Social Renters Most Affected By Coronavirus

The Resolution Foundation says four in five social housing tenants either work in sectors directly hit by the government-imposed lockdown such as hospitality and retail, are unable to work from home, or must care for school-aged children. Only half of homeowners are in similar situations, it added, with the figure 59% for private renters. Staying home to help slow the spread of the virus will also “be particularly challenging” for the UK’s 1.8 million families living in overcrowded conditions – with 13% of social rented households affected compared to 10% of private renters and just 2% of owner-occupiers. Read more on the Resolution Foundation website.

https://www.resolutionfoundation.org/publications/housing-outlook-q2-2020/

Court Possessions Suspended

All court possession orders have been suspended with immediate effect. This affects mortgage holders as well as private and social renters across England and Wales. This will affect cases in the system as well as new cases for at least 90 days, though the timeframe may be extended. A government statement said:  “Landlords will have to give all renters three months’ notice if they intend to seek possession (i.e. serve notice that they want to end the tenancy) – this means the landlord can’t apply to start the court process until after this period. “This extended buffer period will apply in law until 30 September 2020.” Read more on the Property Wire website.

https://www.propertywire.com/news/possessions-suspended

More Social Renters Expect To Buy

More social renters than ever expect to buy a home, the English Housing Survey has revealed. According to the survey 30% of social renters expect to buy a property at some point in the future, compared to 26.8% in 2015/16. This figure has been rising gradually since 2011/12, when it stood at 20.3%. Elsewhere in the survey, figures revealed the growth of the private rented sector (PRS), which now accounts for 20.3% of residents in England. A total of 62.6% of residents own their homes and 17.1% are social renters. Download the headline report from the GovUK website.

https://www.gov.uk/government/statistics/english-housing-survey-2016-to-2017-headline-report

Social Rented Housing – Parliamentary Written Answer

Alex Cunningham:To ask the Secretary of State for Communities and Local Government, whether he plans for the one per cent reduction in social housing rents announced in the Summer Budget 2015 to apply to (a) supported accommodation claimed as specified accommodation under the Housing Benefit and Universal Credit (Supported Accommodation) (Amendment) Regulations 2014 and (b) other hostel accommodation for the single homeless.

Mr Marcus Jones:In order to reduce the Housing Benefit bill, the Government has taken the decision to bring rent increases within the social sector back into line with the private rented sector. But we acknowledge that there may be some circumstances where the rent reduction policy should not apply. In particular, the types of accommodation that are current excepted under the Rent Standard such as specialised supported accommodation are likely to remain excepted. We are considering whether the existing definition is appropriate in light of the revised policy and will be setting out the details in legislation.

Drop of 50,000 Social Households Predicted

The number of social renters in England and Wales could drop by 50,000 households and the number of private renters could increase by 1.2m in the next five years, according to a housing market forecast by Savills. The research suggests that the number of social households could drop from 4.09m in 2014 to 4.04m in 2019, a 1.1% decrease. This would make up 15% of households.

Private renters are predicted to increase by 1.2 million households over the same period. Read more on Inside Housing.

Social and Private Renters

The CLG has published a wide range of demographic and economic data about social and private renters. This includes tables about:

·         demographic and economic characteristics of renters

·         accommodation characteristics

·         rents and housing benefit

·         types of letting.

These data are an output from the most recent English Housing Survey. Download from the CLG website.

Single Parents in PRS Face Poverty

The introduction of universal credit could leave many single-parent families facing a life in poverty because of rising private sector housing costs.  A study from the Centre for Research in Social Policy at Loughborough University found that the caps on how much benefit can be claimed under the new system will leave many worse-off even if they take part-time work.  According to the research – published by the charity for single people Gingerbread – a single parent with an average private rent earning the minimum wage would stay below the poverty line even if they work up to 16 hours a week.  In contrast, someone paying a social rent, covered fully by universal credit, would be able to escape poverty by working only a few hours a week.  The report further found that the universal credit will provide a disincentive to work longer hours for many people.  Download a copy of the report - Struggling to make ends meet - from the Gingerbread website.

Green Deal Cashback Incentive Welcomed

Social landlords have welcomed £125 million of cashback payments designed to encourage take-up of the green deal.  The Department of Energy and Climate Change has announced details of the scheme which offers payments worth up to £1,020 for the first landlords and residents who adopt the green deal when it opens for business in January next year.  Social landlords will only be eligible if they pay for the works themselves, but social tenants can get the cashback if they take out a green deal loan.  Find more details on the DECC website.

Councillor Accused of Distorting Housing Data

A councillor has been accused of distorting data as part of her call for councils to be given the power to raise rents for existing social housing tenants. Philippa Roe, cabinet member for strategic finance at Westminster Council, wants local authorities to be given more freedom to set rent levels. This, she argues, would allow councils to obtain more income from more affluent social housing tenants to fund more affordable housing. She has cited the authority’s housing survey needs data showing that 2,237 social housing tenants in Westminster earn more than £50,000 a year. But Paul Dimoldenberg, leader of the council’s opposition Labour group, pointed out that only 406 of the tenants earning more than £50,000 are council tenants. The remaining 1,831 are housing association tenants, whose rents are not set by the council. Read more on Inside Housing.

Living on the Edge: Financial Exclusion and Social Housing

Financial exclusion is a growing concern for an increasing number of citizens and organisations which help those on low incomes with money management and debt problems as austerity economics begin to bite. The ‘Living on the Edge’ report seeks to add to the growing evidence base about the extent of financial exclusion and debt problems within such communities. The report is based on a major interview survey with social housing tenants in the Midlands undertaken by the Human City Institute. It explores financial exclusion within the social housing sector, including debt levels, economic activity and propensity to save, as well as seeking tenants’ views on how social housing providers could help alleviate financial exclusion among their tenants. Download a copy of the report from the HCI website.

Public Backs Limits to Social Housing Areas

Sixty per cent of the public believes social tenants should be excluded from expensive areas. A Yougov poll of 2,407 British adults for think tank Policy Exchange asked people if they agree social tenants should not be offered housing in ‘expensive areas’. Thirty eight per cent strongly agreed, and 22 per cent said they ‘tend to agree’. Only 28 per cent disagreed, with 13 per cent unsure. Respondents were also asked if they agreed social tenants should not be offered homes worth more than the local average. Here 73 per cent agreed, and 15 per cent disagreed. The survey, which assessed attitudes to fairness, poverty and welfare reform, found widespread support for a tougher benefits system including increased requirements to seek work and stronger sanctions. Download a copy of the survey results from the Policy Exchange website.

Public Backs Limits to Social Housing Areas

Sixty per cent of the public believes social tenants should be excluded from expensive areas. A Yougov poll of 2,407 British adults for think tank Policy Exchange asked people if they agree social tenants should not be offered housing in ‘expensive areas’. Thirty eight per cent strongly agreed, and 22 per cent said they ‘tend to agree’. Only 28 per cent disagreed, with 13 per cent unsure. Respondents were also asked if they agreed social tenants should not be offered homes worth more than the local average. Here 73 per cent agreed, and 15 per cent disagreed. The survey, which assessed attitudes to fairness, poverty and welfare reform, found widespread support for a tougher benefits system including increased requirements to seek work and stronger sanctions. Download a copy of the survey results from the Policy Exchange website.

Retrofits 'Must Include More Choice and Support for Tenants'

A survey has found that 38 per cent of social renters are given no choice about energy efficiency improvements made to their home, over 14 per cent are worried they won’t know how to use energy-saving equipment and 17 per cent are concerned retrofit technology won’t actually work. Although 94 per cent of respondents had seen some energy efficiency upgrades made to their properties, nearly 25 per cent received no support from their landlord post-installation. Results from the poll of 251 social renters representing over 100 English housing associations show that social landlords are making some progress in engaging tenants around retrofit but more consultation is needed as well as further investment in tenant education. Ten per cent of tenants reported substantial fuel bill savings but 36 per cent said they didn’t know whether their fuel bills had reduced and 25 per cent reported that savings were not noticeable. Read more on 24dash.