Odd effects

It’s no exaggeration to say that the changes that the government are introducing to affordable housing are the most extensive and far-reaching since 1945. They’re also implementing them at real pace.

That means they can’t really work through the impacts of what will happen on the ground when all these reforms start working together. Some of the effects are going to be pretty perverse, from what I hear from housing people. Here’s one:

In the private rented sector, families are going to be forced out of family-sized homes, and these same homes will become the preserve of single people.

Why?

1. The cap on housing benefit and the cap on overall benefits to £26,000, are likely to force larger families into smaller homes as family homes for them become unaffordable. There’s a strong chance that this measure will considerably increase overcrowding.  

2. The government’s reforms to single people’s benefits will give people under-35 enough housing benefit to afford a room is a shared home. So, as families stop being able to afford to live in family homes, private landlords will find it easier to let larger homes to several single people.

So, it would seem to the centre that these are consistent policies to reducing the benefits bill – imposing benefit limits on families and single people. On the ground, it creates the perverse situation where poorer families get forced out of family homes which are then colonised by poorer single people.

The Mayor of London and the government have said it’s a problem that there are not enough family homes for families and we don’t build enough of them. It’s true. But, family homes in the private sector for poorer people are going to become more scarce.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

3 Responses to Odd effects

  1. Jenny – where did you stumble across us from? We’re getting through commenting on the reform package and have covered rents. But you’re right, there’ll definitely be more to say. Hope you like the site and look forward to more comments.
    Tony

  2. Jenny says:

    Just stumbled upon this so not had a chance to read through properly but looking forward to getting stuck in. Looks like a great blog.

    You are right to say that these are massive changes. I believe they will be as big in impact as the right to buy, perhaps more so. I don’t know if you’ve covered the new proposals around ‘affordable’ rent model for new build ‘social’ homes. The requirement on developing housing associations to let existing properties on new higher rents will devastate the social sector in the long term. Many homes are likely to go into this new intermediate sector and are unlikely to be let as traditional social homes again. This could decimate and further residualise the remaining homes. This hasn’t really come up outside the trade press and needs highlighting.

    Good luck with the blog.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s