Welfare Reforms Threaten House Building

The g15, which comprises the 15 biggest housing associations in London, has raised fears that an unintended consequence of welfare reform could be that fewer new affordable homes are built.  Up to 1,200 new homes a year nationally could be at risk as housing associations become more cautious in response to concerns over increased rent arrears and bad debts. g15 anticipates that rent collection costs could rise by as much as £600,000 a year for each organisation as low income tenants struggle to pay their rent.  Any increase in rent arrears and reduction in income will reduce housing associations’ financial capacity to build the homes that are urgently needed in the capital.  Read more on the g15 website.