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Housing leaders are gearing up for a double hit from the planned housing benefit reform. The proposed changes threaten hardship for individuals and could have a knock-on effect on new housing supply, according to members of the Chartered Institute of Housing (CIH).
Following the proposed reforms to housing benefit announced in the Emergency Budget in June, members of the UK Housing Panel express concerns over rising demand for social housing as reduced income threatens to impact new affordable house building. The proposed reforms are also expected to increase the risk of poverty and rent arrears unless landlords take action to increase support, welfare and debt advice.
In the third quarterly report from the UK Housing Panel, professionals who record key measures of housing supply and demand, affordability and housing quality, members were asked to assess the possible impact of the proposed cuts to housing benefit on their business.
Over three quarters of respondents (78 per cent) said that the cuts could result in increased rent arrears. A further 66 per cent of respondents highlighted the risk of an increase in bad debts as a result of the changes to housing benefit. And 54 per cent said they believe that there could be a rise in the number of evictions unless spiralling arrears can be prevented.
Over half of respondents agreed that the proposed cuts in housing benefit could lead to increased pressure on housing registers (54 per cent) and a higher demand for services (53 per cent). At the same time, over two thirds of respondents (67 per cent) highlighted the risk of reduced income as a likely impact of the housing benefit cuts.
CIH Chief Executive Sarah Webb said: "We understand the need to make savings on the welfare bill, but these proposed tweaks, which have little impact on expenditure but a massive impact on claimants, are not the way to proceed. They run contrary to the government's own welfare reform plans and will hit individuals hard. They will also place real pressure on private and social landlords and local authorities across the UK."
(CD/GK)
