Monday, October 22, 2012

Landlord benefits

The number of working households forced to rely on housing benefit since the recession began in 2008 has doubled – a trend that will lead to a million earners being dependent on welfare to keep a roof over their heads by the next election, according to a Home Truths study by the National Housing Federation.

 In May 2012 there were 903,440 working recipients of housing benefits – more than double the figure for November 2008 and a jump that signifies an alarming rise in in-work poverty. As private rents rise faster than wages, another 10,000 working people a month need housing benefit to afford their rent. By the next election, the study warns, 1.2 million "strivers" will only be able to stay in their homes through welfare payments.

The number of households in Britain is growing three times as fast as the number of homes being built. In England by 2018 the average weekly rent will be £245, up from today's £181, a leap of 35%.  By 2018 homes in England will cost on average £292,060, almost £60,000 more than today. The result is that increasingly even those in work will not be able to afford to live in a home without benefits.

An analysis of official statistics for Karen Buck, the Labour MP and a parliamentary expert on welfare, found that between 2011-12 and 2014-15 £35bn of housing benefit will be spent on private landlords, £13bn more than the previous three years.

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