Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Poorest households face 'catastrophe' as number of affordable rental homes for those on housing benefit drops by a third in five months

Poorest households face 'catastrophe' as number of affordable rental homes for those on housing benefit drops by a third in five months

Statistics show that for a one-bedroom property, households now face gaps, or shortfalls, of over £950 a year on average. People living in two and three bedroom homes are having to find more than £1,500 and £2,300 (respectively) a year extra on top of their housing benefit.

The gap between housing benefit and the actual cost of private rent has risen by 40% in just five months, Sky News has learned.

Figures from the homeless charity Crisis and Zoopla show that affordable homes in England, for those on housing allowance, have declined by more than a third.

It means only 8% of private rental properties, on average, are now affordable to those on housing benefit.

Around 1.7 million households in England currently rely on Local Housing Allowance (LHA) to pay their private rent.

The statistics, which were given exclusively to Sky News, show that for a one-bedroom property households now face gaps, or shortfalls, of over £950 a year on average.

People living in two and three bedroom homes are having to find more than £1,500 and £2,300 (respectively) a year extra on top of their housing benefit.

Crisis chief executive Matt Downie


Crisis chief executive Matt Downie said: "This isn't a sort of prediction of things getting worse, it already is worse.

"We know that rough sleeping is going up. We know the councils have nowhere to put people.

"And unless, in the November financial statement, the government increases housing benefit in line with inflation, just like they're talking about for other benefits, this is this is going to be catastrophic."

Housing benefit levels have been frozen since early 2020 and are based on rents from 2018-2019.

Since then private rental rates have been rising at the fastest rate on record.

Mr Downie describes it as a "false economy".

Percentage of homes in England affordable under Local Housing Allowance rates


He added: "Once somebody becomes homeless, they cost far more to the state and they have to be put in temporary accommodation or helped in other ways."

The new figures show the poorest households in England are being almost completely priced out of the rental market.

Nicole Hamilton is living with her two-year-old son Logan in emergency accommodation in London


Nicole Hamilton, 27, is living with her two-year-old son Logan in emergency accommodation in London after fleeing domestic violence. She has been staying in a one room flat for months because she's been unable to find an affordable rental.

The single mother works full time as a project manager but still needs housing allowance to pay rent.

That allowance, however, does not cover the local rents for a two bedroom property in the area where her son attends a childcare setting, and where her family live.

On the morning Sky News visited Nicole she had called the police out at 4.30am because somebody who looked like they were "on drugs" had been hammering on her front door trying to gain access while her son slept.

"I think it's a bit unsafe," she said, "I don't really like it… the thing that is stressful at the moment is they don't know how long I'm going to be here."

Share of listings below current Local Housing Allowance rates in England


"(Estate agents) also hear that I'm a single mum I'm on benefits, even though I work full time …and my income is good, but because I use benefits as part of the system to help pay my rent nobody is interested."

The private rental market has become saturated due to an increasing supply and demand issue.

Rising mortgage rates, changes in tax and legislation have pushed more landlords out.

Renters are also signing up for longer lets which means less stock available.

Inflation and the cost of living have meant that the widening gap between private rent and housing allowance is predicted to get worse.

Cllr David Renard, housing spokesperson for the Local Government Association, also called for the freeze on housing allowance to be lifted, as well as greater support for authorities.

"Councils need more resources in terms of being able to fund homelessness services and to recruit the necessary housing officers to provide that support.

"So local authorities are very short of resources these days because of the increased demand."

The Department for Levelling Up, Housing and Communities released a statement saying: "Our Renters Reform Bill will deliver a fairer deal for renters, empowering them to challenge unjustified rent increases.

"During the pandemic we increased Local Housing Allowance significantly, benefiting over one million households by an average of over £600 a year. This is alongside our Energy Price Guarantee which will save households on average £700 this winter with an extra £1,200 of cost-of-living support for the most vulnerable."

London saw the most drastic fall in affordable properties, almost halving since April.

The North East, which Zoopla says is the region with the highest proportion of one-bed properties available, has just a quarter of affordable one-beds.

London is second worst with 13%.

According to Crisis, five of the nine regions (the East, East Midlands, South West, West Midlands, and Yorkshire and the Humber), had fewer than one in 10 affordable one-bed properties.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
×