Increasing Numbers of Families in PRS

The number of households with children in the private rented sector has increased by 103 per cent in the past 10 years, according to a report from a research charity.  Families with children in higher income households were the group with the greatest proportional rise in the Building and Social Housing Foundation’s analysis of data from a variety of sources.  The report, Who lives in the private rented sector?, said: ‘The growth in higher income families [in the private rented sector] is indicative of the constrained access to homeownership. Download a copy of the report from the BSHF website.

Minister’s Benefits Remarks Refuted

Housing experts have criticised Grant Shapps over comments he made about housing benefit claimants in the wake of the news Newham Council plans to move hundreds of tenants outside the borough.  The housing minister claimed those on benefits ‘cannot have the same choices as working people’.  But 93 per cent of new claims for housing benefit between January 2010 and December 2011 were made by people in work.  Research showing the vast majority of new claimants are in work was published by the Building and Social Housing Foundation last month. Read more on Inside Housing.

Benefit Reforms Could Halt All Payments

Charities have warned the proposed universal credit system could result in families losing all their benefit payments while one component is re-calculated if a family’s circumstances changed. Carers UK told the work and pensions select committee a family might lose its housing benefit while another part of the overall payment was being calculated. Family Action said the government should keep the conditions on which each benefit is paid ‘separate within the system’. The Building and Social Housing Foundation, also warned a move from paying housing benefit through councils to a national system would mean there was a loss of local knowledge when it came to claims from Gypsy and Traveller groups and hostel residents. Read more on Inside Housing.

'CLG Declined FOI Requests on Impact of Affordable Rent'

Three Government departments, including CLG, have turned down Freedom of Information (FOI) requests from the Building and Social Housing Foundation (BSHF) for data on the impact of Affordable Rent on housing benefit, the research organisation has claimed. From 2013, housing benefit will be absorbed into a Universal Credit, which will replace the welter of means-tested benefits - including housing benefit - with a 'single universal credit'. BSHF says it has made requests to CLG, the DWP and HM Treasury for modelling they had undertaken on the impact of Affordable Rent on Housing Benefit expenditure. It said the departments declined to provide this information, as the policy was still under development. This decision was appealed by BSHF on the grounds that the information was relevant to the DCLG consultation on Social Housing - Local Decisions: A fairer future of social housing, which ends today. BSHF is concerned the policy will increase the dependency on housing benefit. Read more on 24dash.

Affordable Rent Could Add £1bn to Benefit Bill

The government’s plans for a new ‘affordable rent’ tenure could add over £1 billion to the housing benefit bill. In a report to MPs, the Building and Social Housing Foundation warns that the new model, where housing associations charge rents of up to 80 per cent of the market value, will cause the welfare bill to grow at a time when ministers are trying to cut it. The report, submitted as written evidence to the Work and Pensions select committee, said the BSHF’s own modelling suggested additional demand for housing benefit from tenants in affordable rent properties could cumulatively add £390 million to housing benefit spending each year. By the end of the spending review period, this could amount to an increase of £1.56 billion per year. The report said: ‘The government should urgently clarify the relationship between proposals for affordable rent and welfare reform.’ The government plans to save £2.25 billion from the housing benefit bill in 2014/15. Read more on Inside Housing.

38% of Councils in East Mids to 'Keep Housing Targets'

Housing think tank, the Building and Social Housing Foundation (BSHF) has published research on the impact of the abolition of Regional Strategies. Among its findings it found that in the East Midlands, more than one third of local authorities (38 per cent) have stated their intention to keep the housing targets set out in the Regional Strategies. Some of the main findings of the research are:
* Approximately one third of local authorities (32 per cent) in the East Midlands were undecided on their housing targets.
*In the East Midlands, over one third of local authorities (38 per cent) stated their intention to keep the housing targets in the Regional Spatial Strategies.
* Some local authorities responding to the research were struggling to understand the nature and scope of their new responsibilities.
* Local authorities were concerned that they do not have the financial or technical resources to assess local housing need.
Read more on 24dash.

New Report Debunks Myths of 'Out Of Control' Housing Benefit System

A leading housing research charity has published a report which debunks some of the myths that claim that the housing benefit system is out of control. Much has been made in recent weeks of housing benefit rising to exceptional proportions but the evidence, contained in BSHF’s submission to the government’s Spending Review, shows a quite different picture. Specifically the report shows that:
* Housing benefit has remained steady as a proportion of the overall benefits bill for around two decades;
* Nearly 70 percent of the rise in the housing benefit bill in the economic downturn can be attributed to the rise in working-age claimants.
BSHF argues that this is evidence of housing benefit behaving as you would expect – employment falls in a recession and more people need support. Read more findings from the report on the 24dash website.

Housing Benefit and the Emergency Budget

The Building and Social Housing Foundation (BSHF) have published an examination of, and response to, the measures relating to housing benefit, announced in the emergency budget. Housing benefit reforms announced in the emergency budget could have significant financial and social costs for individuals and communities without making savings on public expenditure. The paper reveals major concerns over the housing benefit measures announced in the budget. The paper accepts that there is a clear need for long term reform of housing benefit and the wider system of support with housing costs, but calls into question many of the measures announced in the budget. Download a free copy of this publication from the BSHF website by clicking on the logo below.