“Bedroom Tax will curtail spending capacity” says estate agent

Mr. Ranvir Singh, an employee of Henley Charles Estate Agents at Erdington, Birmingham shares his views on Bedroom Tax.Bedroom Tax is for social housing and doesn’t affect private lending sector. The Henley Charles Estate Agents deal private lending sectors with individual landlords. Hence the company and its employees will not be affected by the tax.

The government is conservative in introducing the tax, with a view to cut down some benefits to staff and as such it is a staff tax. As regards with the use of the tax revenue, it will benefit in getting big rooms at a lower cost, which will be affordable to people. If people cannot afford the tax, they have to move out to small spaces, facilitating others to use the bigger space who can afford. Also the tax in effect curtails the spending capacity of people.

He says:

 “Bedroom Tax will affect from the individual person up to national level.”

The company has a data base of lots of people who wish to move houses with lesser number of bedrooms. Also, it has the details of tenants and people without housing benefits. On the issue of shortage of smaller properties in Birmingham, if private landlords are given offer, the same can be resolved.

Following are the housing beneficiaries: An unemployed and less than 25 year will get 220 pounds per month. For such persons, if they are above 40 years, 400 pounds will be given towards payments including bedroom allowance. A family with two children will get two bed room allowances. If they are in three bed room house, either they can move to a smaller house or pay the tax.

On the business prospects of the company, Mr. Singh was of the view that the first time buyers will find it difficult to buy a house. It is a good time for letting agencies all over the UK.

In Erdington, most houses were built long back in the years 1920s and 1930s, mostly with three bedrooms. Also, the houses built in 1950s and 1960s were also mostly three bedrooms ones. While the majority of present families are eligible for two bed room allowances only, the people of Erdington are the most affected.

The present situation of shortage of small houses and other issues can be resolved by the council, provided the private landlords are encouraged under some specific schemes, like assuring to take them for a period of five to ten years contract. Then the present situation will melt down to normal in a period of two years.

The below link would help to calculate the number of Bedrooms required in accordance with the number of family members in different age groups from April 1st:


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