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Housing associations struggling to let larger properties since reform (2 December 2013)
Date: 02/12/2013
According to new research published by Community Housing Cymru (CHC), recent housing benefit reforms that have made it difficult for housing associations to let affordable homes could prevent hundreds more from being built on an annual basis.
CHC, which represents housing associations, revealed that it had struggled to let 700 properties since the changes to benefits payments in April. The cut in spare room subsidy has resulted in many tenants shunning larger homes, as their benefits no longer cover the cost.
CHC has estimated that the reduced entitlement to “bedroom tax” for tenants of working age had cost an estimated £1m to its members since spring and that it would continue to hamper future investments. It also said that rent arrears had also increased during the period.
Nick Bennet, CHC Chief Executive, criticised the new policy and revealed that landlords are already struggling to subsidise the extra cost brought about by the reforms. However, UK ministers believe it is “right” that people now contribute to these costs.
“Our reforms restore fairness to a system that was allowed to spiral out of control,” a Department of Work and Pensions spokesperson said. “Even after the removal of the spare room subsidy we still pay the majority of most claimants' rent, but the taxpayer can no longer afford to pay for people to live in properties larger than they need.”
Duncan Lewis can help you with your housing authority issue. We have a highly experienced team of no win no fee housing solicitors and aim to find quick and effective solution for your case.