In response to a question from Mortgage Solutions, The Mayor, who was visiting mortgage advice firm, the Coreco Group in the City today (pictured above), said he is not opposed to the Housing Benefit cap, despite fears over recent months that the cap could impact the capital’s social make-up.
The new Housing Benefit cap, set to be phased in nationally this year, has limited weekly payments to £250 a week for a one bedroom property, including shared accommodation, £290 a week for a two bedroom property; £340 a week for a three bedroom property; and £400 a week for a four bedroom property.
At the moment only people who are moving house are affected but within a year the cap will be in place across the country.
The Major said: “I don’t want to see people move out of London. We’re not yet seeing that partly because we got some mitigation in.
“We delayed it and we have got a lot of money for people in tough cases, including those who need to live closer to their children’s’ schools or place of work. It changed so that councils could pay the LHA direct to the landlord rather than via the tenancy, so there is an opportunity to bargain the rent down.
“It is true that councils are fulfilling their statutory duty and looking at where they can house tenants, but what is not yet happening, to the best of my knowledge, is significant numbers of Londoners moving yet.
“I’m not saying it won’t happen as there is a massive churn in the housing market anyway, what I don’t think we’re going to see ‘Kosovo-style’ migration.”
The Mayor said that to get London’s property construction sector moving, the government is aiming to bring all the land in public ownership and de-risk it, and make it available for developers.
“This not only creates loads of jobs, it answers the greatest need in the capital which is to allow people the chance to live somewhere near their place of work.
“What we need to do now is to get the pension funds to get involved and finance this. These people are sitting on huge assets and will get a good long-term yield.”
The Mayor said he will be having a roundtable discussion at City Hall to try and attract potential investors.
“I think they should come to the party, if not, they’re missing an opportunity,” he said.
