Government Policies Contribute To Housing Inequality

Welfare and immigration policies are contributing to sharply unequal access to affordable housing among Black, Asian and minority ethnic communities, a report by the Joseph Rowntree Foundation (JRF) has found. Analysis concluded that a quarter of Black, Asian and minority ethnic workers, excluding those of Indian origin, are paying unaffordable housing costs compared with 10% of white workers. The study also found that the issue is a UK-wide problem not only confined to the capital, with two in 10 Black, Asian and minority ethnic households living in unaffordable housing across the country. Download the briefing from the JRF website.

https://www.jrf.org.uk/file/58774/download?token=Obw_6Nkv&filetype=briefing 

Home Ownership Unaffordable Despite 95% Mortgages

 The government’s scheme to turn generation rent into generation buy will not help single thirtysomethings get on the property ladder in much of England and Wales. The mortgage guarantee scheme will support banks and building societies to offer 95% loans, meaning that buyers only have to raise 5% themselves. Single buyers in their 30s on the UK median wage will still be locked out of buying a home in about half of local authority areas. Although two salaries will make it easier to raise a large mortgage, those on the UK median earnings for that age group will be unable to afford to buy a home in all of London and parts of the south and east. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2021/apr/19/home-ownership-unaffordable-despite-95-mortgages-analysis-shows

Johnson Accused Of Betraying Homeowners Over Cladding Crisis

 Boris Johnson stands accused of betraying homeowners after ministers unveiled a £3.5bn fund to fix dangerous cladding which risks leaving an estimated half a million people still facing financial difficulties. The prime minister faced a backlash from his own MPs after the housing secretary, Robert Jenrick, announced that homeowners in blocks less than 18 metres tall would be left out of a new cladding crisis fund. They will be offered long-term low-interest loans instead, which some said risked pushing them into negative equity. Last week Johnson told parliament: “No leaseholder should have to pay for the unaffordable costs of fixing safety defects that they didn’t cause and are no fault of their own.” Read more on the Guardian website.

https://www.theguardian.com/society/2021/feb/10/boris-johnson-accused-of-betraying-homeowners-over-cladding-crisis

Discounted Housing Scheme Out Of Reach Of Most First-Time Buyers

A high-profile housing scheme offering first-time buyers discounted homes will be unaffordable to the vast majority of workers on average or low incomes. The First Homes scheme has been described by ministers as “genuinely life-changing for people all over the country”. However, new analysis suggests it will be out of the reach of average earners in 96% of England. Research by Shelter found that, in almost all parts of England, someone on an average salary or lower could not afford to buy one of these new-build homes. It also shows that almost two-thirds (63%) of private renters in England have no savings at all for a deposit. Read more on the Observer website.

https://www.theguardian.com/society/2020/feb/16/first-homes-scheme-unaffordable-most-buyers

Private Renters Spending £11bn More Than They Can Afford On Rent

England’s private renters are paying out £11 billion more a year on rent than they can afford – or an average of £425 a month per household among those who are overspending – new research by Shelter shows. Using the widely accepted measure of affordability which says rent should take up no more than 30% of household income, the charity calculated the overspend by comparing government data on private rents and incomes. Hugely unaffordable rents are dominating daily life for millions of people, forcing them to rely on costly credit cards or borrow what they can from family and friends. Read more on 24housing.

https://www.24housing.co.uk/news/private-renters-spending-11bn-more-than-they-can-afford-on-rent/

Nine In 10 Homes Unaffordable To Families On Housing Benefit

Fewer than 10% of homes are affordable to families needing housing benefit in one third of areas across Britain, according to new analysis. The findings come as a new poll from Crisis and Joseph Rowntree Foundation reveals nearly three quarters (73%) of the public agree that increasing housing benefit so people don’t lose their homes in the first place is better than spending on emergency accommodation. According to reports, staying in emergency or unsuitable temporary accommodation, such as hostels and B&BS, affects 61,000 out of the 170,000 families and individuals experiencing the worst forms of homelessness in Great Britain. Read more on 24housing.

https://www.24housing.co.uk/news/nine-in-10-homes-unaffordable-to-families-on-housing-benefit/

Nine In 10 Homes Unaffordable For Families

The benefit freeze is pushing low income families to the brink, with more than nine in ten homes for private rent (94%) too expensive for those on housing benefit. And new NHF research reveals two thirds of these families (65%) are in work. Now, NHF is calling on the government to:

·         End the freeze and increase LHA payments so that they cover at least the bottom 30% of private rent homes in any local area

·         Commit to investing £12.8bn annually in building new social housing, so that fewer families have to depend on unaffordable and insecure privately rented accommodation

Read more on 24housing.

https://www.24housing.co.uk/news/housing-benefit-freeze-means-9-in-10-homes-unaffordable-for-families/

Over Eight Million People In England ‘Directly Hit’ By Housing Crisis

More than eight million people in England – around one in seven – are living in unaffordable, insecure or unsuitable homes, according to a new report by the National Housing Federation (NHF). In the first of its kind, the State of the Nation report captures exactly how many people are hit by different aspects of the housing crisis, including high house prices and rents, unsuitable or poor-quality homes, and the overall shortage of new homes. As outlined, more than 3.6 million people are living in overcrowded homes, while 2.5 million people can’t afford their rent or mortgage. Download a summary of the report from the NHF website.

http://s3-eu-west-1.amazonaws.com/img.housing.org.uk/NHF_Briefing_How_many_people_need_a_social_rented_home_FINAL.pdf

Report Reveals ‘Unique Challenges’ Faced By Older Renters

The UK’s older private renters face distinct challenges which could “worsen” the nation’s housing crisis, according to new research. The Beyond Generation report specifically looked at renters aged 35-54 and their experiences of private renting. As well as encountering similar issues as younger renters – unaffordable rents, insecure housing, and poor-quality properties – older renters also experienced distinct issues, such as the impact on family life, challenges in adapting properties for age-related health and mobility impairments, and being aged out of a mortgage. The report coincides with figures published by the DWP in 2019 that revealed the private rented sector in the UK now comprises more than 4.5 million households. Read more on 24housing.

https://www.24housing.co.uk/news/report-reveals-unique-challenges-faced-by-older-renters/

Housing ‘Unaffordable For Women’ In Every English Region

Rising house prices and the gender pay gap mean there is no English region where a single woman on median earnings can afford to rent or buy an averagely priced house, a new report has revealed. Released by the Women’s Budget Group and Women’s Housing Forum, the report finds that, across England, average rents take 43% of women’s median earnings and 28% of men’s. That means there is no region in England where the average home to rent is affordable for a woman on median earnings; while the average home to rent is affordable for men on median earnings in every region except London and the South East. Read more on 24housing.

https://www.24housing.co.uk/news/housing-unaffordable-for-women-in-every-english-region/

Benefit Cuts 'Have Made Private Renting Unaffordable'

Renting privately across most of England has become unaffordable for people on benefits, housing charities have warned, with people in some areas short of at least £100 a month. Analysis by the BBC has shown the gap between rent and Local Housing Allowance (LHA) more than doubled across most of the country since 2016. Shelter said people were having to "choose between food and rent". The government said it had targeted extra funding at low-income households. Working age benefits were frozen for four years in 2016, while rents have continued to rise. Read more on the BBC website.

https://www.bbc.co.uk/news/uk-england-48038833

Two-Thirds Of Councils Say They Can’t Afford To Comply With Homelessness Law

The Homelessness Reduction Act, in operation for the past 12 months, is potentially the greatest piece of homelessness legislation for 40 years in England, according to Southwark council in south London. The Labour-run council pioneered the government’s new flagship act, and is upbeat about it. While homelessness went up in the borough last year, as it did across London, the rise was less steep than expected: 8.6% for families placed in temporary accommodation and a similarly small increase for rough sleepers. At the same time, there was also a 50% increase in the number of people the council helped to stay in their home. Read more on the Guardian website.

https://www.theguardian.com/society/2019/apr/10/homeless-reduction-act-one-year-on

Buying House In UK City At Least Affordable Level Since 2007

City living is at its least affordable levels for home buyers since 2007, a report suggests. The average house price in a UK city in 2018 equated to 7.2 times average annual earnings – making the cost of buying a home the least affordable since 2007 when buyers had to fork out 7.5 times their income typically, Lloyds Bank found. The average home in a city cost £248,233 while average full-time earnings stood at £34,366. Lloyds found seven cities where the average house price tops 10 times earnings -Oxford, Chichester, Winchester, Truro, London, Bath and Cambridge. Read more on the Belfast Telegraph website.

https://www.belfasttelegraph.co.uk/news/northern-ireland/buying-house-in-uk-city-at-least-affordable-level-since-2007-study-suggests-37775722.html

Supported Housing Tenants ‘Discouraged From Finding Work’

Mayday Trust has revealed those living in supported housing are being discouraged from finding work out of fears of unaffordable rent prices. Its report, titled ‘Wisdom Behind Doors’, is based on 80+ conversations with people in temporary accommodation and further highlights the situations in which supported housing has become a barrier to overcome. Respondents also explained how increasing rent costs meant they would have to find alternative accommodation, even after they had secured a job. Mayday Trust work with people from all backgrounds and provides accommodation in challenging circumstances. Download the report from the Mayday Trust website.

https://www.maydaytrust.org.uk/Handlers/Download.ashx?IDMF=ace79d39-e431-4612-9aa4-6847560b349d

Young People With Deposits Still Cannot Buy Homes

About 40% of young adults cannot afford to buy one of the cheapest homes in their area even with a 10% deposit, according to a new research. The Institute for Fiscal Studies said house prices in England have risen by 173% over two decades. But average pay for 25-34 year-olds has grown by just 19% over the same period. In 1996, 93% of those with a deposit who borrowed four and a half times their salary could purchase a home but that fell to 61% in 2016. The IFS also said that higher rental costs - up from an average £140 a week to £200 a week in England - have "reduced the purchasing power of young adults' incomes" and made it harder to save for a deposit. Read more on the BBC website.

https://www.bbc.co.uk/news/business-45776289

Benefit Freeze Puts Private Renting Out Of Reach For Low-Income Tenants

Even the lowest private rents are now out of reach for people on low incomes – putting thousands at increased risk of homelessness. Research from the Chartered Institute of Housing (CIH) showed that more than 90 per cent of Local Housing Allowance rates across Great Britain now fail to cover the cheapest rents, as they were originally designed to do. LHA rates were frozen for four years in 2016 and CIH is warning that they have fallen so far behind even the cheapest rents that private renting has become unaffordable for most low income tenants – putting them at risk of homelessness as they are forced to choose between basic living expenses and paying the shortfall. The organisation is calling on the government to review the policy and to end the freeze immediately. Read more on the CIH website.

http://www.cih.org/news-article/display/vpathDCR/templatedata/cih/news-article/data/Benefit_freeze_puts_private_renting_out_of_reach_for_low-income_tenants_and_risks_fuelling_homelessness

The Tories Are Offering A 'New Deal' On Housing... Without A Deal

In the last 24 hours, housing professionals and charities like Shelter and the Joseph Rowntree Foundation have joined Labour in responding to the Government’s Green Paper on social housing by asking ‘where exactly is the social housing?’. After months of consultation and preparation, the best this Government can offer is that those already in social housing can compare their landlord to other landlords. While important, it doesn’t even scratch the surface of doing what needs to be done to start resolving the crisis for the 1.2million people parked on council waiting lists and 1.7million in unaffordable private rental properties – which is to build more council and social homes. Read more on the Huff Post website.

https://www.huffingtonpost.co.uk/entry/hosuing-new-deal_uk_5b743435e4b02b415d746d8c

CPRE Warning As 460,000 Homes To Be Built On Green Belt Land

The green belt remains under severe pressure, despite government commitments to its protection, according to a new report from the Campaign to Protect Rural England (CPRE). The report highlights that there are currently 460,000 homes being planned to be built on land that will soon be released from the green belt. CPRE add that of these 460,000 homes, the percentage of affordable homes will be just 22%. Last year 72% of homes built on greenfield land within the green belt were unaffordable by the government’s definition. CPRE add that there is currently enough brownfield land to build a million homes and are calling on the government to pursue a “brownfield first” approach to development. Download the report from the CPRE website.

https://www.cpre.org.uk/resources/housing-and-planning/green-belts/item/download/5486

Government Lays Down Planning Rules For Future Housing

Councils get an easier challenge to poor quality and unattractive development and communities a greater voice as to how developments should look and feel under new government guidance. To help tackle unaffordable house prices in many areas across the country, the framework sets out a new way for councils to calculate the housing need of their local community-  including different forms of housing, such as retirement homes. The LGA has described it as “hugely disappointing” that the rules didn’t reflect its concerns over nationally set housing targets. Read more on 24housing.

https://www.24housing.co.uk/news/government-lays-down-planning-rules-for-future-housing/

More Than 600 'Affordable Homes' Built In Merseyside Were NOT Affordable

More than 600 "affordable" homes built in Merseyside in the last three years weren't actually affordable. Data analysed by the Press Association's Radar service shows that Homes England, a government body responsible for building affordable housing, has built some homes which don't meet the guidelines needed to be classed as affordable. Liverpool had the highest number of homes which missed the guidelines of being 80% of market value for buyers, with 258 homes not meeting the criteria. Between 70% and 85% of the homes built in Merseyside by Homes England between April 2015 and March 2018 did meet the guidelines. Read more on the Liverpool Echo website.

https://www.liverpoolecho.co.uk/news/liverpool-news/more-600-affordable-homes-built-14847498