Full Impact of Housing Benefit Reforms Yet to Come
- 15 May
A report shows that the effects of the housing benefit reforms will continue to worsen for private sector claimants.
London has been hardest hit so far for private tenants who claim the benefit, but other areas are still yet to feel the effect.
Research released by the Department for Work and Pensions (DWP) shows the effect that the reforms to housing benefits have had across the United Kingdom.
The research has looked at the impact of changes to local housing allowance (LHA) in the private rented sector, and has shown that the impact has been "geographically limited" and has hit the capital the hardest so far.
Analysis of the reduction of LHA shows that 94% of the gap falls to tenants to meet through increased shortfalls, while 6% of the gap is met by landlords (through reducing rents).
However, the early effects of LHA reforms, which began in April 2011, had also been fairly limited in terms of displacement, additional evictions or more cases of homelessness.
The report showed that:
- The anticipated displacement of LHA households has not yet happened
- It is falling to tenants to fill the benefit gap in the majority of cases (94%) rather than landlords through reducing rents (6%)
- In 120 council areas, reductions to housing benefit have been £5 or less
- The extra £130 million of support from DWP to councils to help tenants has "blunted the impacts in London and tighter PRS markets elsewhere.
The main conclusion of the report is that there may be informal arrangements whereby landlords ‘turn a blind eye' to tenants who fail to meet the full rent payment, at least for the remainder of their current tenancy, and it may take time for market rents to adjust to the changes. This is also swayed by other changes to the housing sector that would encourage landlords to find ways to keep their tenants.
Further research in to the development of changes will show the full effect, which is likely to have more changes as current tenancy contracts expire.
Minister for Welfare Reform Lord Freud, said:
Reform of housing benefit in the private sector was absolutely necessary to control a system that saw spending double over a decade to more than £20 billion a year.
However, it is also necessary to monitor and follow the reforms to help us build and learn for future reforms.
- 02 Nov
THE ONS PLANS TO CHANGE THEIR DECISION TO MAKE HOUSING ASSOCIATIONS PUBLIC BODIES
According to reports by 24 Housing, the ONS said the following:Gavin Smart, Chartered Institute of Housing's deputy chief executive also said:"Although we have been expecting this decision for some...
- 30 Aug
RECENT ANALYSIS FINDS THAT THE HELP TO BUY SCHEME HAS ADDED TO THE INFLATION OF HOUSE PRICES
The analysis of the Help to Buy Scheme revealed the following:The chief executive of Paradigm Housing Group, Matthew Bailes, said:" ... clearly, it worked well for developers, and for providers, it...
- 22 Aug
A NORTH WALES COUNCIL REVEALED THEIR WAITING LIST FOR NEW HOMES HAS REACHED BREAKING POINT
The north Wales Council revealed their waiting list for new homes has reached "breaking point".According to Clare Budden, Flintshire Council's community enterprise chief officer said:"There are...
- 17 Aug
HOMELESSNESS POLICY IS UNDER REVIEW IN A NORTHAMPTONSHIRE COUNCIL
Kettering Borough Council has amended its letters to homeless residents to let them know of their right to request a temporary accommodation review.According to an ombudsman, Michael King:"People in...
- 15 Aug
FINANCIAL CONSTRAINTS HAVE CAUSED THE CLOSURE OF MANY CHILDREN AND YOUTH CENTRES
Local Government Association (LGA) made the following findings:Chair of the LGA's children and young people board, Richard Watts, said: "The reality is that services for the care and protection of...
- 11 Aug
RESIDENTS OF BUILDINGS IN LEDBURY ESTATE, SOUTHWARK, SOUTH LONDON WILL BE MOVED OUT TEMPORARILY
The buildings in Ledbury Estate in Southwark have been constructed in a similar way to Ronan Point, a tower block in Newham which collapsed in 1968 as a result of a gas explosion, killing three. An...
- 10 Aug
THERE IS A DECLINE IN THE HOUSING MARKET IN LONDON AND OTHER PARTS OF THE SOUTH EAST OF ENGLAND
The Royal Institution of Chartered Surveyors (Rics) made the following findings:Chief Economist at Rics, Simon Rubinsohn:"Sales activity in the housing market has been slipping in the recent month...
- 07 Aug
REPORT FINDS THAT PEOPLE ARE INTENSELY SUFFERING FROM LACK OF AFFORDABLE HOMES IN SCOTLAND
According to the report by "Shelter":Shelter's deputy director, Alison Watson, said:"This report shows the disproportionate impact of Scotland's housing crisis on young people and private renters who...
- 02 Aug
NEW REPORT BY THE PUBLIC ACCOUNT COMMITTEE IN WALES COMMENDS HOUSING ASSOCIATIONS
The report which was put together after nine months of inquiries stated the following:Nick Ramsey, Chair of the Public Accounts Committee, said:"Generally, we found governance and regulation within...
- 31 Jul
LONDON COUNCIL URGES THE GOVERNMENT TO MAKE MEASURES TO END LETTING FEES FOR PRIVATE RENTERS
The London council say urgent action is needed because the government has not provided "a clear timescale to introduce its own measure", Letting Agent Today, reports.Last year, the government had...
Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "Found the seminar very informative and gave an interesting and full insight into current thinking about the consultation. Michael was a very engaging and knowledgeable presenter and encouraged interaction with the audience which led to further relevant points being shared with the room. I shall certinaly look out for future events!" M.E. - Care Housing Association