The Government has confirmed the freeze on benefit payments which came into force in April 2016 will end next year.
The freeze on increasing benefit payments inline with inflation has been controversial from the beginning, this combined with the introduction of Universal Credit has been blamed with the increase of both rent arrears and homelessness for many people on low incomes.
So will the freeze open the housing market up to people who have been trapped in poor quality accommodation because they have been unable to afford to move to improve their circumstances.
The change in benefit payments is set to increase the money claimants receive by 1.7% meaning the average single person with no dependants will be entitled to £322pm rather than the £317pm they currently revive as either Job Seekers Allowance (JSA) our Standard Element of Universal Credit (UC).
Housing benefit or Housing element rates are expected to rise by the rate of inflation which is predicted to be 2% and will see local housing allowance rates for a 1 bed property in Central London rise from £276.51p/w to £282.04p/w but with average monthly rental price for a 1 bed property currently at £1555pm even this increase will leave many people struggling to pay rent.
Overall since the benefit freeze was introduced the average family has lost £560pa year on year, driving many people into poverty and the increase in the use of food banks has risen steadily making this temporary assistance a normal part of life for many including those in employment.
For the last decade there has been an increase in self titled Property Gurus selling their get rich quick training course to millions of naïve and money hungry property virgins.
The attraction of becoming a millionaire in just a few months without evening using your own money sounds just to good of an opportunity to pass up, so these wannabes happily part with £1000s of their hard earned money to be taught to the secrets ( even Coronal Sanders would be proud of) of property investment
But the reality is starkly different, after attending the course many delegates find they have not found the key to instant wealth instead being told the secretes are behind another door which can only be unlocked by handing over more of their money to enter the VIP area.
But as the industry changes and the next big thing comes along, so these property gurus morph into experts of this new area of wealth, renaming and regurgitating already used material which allows them to continue to ply their trade again.
It would seem the only people becoming property millionaires are the classroom Gurus… but does this then bring forth the old adage Those who can’t…. teach
As with all aspects of society, there are good and bad in everything and we must not forget the hundreds of very good educators out their painstakingly assessing potential candidates to ensure their course is right for them, openly discussing the high risks and how to manage debt as well as preaching not to put all your eggs in one basket.
Of late there seems to be an awakening on the realism of these courses with social media providing the platform for more and more negative realisations that the £25k+ spent on courses to seek the precious elixir could have been the starting block of a lucrative property journey with sustained longevity.
An increased number of attendees are becoming disillusioned by the validity of these property magicians and their ability to really pass on the secret of making millions.
The mounting debt that some attendees accrue is staggering and can have a detrimental know in effect to family, friends, social life and mental health, sadly only this week someone took their own life over issues relating to property courses and mounting debt.
What is the answer? Should the property education industry be regulated, but where to start and who will police that.
Should educators take more responsibility for their attendees and that they are teaching.
Once the buzz of the course is over
Once the first HMO has been purchased and battled concluded with local councils and planning department, there is still no time for the property novice to rest on their Laurels as this is where the real property journey starts and the mine field that is the Private rented sector brings with it a tempestuous ever changing storm of legislation which can see even the most seasoned landlord fall foul if they do not keep themselves constantly up to date.
The rally cry from the deflated and exhausted investors is to now rush to social media to grasp at any scraps of help and advice when deposits have not been protected, tenants fail to pay rent, refuse access and landlord now want to evict.
Sadly social media, although a free option which can provide expert advice if you catch the right person on the right day, is mainly swimming with other rookie landlords in the same boat throwing out lifebuoys of incorrect or outdated advice.
So is the next property revolution to see these Millionaire gurus turn their hand to training courses headed “How to be a good landlord”
Do these public speakers have the knowledge and expertise to successfully deliver in a 2 day course that housing experts have spent years continuously learning.
An uneducated landlord is a bankruptcy waiting to happen and with more legislation due to come into force in 2020 can the get rich quick generation afford to become the complacent.
