Housing Money Wasted 'Propping Up Rents'

Taxpayers' money is being wasted on "propping up rents" in a "failing housing market", a report says. The National Housing Federation report highlights how money spent on housing benefit rose from £16.6bn in the mid-1990s to £25.1bn in 2015-16. It added that since 2011, no government money has been made available to build homes in England for low paid people to rent. The government said building more homes was its absolute priority. Read more on the NHF website.

Universal Credit Sends Rent Arrears Soaring

Ministers are coming under intense pressure to put the brakes on the government’s flagship welfare reform programme, following damning new evidence that it is leaving thousands of low-paid workers unable to pay their rent and at risk of homelessness. Figures show that half of all council tenants across 105 local authorities who receive the housing element of universal credit are at least a month behind on their rent, with 30% two months behind. The Peabody Group said the rate of rent arrears among its tenants on universal credit was three times greater than those not on the new benefit. It said the average level of arrears for those on universal credit was £1,400 per household. Read more on the Observer website.

Low-Paid Must Cover Rent By Working Equivalent Of Morning Per Day

Low-paid workers are slogging for the equivalent of a morning per day just to cover the cost of their rent, according to Shelter. The housing charity's analysis of Office for National Statistics (ONS) earnings figures suggests people in this income group in the UK would have to work for 15 hours of their working week just to cover their rent costs - equating to a morning a day. It said that with private rents "sky high", full-time workers on a low wage face shelling out 44% of their income to live in a typical one-bedroom home. People in this group tend to earn between £16,000 and £23,000 a year. Read more on the Belfast Telegraph website.

Thinktank Calls For 75,000 "Living Rent" Homes A Year

The Government should build 75,000 homes a year aimed at low paid workers, a think tank has argued. Renewal said the Rent to Buy model should be scaled up and rents reduced to allow people to save for a deposit.  Living Rents would be set at no more than one-third of the average low income in an area. Properties would have a five to 10-year tenancy as a minimum to provide "security and stability, while still encouraging mobility and efficiency in the use of stock. After two years, tenants would have the option of buying their home at a discount similar to those offered under Right to Buy. This would be facilitated through an extension of Help to Buy-style equity loans. Read more on the Housing Excellence website.