Affordable Rent to Drive up Benefit Bill

Research has found affordable rent will make homes unaffordable for more than half of households in some parts of London and drive up the housing benefit bill. Housing association East Thames has assessed how the introduction of affordable rent, which will allow social landlords to let some properties at up to 80 per cent of market rent, will affect the six London boroughs in which it works. In Newham, the area where East Thames has the largest presence, the increase between social rent and affordable rent is between 25 and 143 per cent. If rents were to increase at this level, 65.1 per cent of households in the borough would be unable to afford three or four bedroom properties without housing benefit, if affordability is defined as paying no more than 45 per cent of income on housing. Thirty two per cent of households would be unable to afford a one bedroom home, and 44.5 per cent would be unable to afford a two bedroom property. Read more on Inside Housing.