Tenants falling behind with their rent since controversial scheme was introduced
Housing associations are finding that they are losing more than £600,000 a month because tenants can’t afford to make ends meet since the government cut housing benefits to those deemed to have “spare” bedrooms.
And the number of empty homes is rising and they’re staying empty for longer, even though the government claimed it was introducing the tax because demand for larger homes was high.
Figures compiled by 12 Merseyside housing associations show that at the end of August, rent arrears were £19,909,707.
At the end of August last year, the arrears were £17,678,607.
Alan Rogers, managing director at Cobalt housing, said: “The government said the bedroom tax would free up homes for people who need them, but it is having a worsening impact on the number of perfectly good three-bedroom properties that are standing empty in our neighbourhoods.”
The larger, three-bedroomed houses that the government claims are needed for bigger families are among the ones most likely to be left “void”. Hard-up residents have had to give them up because they were finding themselves landed with having to find up to £1000 a year extra towards their rent.
Helena Partnerships, based in St Helens, saw the number of empty three-bedroom properties on its books double in the last 12 months to 120.
There are now just under 2,000 empty homes of all sizes – a 30% increase on the figure a year ago.
While the Department of Work And Pensions claimed that the end of the “spare room subsidy” would help free up larger homes, the bedroom tax is creating demand for smaller homes that are not available.
Daniel Klemm, from the National Housing Federation, said the figures were deeply worrying, adding: “People can’t even move into smaller homes to avoid the bedroom tax because there aren’t enough smaller properties.
“The figures are yet more evidence to show that the bedroom tax is pushing vulnerable families into debt. Liverpool council said the arrears racked up so far showed the tax “had to go”.
Deputy mayor Cllr Paul Brant, who is also chairman of housing association Riverside, said: “The bedroom tax is both hurting tenants and their housing associations.”
Peter Browne, 42, who lives in a two-bedroom flat in Anfield, said he expected to fall into arrears soon. He added: “I was in credit so that helped, but I fully expect to go into arrears. It’s going to make a massive difference. People might say it’s only £12 a week or so but that might be your gas for the week. It’s going to come down to a choice between heating and eating. I wouldn’t bet against it coming down to that.”
A spokesman for the DWP said: “The removal of the spare room subsidy is a necessary reform to return fairness to housing benefit.
“Even after the reform we pay over 80% of most claimants’ housing benefit, but the taxpayer can no longer afford to pay for people to live in properties larger than they need.”
By Marc Waddington in the Liverpool Echo
