Housing Benefit Fails To Cover Rent In Nearly All Of England’s Council Areas

Local Housing Allowance payments are too small to cover average rent almost everywhere in England, analysts for youth homelessness charity Centrepoint have found. In 243 of the 247 local authorities where rent cost data was available, the lowest tier of housing benefit is not enough to pay for a room in a shared house – forcing young people to choose between rent and food. And in more than a third of council areas, the amount of Universal Credit paid to under-25s was at least £100 below the price of rent per month. Read more on the Big Issue website.

https://www.bigissue.com/latest/housing-benefit-fails-to-cover-rent-in-nearly-all-of-englands-council-areas/

Rents: Coronavirus – Parliamentary Written Answer

Mr Barry Sheerman: To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has made an assessment of the feasibility of introducing a ban on rent increases for (a) social and (b) private rented housing for the duration of the covid-19 outbreak. 

Christopher Pincher: The Government have no plans to ban rent increases during the COVID-19 outbreak as we have already announced extensive measures to protect renters affected by coronavirus. All tenants remain liable for their rent and those who can afford to should continue to pay it. At the end of this period, if arrears have built up, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account the tenants’ individual circumstances. For tenants in social housing, landlords will continue to work closely with residents to help them manage their rent and ensure they can access all benefits they are entitled to.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-03-23/33423

‘Rip-Off Rents’ Forcing Families Into Poverty, Warns Labour

Labour has condemned “rip-off rents” it says are driving more families into poverty. It comes after figures revealed a 150% increase in the number of youngsters living in severe poverty in the private rented sector. There were 50,000 children recorded as falling into this category over the period 2015-16 to 2017-18, Scottish Government data shows, up from 20,000 a decade before. Households are classed as being in severe poverty if they have less than 50% of the UK median income to live on, after housing costs have been met. Read more on the Express & Star website.

https://www.expressandstar.com/news/uk-news/2019/04/10/rip-off-rents-forcing-families-into-poverty-warns-labour/

Families In Rural Areas Are Spending Nearly A Third Of Their Income On Rent

Families in rural areas are spending nearly a third of their income on rent, research by the Institute of Public Policy Research (IPPR) has revealed. In a report to mark Rural Housing Week the IPPR found there is an affordability “crisis” in rural areas where the average house price is £320,700, more than £87,000 higher than the urban average outside of London. The IPPR analysis also found the population in rural areas is set to age rapidly over the next two decades. Between 2014 and 2038, the working-age population in rural areas is projected to decline by 75,000 people while the population aged over 65 will grow by around 1.5 million. Read more on the IPPR website.

https://www.ippr.org/research/publications/a-new-rural-settlement

Housing Association Rents Fall By 1.3% In 2016/17

Housing association rents in England have dropped by 1.3% on average in the first year of rent cutting, statistics from the Homes and Communities Agency (HCA) have revealed. The social housing regulator’s Statistical Data Return showed that the average housing association rent fell from £97.84 a week to £96.61. There were fairly wide regional variations, with falls of 1.8% in Yorkshire and the Humber contrasting with falls of just 0.9% in both the East and West Midlands. Read more on the HCA website.

Rents Soar Well Above Wages

Rents in England have soared at a rate well above earnings, leaving renters struggling to cope, analysis by the Chartered Institute of Housing (CIH) shows. The CIH compared Office for National Statistics (ONS) data on rent rises between May 2011 and 2017 with data on rising wages from the Bank of England over the same period. It showed wages had risen by 10.4% across England, well below the 14.6% growth in rents. The worst affected area was London, where rents have soared 21.6% compared with wage growth of just 6.3%. Read more on Inside Housing.

Low-Paid Must Cover Rent By Working Equivalent Of Morning Per Day

Low-paid workers are slogging for the equivalent of a morning per day just to cover the cost of their rent, according to Shelter. The housing charity's analysis of Office for National Statistics (ONS) earnings figures suggests people in this income group in the UK would have to work for 15 hours of their working week just to cover their rent costs - equating to a morning a day. It said that with private rents "sky high", full-time workers on a low wage face shelling out 44% of their income to live in a typical one-bedroom home. People in this group tend to earn between £16,000 and £23,000 a year. Read more on the Belfast Telegraph website.

Councils Warn Lower Benefit Cap Putting Pressure On DHP Budgets

A number of Scottish councils have warned they may not be able to afford the full cost of Discretionary Housing Payments to cover tenants’ rent in the future because of the new lower benefit cap. Five Scottish councils said the lower benefit cap of £20,000 currently being rolled out across Scotland will add pressure to their DHP budgets. Midlothian Council said due to “funding constraints” within the Discretionary Housing Payment (DHP) budget and the increased number of cases “we are not in a position to award DHPs in full for all cases affected by the benefit cap”. Read more on Inside Housing.

Rents In London Outpaced By The Rest Of The Country

Rents in London have grown at a much slower rate than in the rest of the country during "a year of unprecedented change faced by private landlords". Homelet, which carried out the research, found that rents in the capital have increased by just 1.6pc in the 12 months to November. This was the same rate as the East Midlands, and lower than every other region. On a monthly basis, rents in London fell by 1.4pc in November, bringing the average rent to £1,521 per month. The rate of annual growth of rents in the capital has been slowing for the last five months, and have hit an affordability threshold. Read more on the Daily Telegraph website.

Chancellor Urged To Build 80,000 Affordable Homes A Year

The Chancellor should invest in a scheme that could deliver 80,000 affordable homes a year for ‘just managing’ families in the Autumn Statement. As the UK prepares to leave the EU, JRF is also calling on the Chancellor to end the freeze on working-age benefits to help households cope with the rising cost of goods and services. The Government has said its priority will be supporting families on low incomes. JRF’s submission looks at four ways they could support that goal on November 23. A Housing White Paper is expected to be published at the same time. JRF recommends the Government invest £1.1 billion extra a year in affordable housing through a scheme called Living Rents, which links housing association and local authority rents to local wages, making them affordable to people earning the National Living Wage. Read more on the Joseph Rowntree Foundation website.

Gap Widens Between LHA And Rent Costs

Private tenants face a growing gap between help with housing costs and rent. Analysis from the Chartered Institute of Housing (CIH) has found tenants face an increasingly widening gap between the Local Housing Allowance (LHA) they receive to help with their housing costs and the actual rent they pay. The research found that in some areas of the UK, people are only able to afford to rent in the bottom 5-10% of the private rented sector (PRS) market. However, the LHA rates were originally intended to ensure that people could access 30% of the market. The situation is set to worsen as LHA rates freeze for four years from the end of April 2016. Read more on 24dash.

Cameron Has 'Earned £500,000 Renting Out His Home Since Becoming PM'

David Cameron has come under fire for saying he worries about his children being able to afford a home after it was revealed he is believed to have earned £500,000 in rent during his time as Prime Minister. His comments over his children's future have now been slammed by opposition politicians. Shadow housing minister John Healey said: 'If he thinks his kids have a problem buying a home, he should take a moment to think about what life is like for everyone else. Cameron and Osborne have shown no understanding of the housing pressures facing millions.' It comes as a Conservative housing bill is currently being debated in Parliament that would end life tenancies for council house residents and sell off a large swathe of social housing. Developers would then be allowed to build flats worth up to £450,000 instead of new social housing. Read more on the Daily Mail website.

Higher Rents And Continued Lack Of Supply Set To Dominate 2016

Residential rents are set to go up in 2016 and in the home buying market there is likely to be a growing struggle for those seeking to get on the housing market, according to a joint report from agents. According to the Association of Residential Letting Agents (ARLA) there are various pieces of legislation coming into play in 2016 which will result in increased compliance costs for landlords, and as a result push up rents for tenants. ‘We urge the Government to re-think its proposals around reducing Mortgage Interest Relief, scrapping the Wear and Tear Allowance and hiking up Stamp Duty by 3% on buy to let properties,’ said David Cox, ARLA managing director. Read more on the Property Wire website.

Extending Right To Buy To Cost £6bn By 2020

Extending the Right to Buy to housing association tenants will cost £6 billion over the next four years as almost 100,000 households take up the offer. It is forecast that around 24,000 housing association tenants a year will buy their home with an average discount of £63,271 under the Right to Buy extension - the discount would cost £1.5 billion a year. The Local Government Association (LGA) is warning that the offer must not be funded by forcing councils to sell-off their social housing, which would drive up rents and the housing benefit bill and lower the capacity of councils to build more homes and tackle waiting lists. It is crucial that councils are able to retain 100 per cent of receipts from the sale of any council homes to reinvest in the desperately needed homes across the country. Read more on the LGA website.

Tenants in England Spend Half Their Pay on Rent

Rents in England are almost half of tenants’ average take-home pay, according to an official report on the state of the country’s housing. Figures in the latest English Housing Survey show that tenants paid an average of 47% of their net income in rent, while those who had taken out a mortgage faced repayments equal to 23% of their earnings after tax.  The report also showed that once housing benefit is stripped out of income, average rents are now more than half of average gross pay. Across England, private renters paid 43% of the average gross income of the main householder and partner including housing benefit in rent, but without including the state payments tenants faced costs that were typically 52% of their earnings. Download the figures from the CLG website.

Rent in London Eats Up Two Thirds of Tenants' Incomes

Struggling private tenants in London are spending almost half their gross income on rent. In some boroughs rent swallows up more than two thirds of income, pushing leases on flats and houses even further out of the reach of ordinary Londoners. Rent takes up more than half of pre-tax income in 13 of the capital’s 32 boroughs. Even in the two most affordable areas — Bexley and Bromley — renters spend almost a third of their income on their home. The figures are before tax is deducted, meaning Londoners are spending significantly more than half of their take-home pay on rent. Read more on the Evening Standard website.

Concern over Welfare Payment Slowdown

The amount of time landlords have been waiting to receive rent under universal credit has jumped because of government delays in processing payments. Social landlords can apply for benefit for housing costs to be paid directly to them, instead of to the household, if tenants are in two months of arrears under alternative payment arrangements (APAs). It is understood the average time between posting an APA application and receiving confirmation of payment increased from 19 days in October to 24 days in November.  The delay will re-ignite fears that direct payment will make it harder for social landlords to collect rent, undermining their income streams. Read more on Inside Housing.

Millions in UK Fear Missing Rent or Mortgage Payments

Over three million people in the UK are living in fear of being unable to meet their rent or mortgage payments this January. Research by housing charity Shelter and pollsters YouGov found that 59% of rent or mortgage payers across the country are already struggling to keep up with their housing costs. Shelter is warning that ignoring money worries rather than seeking advice could lead to people’s homes being put at risk. More than a quarter (26%) of those polled said they would feel too ashamed to ask for help if struggling with housing payments. Read more on 24dash.

Rental Costs to Thrash House Prices In 2015

London’s rental costs are predicted to swell by 10% over the next year, far outstripping houses prices which are expected to rise by a more meagre 3-5%. According to estate agent Marsh & Parsons, prime London house price increases will slow in 2015, compared to the 11.4% rise witnessed over 2014. Annual growth is forecast to be strongest (5%) in outer prime London, where typical house prices are 25% lower than across prime London as a whole, fuelling higher demand. But in the most expensive prime central areas of the capital, prices will climb by 3%. Read more on 24dash.

Tenants Forced To Spend 40% of Income on Rent

Tenants are having to spend two-fifths of their incomes on rent, reveals a new government report. According to this year’s English Housing Survey, private renters in England are spending 40 per cent of their salaries to keep a roof over their heads. Tenants’ rights campaign Generation Rent director Alex Hilton said: “Renters spend two days every week working to pay off their landlord’s mortgage.” The group denounced the current state of affairs as “exploitation” and a “financial thumbscrew” for millions of people who are stuck without alternatives. Read more on the Morning Star website.