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More British landlords now rent to people on housing benefit with amounts increasing from £4.6 billion in 2006 to £9.3 billion last year, new research shows. According to the study from the National Housing Federation the reason are twofold. Firstly a 42% rise in the overall number of private renters receiving housing benefit since 2008 and secondly the fact that claims in the private rented sector (PRS) are much higher than in the non-profit housing association sector. The research says that it costs £21 a week more to house a family in a PRS home than in a social home at £110 overall in comparison to £89 and points out that over a year this is an additional £1,000 per family being spent at £5,705 in the PRS compared to £4,638 in the social rented sector. In London, the contrast is even starker with PRS payments at £64 per week more than to those in social homes, adding up to £3,300 more each year, according to the NHF which represents independent non-profit housing associations. It says that the lack of affordable housing available means that a wider group of people need housing benefit. Nearly half, 47%, of all families claim housing benefit in the PRS sector are in work, almost double the proportion it was six years ago at 26%. Housing benefit recipients renting privately now earned an average £4,000 more than on six years ago. The NHF believes that the increase in taxpayer’s money being spent on housing benefit would have been better allocated to building more affordable homes. ‘It is madness to spend £9 billion of taxpayers’ money lining the pockets of private landlords, rather than investing in affordable homes,’ said David Orr, NHF chief executive. ‘Housing associations want to build the homes nation needs. By loosening restrictions on existing funding, the Government can free up housing associations to build more affordable housing at better value to the taxpayer and directly address the housing crisis,’ he added. But the National Landlords Association (NLA) said it should not criticise PRS landlords and pointed out that the number letting homes to housing benefit recipients is now falling. ‘Housing benefit is not a subsidy to landlords; it’s a support for tenants to ensure they can pay for their housing. However, the proportion of landlords who let to tenants in receipt of housing benefit has halved over the last five years as benefit levels have not kept up with rents,’ said , Richard Lambert, NLA chief executive officer. ‘The private rented sector has grown as the market responds to the increasing demand for homes, particularly from a growing proportion of tenants whom the social sector and housing associations simply are not able to support in the current circumstances,’ he explained. ‘The private rented sector plays a significant role in providing much needed homes for tenants. What we should all be talking about is the failure of successive governments to adequately allocate its housing budget and to incentivise… Taylor Scott International
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