• Welcome to DOSBODS

    Please consider creating a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

Sign in to follow this  
Wight Flight

LHA Rates - causation or correlation

Recommended Posts

Following on from where can you live for £100k, I have been looking more at LHA rates.

This is the easiest place to find them all - https://www.entitledto.co.uk/help/Local-Housing-Allowance-Rates

I did a random test based on Guildford, Bristol, Swindon, Ipswich, Woking, Ashford, Durham and Winchester.

My very unscientific research looked at the cheapest three bed shithole you could buy in any of those places. I excluded places that needed a complete renovation, over 60's discounts and 'odd' things like mobile homes. I settled on the lowest price that would have given me a choice of two or three shitholes.

In nearly every case, if you multiply the annual rent by 20 (i.e. look at a 5% gross yield), you will be within a few k of the lowest price for a property. The exception was Guildford where your would need to add anther £30k to your budget, as your yield would only be 4.5%.

So, if we work on the assumption that you don't want to get down and dirty with the druggies and dropouts, you need to live somewhere that would fetch LHA + about 20% per month, just enough that the benefit bozos wouldn't be able to afford to pay.

That therefore means that a liveable (not good) place will cost you 24 x the local LHA rate.

So, for your budget of £100k for a two bedder, you need to find somewhere with an LHA rate of <£350 pcm.

Good luck with that. 

 

Share this post


Link to post
Share on other sites

Interesting way to look at it but not unexpected results.  I would think rural areas would change the ratio somewhat.  For the half decent 100K house you need to be financially independent, retired or remote working.  

Share this post


Link to post
Share on other sites
1 hour ago, UmBongo said:

Would you rather 'Fly like an Eagle' ?

Completely disrailed @Cunning Plan 's thread now! :P

Remind me, what was it about anyway?

1 hour ago, UmBongo said:

Would you rather 'Fly like an Eagle' ?

Completely disrailed @Cunning Plan 's thread now! :P

Remind me, what was it about anyway?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.