‘Economic recovery' placing many onto housing benefit

  • Whilst some areas of England are showing signs of economic recovery, many have found themselves having to ask for housing benefit.

    A report by the National Housing Federation's  named ‘Home Truths' has found that around 310 people a day are having to go on housing benefit due to unemployment or low wages. Block Of Flats

    The NHF says that taxpayers have picked up a tab of £12.1 billion spent on housing benefit for working people since 2009 due to the lack of homes in areas of growth over many successive years, reports 24dash.

    The NHF also believe that by 2020 house prices will have risen to the point of an entire generation being locked out of home ownership, forcing them to rent for life. However rents are also set to rise by an average of 39% by 2020, meaning further financial consequences for the tax payer.

    The NHF wants more homes to be built in areas that are growing economically and at the right prices which people are able to afford. In areas that aren't currently growing, they believe Local Enterprise Partnerships need to work with housing associations and other partners to revitalise struggling communities, create jobs and invest in social enterprise.

    David Orr, NHF chief executive, said: "We hear a lot about ‘making work pay', but a decent job won't even cover the cost of a home in England. Billions of pounds of taxpayers' money is wasted, lining the pockets of private landlords, when it could be better spent building more homes people can afford. Relying on the private rented sector so heavily is a costly sticking plaster rather than a solution. In towns and cities pulling away from the recession the dysfunctional housing market is burning the fingers of many people. Hard-working families are spending more and more of their income on a home and many could be forced to move - away from jobs, schools and relatives. We need to address the problems of the housing market now, before another generation is left locked out and reliant on taxpayers to keep the roof over their head."

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    Image source: http://www.sxc.hu/photo/1383113

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