Andrew Ducker (andrewducker) wrote,
Andrew Ducker

I can't remember if I made this prediction in public

The government announces that housing benefit will be capped at a lower level. Which means that either landlords will have to take less money, or poor people will have to stop living in nice places. At the time they largely argue that landlords have been pushing rent up above the rate of inflation (ignoring the fact that many of these landlords bought during a housing boom).

Now, of course, we're getting the first reports of landlords not wanting to take on people on housing benefit, and of landlords saying that they're going to go bankrupt because they've been depending on the rents coming in from them.

If this happens then you'll see them dumping property onto a market that's stagnant (at best). Which will lead to housing prices dropping again, just as the government is announcing plans to get it going (by effectively lending people the deposit for the property if they can afford the repayment on it).

Frankly, I can't see this ending well. I hope I'm wrong.

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