flat that is £7,500 a year. This is quite ample for a property valued at that as landlords will rarely spend more than an average of 10% of that rent on maintenance a year. That way, landlords that let their property deteriorate will find the value of the property fall and, thus, the rent they can charge will also fall.
There are too many landlords that are charging extreme amounts or rent for mediocre or bad properties.
Whether you buy or rent you should be able to make the place you live a home, not just a shelter.
Over a lot of Europe renting a property is more "normal" over having a mortgage. These Eropean tenants are usually not only afforded a lot more protection and rights but the rent they have to pay is a lot more controlled. This makes renting a lot more desirable and in a lot of cases preferential over buying a property.
The trouble with this country is that too many landlords are buying up all the cheap properties, leaving them delapidated and charging exhorbitant rents, all in order to make a quick buck. I have never seen a professional landlord who is struggleing for money. It is probably one of the only businesses that will not be affected during hard times and it's high income is, more or less, guaranteed.
7:43pm Tue 18 Dec 12
Nebs says...
9:25pm Tue 18 Dec 12
Seasider90 says...
11:38pm Tue 18 Dec 12
echoforum says...
Loads of cheap housing ..in fact so much housing we would be doing them a favour and of course plenty of heat..so cheaper fuel bills for them ..cheaper council tax...need I go on!!!!!!!!!!!!.
In fact I think our Government should encourage all us Brits to relocate to the Med countries-start to rebalance broken europe..clearly the UK is slowly becoming a natural reservoir what with all the rain we get so lets take advantage of warmth,fresh veg etc
3:51pm Wed 19 Dec 12
Jose El Mezclador says...
The scots have been send ther riff-raff down here for years and years
3:54pm Wed 19 Dec 12
Jose El Mezclador says...
5:24pm Wed 19 Dec 12
SANDRA PETERS says...
7:18pm Wed 19 Dec 12
John T Pharro says...
10:21pm Wed 19 Dec 12
Antonius says...