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Monday, 15 July 2013

Monday, July 15, 2013 Posted by Jake 3 comments Labels: , , , , , , ,
Posted by Jake on Monday, July 15, 2013 with 3 comments | Labels: , , , , , , ,

July 2013 saw the rollout of a £500 per week (after direct taxes) cap on benefits paid to a family. Using graphs produced by the BBC we contrast how far the government will go to help the poor, with how far it is prepared to go to help the rich. 

The impact of this is families on benefits will be pushed out of the South East, while families earning up to £80,000 will be subsidised to buy properties in 99% of the UK.

Our assumptions relate to renting or purchasing a 3 bedroom property at the cheaper end of the local market in each area:

1) Renting family on benefits:
  • can afford to pay 30% of post tax income on rent or mortgage payments. With the benefits cap that would be £600 per month.

2) Buying family: all the below are eligible for government 'affordable housing' policy:
  • can afford to pay 30% of gross income mortgage payments
  • has a deposit equal to twice gross income









3 comments:

  1. Reported by the Independent:
    http://www.independent.co.uk/news/business/news/chancellor-ignored-advice-from-treasury-to-launch-help-to-buy-scheme-10027240.html

    "Chancellor ignored advice from Treasury to launch Help to Buy scheme..
    Last September, the Chancellor claimed Help to Buy “is driving a big increase in house building, boosting the construction industry and increasing housing supply”
    But Treasury advice from two years ago, when the policy was being formulated, predicted that such equity loans “will have a limited impact on housing supply since most of the sales are likely to be for homes which would have been built anyway”.

    The advice, obtained by The Independent though a Freedom of Information request, also suggested the majority of the purchases made through the scheme “would likely have happened anyway over time”..

    ReplyDelete
  2. How big a subsidy do people get on the help to buy scheme?

    ReplyDelete
  3. Help to Buy is not for affordable housing

    ReplyDelete

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