Builders specialising in loft conversions in Ealing may see a substantial collapse in their business due to the government’s cap on housing benefit, which will make it less lucrative for people to divide properties into apartments, annexes and studios, according to some in the industry.
The soon to be introduced cap on housing benefit, announced by the chancellor George Osborne in his autumn spending review, could see many claimants priced out of the capital, consequently meaning far less demand for the new construction of Ealing’s loft conversion-style apartments.
The fallout from the housing benefit cap has made waves across London, with mayor Boris Johnson denouncing the idea, saying he was against ‘Kosovo-style social cleansing.’
London Property analyst Felix Fortescue said: “Ealing’s loft conversion-style housing will always be in demand by working people, and will also still be financed by housing benefit at the lower end of the scale, so builders need not fret too much.
“However, the days when housing benefit could be expected to cover the rent on a plush and spacious Ealing loft conversion-type apartment in an exclusive area are definitely over.
“So a small slump in demand for these developments may not be out of the question, as some benefit claimants move out of the capital rather than switch to a more modest dwelling within it.”He added.
Clinton Foakes, who runs a building firm in Ealing of the same name which specialises in loft conversions, said: “Most clients opting for a loft conversion in Ealing are commissioning the work to enhance the utility of their homes for their own personal comfort and enjoyment; not in order to lease the extra space to benefit claimants.”
“We are not too concerned about the housing benefit cap affecting demand for our trade.” He added.
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