The impact of housing benefit reform on tenants living in the private rented sector has been "geographically limited" but London has been hardest hit, according to research published today by the Department for Work and Pensions.
Research from an independent consortium led by the Centre for Regional Economic and Social Research (CRESR) at Sheffield Hallam University on behalf of the DWP covers the impact of changes to local housing allowance (LHA) in the private rented sector.
The research looked at the attitudes of claimants and landlords in 19 areas across Great Britain following housing benefit reforms that started in April 2011.
The report finds:
• The anticipated displacement of LHA households has not yet happened
• It is falling to tenants to fill the benefit gap in the majority of cases (94%) rather than landlords through reducing rents (6%)
• In 120 council areas, reductions to housing benefit have been £5 or less
• The extra £130 million of support from DWP to councils to help tenants has "blunted the impacts in London and tighter PRS markets elsewhere.
Source; 24Dash
Housing benefit claimants in the private rented sector have had to meet 94 per cent of the shortfall caused by local housing allowance cuts, with few landlords reducing rents.
Tenants shoulder cost of welfare reforms
The findings were contained in a government-commissioned report into the government’s LHA changes published this week by a research consortium led by Sheffield Hallam University. The consortium interviewed tenants, landlords and housing benefit advisors in 19 areas across Great Britain.
The consortium’s interim report found 94 per cent of the reduction in benefit has fallen to tenants to meet themselves, while only six per cent has been met by landlords reducing rent. The report adds however: ‘There may, however, be informal arrangements whereby landlords turn a blind eye to tenants who fail to meet the full rent payment, at least for the remainder of their current tenancy and it may take time for market rents to adjust to the changes.’
The consortium’s interim report found that the ‘early affects of LHA reforms had been… limited in terms of displacement, additional evictions or more cases of homelessness’. However, much of the research was carried out in early 2012 when many existing claimants would have been in ‘transitional protection’ from the changes and would have yet to have been affected.
The report also found that measures such as discretionary housing payments have ‘blunted the impacts’ of the LHA changes in London and other ‘tighter PRS markets’ such as York and Cambridge.
LHA, paid to private renters, has been capped at between £250 and £400 a week since April 2011 for new claimants and since January 2012 for existing claimants. The government has also set LHA rates in line with the bottom third of rents instead of the median and has increased the shared accommodation rate age limit.
Inside Housing
Research from an independent consortium led by the Centre for Regional Economic and Social Research (CRESR) at Sheffield Hallam University on behalf of the DWP covers the impact of changes to local housing allowance (LHA) in the private rented sector.
The research looked at the attitudes of claimants and landlords in 19 areas across Great Britain following housing benefit reforms that started in April 2011.
The report finds:
• The anticipated displacement of LHA households has not yet happened
• It is falling to tenants to fill the benefit gap in the majority of cases (94%) rather than landlords through reducing rents (6%)
• In 120 council areas, reductions to housing benefit have been £5 or less
• The extra £130 million of support from DWP to councils to help tenants has "blunted the impacts in London and tighter PRS markets elsewhere.
Source; 24Dash
Housing benefit claimants in the private rented sector have had to meet 94 per cent of the shortfall caused by local housing allowance cuts, with few landlords reducing rents.
Tenants shoulder cost of welfare reforms
The findings were contained in a government-commissioned report into the government’s LHA changes published this week by a research consortium led by Sheffield Hallam University. The consortium interviewed tenants, landlords and housing benefit advisors in 19 areas across Great Britain.
The consortium’s interim report found 94 per cent of the reduction in benefit has fallen to tenants to meet themselves, while only six per cent has been met by landlords reducing rent. The report adds however: ‘There may, however, be informal arrangements whereby landlords turn a blind eye to tenants who fail to meet the full rent payment, at least for the remainder of their current tenancy and it may take time for market rents to adjust to the changes.’
The consortium’s interim report found that the ‘early affects of LHA reforms had been… limited in terms of displacement, additional evictions or more cases of homelessness’. However, much of the research was carried out in early 2012 when many existing claimants would have been in ‘transitional protection’ from the changes and would have yet to have been affected.
The report also found that measures such as discretionary housing payments have ‘blunted the impacts’ of the LHA changes in London and other ‘tighter PRS markets’ such as York and Cambridge.
LHA, paid to private renters, has been capped at between £250 and £400 a week since April 2011 for new claimants and since January 2012 for existing claimants. The government has also set LHA rates in line with the bottom third of rents instead of the median and has increased the shared accommodation rate age limit.
Inside Housing
