Campaigners are planning to picket the Tower Hamlets Council Town Hall in London tonight to demand protection of families in the impoverished East London borough from eviction if they are forced into rent arrears due to benefit cuts.
The campaigners from the Tower Hamlets Benefits Justice will submit a petition to the councilors, asking them to challenge the government and refuse to evict tenants that cannot pay their rents.
Local residents say although the council is not responsible for the government’s austerity drive and the benefit cuts, they can stand up to the government’s “dirty work” and avoid signing the eviction orders.
“We calculate 10,000 households will be hit when further cuts come in next month,” a spokesman for the group said.
“Benefits are high in the East End because of the high rents in this expensive part of London”.
Tower Hamlets is the home to London’s financial hub, the Canary Wharf that houses major multinational banks and financial institutions.
However, the Ease London borough is a prime example of poor-rich divide in the British capital, as four out of ten children living there are in poverty.
It is estimated that one-in-five disability benefits claimants in Tower Hamlets could lose their entitlements, due to government cuts.
daily alternative | alternative news – Anti-eviction protest to hit East London
Britain’s House Price Crash – 2016 Predictions Mount
Housing in many countries, especially Britain, is no longer an investment; it’s now made up of three fundamentals: consumption, crime and concern. The general public getting on the bandwagon with cheap loans is consumption. The crime slot is taken now that over 40% of Britain’s housing stock is bought in cash with property used as an international laundrette to wash hundreds of billions and concern comes from savers who quite rightly think that the banks and government will steal their hard-earned (low or negative savings rates), tax-paid money that drives a reluctant middle class into becoming landlords.
Cheap loans will prevail but credit is drying up the world over. The criminals have stopped buying in over-heated Britain and even George Osborne, who has fueled the bubble, is taking action against amateur landlords that make up the vast majority of property investors in Britain.
But don’t take my word for it. Predictions of a house price crash in 2016 are now mounting thick and fast, something unheard of in previous property recessions and particularly back in 2007 just before the last epic fall.
We kick off with consumption. The Week has a piece from Pete Redfern, the chief executive of Taylor Wimpey, Britain’s biggest house builder who says that “The UK is in a “borderline place” on home ownership as a result of rampant price rises and more needs to be done to rein in the pace of (property) inflation”. It also makes the observation that “London, where the housing market is becoming so detached from the wider UK that it has been called “another country”.
Then we have dodgy dosh from overseas; as RT reports – “Asian and Russian luxury homebuyers are deserting London’s property market amid economic uncertainty. Property buyers from Asia made up 26 percent of those buying homes in wealthy areas of London such as Kensington, Chelsea, and Belgravia in the first three quarters of last year. That figure has dropped to 6 percent according to figures compiled by estate agent Hamptons for the Financial Times”.
And not forgetting those poor fearful middle class reluctant landlords about to lose their shirts. From industry expert Letting Agent Today – “Osborne has slashed rental sector confidence ‘to below crisis levels’. Landlords’ confidence in the buy to let sector has collapsed to an all-time low and is now “worse than levels witnessed during the financial crash” according to a trade body. Richard Lambert, chief executive of the National Landlords Association, says confidence in landlords’ business expectations has tumbled by more than a third over the past year – down from 67 per cent to an all-time low of 43 per cent. The current level of confidence in the BTL sector is now five per cent lower than levels witnessed after the financial crash in 2007”.
The property bubble will burst and London will be its epicenter. But it’s not just London that is causing it. Back in the early 1990s I was already a few years into my 25-year career in residential property. Chancellor Nigel Lawson decided to abolish MIRAS in 1988 – a mortgage relief scheme which saved homeowners thousands on their payments. Stupidly, Lawson gave about six months notice. This pushed up prices as buyers rushed to snatch up a property before the tax break disappeared, much the same as Osborne’s increase in tax and subsequent epic run by property investors to beat the deadline this April.
On that day in April 1988 I saw the entire property industry implode. Property prices fell by around a third, 1.5 million homeowners declined into negative equity, annual repossessions doubled, tripled and then quadrupled in a matter of months. At one point repossessions represented 1 in every 130 households of Britain.
A few years later I switched from selling property to renting and ended up managing one of the biggest residential rental portfolios in the UK. I had 11,000 repossessions to manage because the government had offered tax breaks to banks and building societies to stop these units reaching the market via auctions (called Business Expansion Scheme Companies or BESCo’s) and utterly destroying what little remained of the housing market. I also had another 2,000 high-end units where building companies had gone bust with no one to buy them. We filled them with all those that had lost their homes or where the government were paying housing benefit – obviously.
Over 40% of Thatcher’s right-to-buy disaster ended up being repossessed. Cameron has just made the same mistake, except he’s a bit late in the game announcing it this time around.
Like last time, the bubble will burst where the price is most inflated – London. Unlike previous deflations, this one is predicted, and the writing is large and loud.
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