Charity claims rental affordability is forcing people into homelessness and unfit accommodation that harms their health.
Crisis claims that fewer than three in every 100 private rental properties listed in England (2.5%) are now affordable for people on housing benefit. This is down from 12% in 2021-22 and despite the fact housing benefit was increased in April 2024 by then Chancellor Jeremy Hunt.
The charity claims the situation is bleak across Great Britain, with just 2.7% of private rented properties affordable across the whole country.
By looking at the gap between housing benefits and the cheapest 30% of rents between April and October 2024, data provided by Zoopla shows that households in Britain are being forced to find, on average, an additional £337 a month for a one-bed, £326 for a two-bed and £486 for a three-bed home.
In addition, a nationwide freeze on housing benefits comes into force this week. As a result, 5.7 million households that rely on housing benefit to pay their rent1 will see a real-terms cut in the amount of support they receive.
Crisis says this means they are now even more likely to face difficult financial choices to meet rent costs, be pushed into arrears or even be forced into homelessness.
It suggests that linking benefits to rising rents would help to reduce poverty and prevent homelessness, and also improve public health. Official figures from the English Housing Survey showed that, in 2023, over one million homes in England had problems with cold or damp.
Over the last decade, rents in the private sector have risen by 45% in England. In the 12 months leading up to February this year, England has seen average monthly rents increase to £1,381.
This is against a backdrop of rising homelessness, with 126,040 households in England now in temporary accommodation, including over 164,000 children – the highest since records began.
Crisis warns that the cost of sticking plaster, short-term solutions is pushing already stretched local authorities to breaking point – with 2.3 billion spent on temporary accommodation between April 2023 and March 2024.
Matt Downie, Chief Executive at Crisis, says: “This isn’t just a difficult situation for private renters on low incomes, it’s an impossible one. In every local area, housing benefit is supposed to cover the lowest third of rents in the private sector. We are currently nowhere near that.
“There is no doubt that this week’s freeze on housing benefit will lead to rising homelessness. It also risks completely overwhelming local authorities who are already struggling to cope with the demand for support and will leave more people stuck in unfit temporary accommodation that damages their health and wellbeing.
“While we are pleased the Westminster government is working on a plan to get England back on track to ending homelessness, the scale of its ambition must match the gravity of the situation.
“We urge ministers to reverse the real-terms cut they are making to housing benefit as it will only undermine their efforts. We must also see a once in a generation commitment to building the social homes we so desperately need if we are to create a better, healthier future for the nation.”
This article is taken from Landlord Today