Budget: On Housing This Was About As Bad As It Gets

For those interested in a sensible housing policy and supporting the most vulnerable, this budget was about as bad as they get. There are five key elements. First is the decision to freeze the Local Housing Allowance. Already, this is a long way removed from what it actually costs to rent a property in many parts of the country. Shelter predicted that only 6 per cent of England would be affordable to those on housing benefit by 2017; that will now get even more extreme. Secondly, there are significant reductions in housing benefit entitlements -  the household benefit cap, the withdrawal of the family premium in housing benefit, the ending of housing benefit to those aged between 18 and 21 who are out of work, the restriction of housing benefit entitlement to families with more than two children. Thirdly, rents in the social sector are to reduce by 1 per cent a year, ripping up a ‘ten year’ agreement issued as recently as 2013. Fourth, rents for those earning £30,000 per year (£40,000 in London) will rise to ‘market or near market’ rents. Finally there is practically nothing in the budget which will boost housing supply. Read more on the Left Foot Forward website.