Friday, 1 August 2014

Why Is Housing Policy Such A Mess?

One of the lesser noted aspects of the last few years is a soaring housing benefit bill. The rate of increase has slowed somewhat in the last four years yet the increase is still £4billion or so per annum. This is despite the initiation of policies such as the benefits cap that were intended to reduce the outlay. What on earth is going on?  Government policy is driving people from the socially rented to the ‘affordable rent’ sector- ie to housing with higher rents (up to 80% of market value). At the same time, social house building has been very low. One Government department, the CLG, is increasing rents and cutting housing investment and another one, the DWP, is having to foot the bill. Right to Buy is reducing the stock further without simultaneous house-building. Housing Associations are building up surpluses but, as a glacial sector, they are failing to build at a sufficient rate. Read more on the RSA website.

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