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Nobody pretends that reform of housing benefit will be easy but a report out today underlines the scale of the task.

The report by the Chartered Institute of Housing (CIH) does a great job of making the links between policies on housing, welfare and the labour market. The sobering conclusion for the government is that everything it has done so far has only succeeded in reducing the rate of growth of the housing benefit bill rather than reducing it.

So as fast as the government introduces cuts like the bedroom tax the bill keeps rising faster because of inflationary factors built into the system. Between 1997/98 and 2012/13 the total bill rose by 48 per cent in real terms.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Beyond belief

So is it time to celebrate the rise in housing benefit claims by people in work as a reflection of the government’s success in getting people off benefits?

That was the claim made by Iain Duncan Smith at work and pensions questions yesterday as he answered Labour jibes about the soaring numbers of working households now dependent on state help with their rent.

The work and pensions secretary told Labour’s Emma Lewell-Buck:

‘The figure the hon. Lady did not give is that out-of-work housing benefit claims are falling, and that is because people who were claiming it are now going into work. That means that they are earning more money, which means that the likelihood of their being in poverty is far less. I wonder whether the hon. Lady would like to get up sometime and congratulate us on getting more people back to work and spending less on housing benefit as a result.’

-> Read the rest of this post on Inside Edge, my blog for Inside Housing

 


Feeling the pinch

Mark Simmonds is not getting much sympathy after claiming that MPs’ expenses make it ‘intolerable’ to live in London but has he also revealed a deeper truth about our housing system?

The MP for Boston and Skegness resigned as a minister on Monday and will leave parliament at the next election after claiming that he can’t find anywhere to rent in the capital on his £35,000 a year housing allowance.

Simmonds and his family do not exactly sound like they are among the ‘housing pinched’. These are the 1.6 million households identified in a report by the Resolution Foundation as spending more than 50 per cent of their net household income (after tax and benefits) on their rent or mortgage.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Working it out

As Labour and the Conservatives renew hostilities about the housing benefit bill, which of them will do something about it?

In the latest round of Labour’s The Choice summer offensive, shadow work and pensions secretary Rachel Reeves released figures from the House of Commons Library showing that the total bill is set to rise to £27 billion by 2018/19.

Within that, she highlighted the soaring number of claims by people in work from 617,000 at the last election to 962,000 now and 1.2 million by 2018/19. That doubling in working claims will cost a total of £12.9 billion or £488 for every household in Britain between 2010/11 and 2018/19.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Rent squeeze

Why is there so little debate about the fact that social housing rents are set to rise so much faster than prices and earnings?

Figures out this week from the ONS show that CPI inflation rose 1.9 per cent in the year to January and average earnings rose just 1.1 per cent in 2013. Earnings have now been falling in real terms since 2010, the longest period forat least 50 years.

And yet all around the country social landlords are preparing to increase their rents by at least twice the rate of inflation, and many times more than earnings, according to recent surveys by Inside Housing.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Appearance and reality in the 2014 housing market

Combine one ex-PR man prime minister with one lucky homebuyer who’s also an estate agent, then add one ex-teacher turned buy-to-let mogul. Welcome to the New Year recipe for housing, where perceptions are everything.

David Cameron used Help to Buy as a metaphor for the Conservative message about economic recovery and opportunity for all when he took part in a photo op in Southampton with a young mum and her toddler and had tea in the new home she’s just bought through a government scheme.

It seemed standard, if rather awkward-looking fare, until this post appeared on the internet claiming that the young mum, Sharon Ray, was actually Sharon O’Donnell, a sales director with the estate agent that allegedly sold the home. That was followed by a typically sexist story about the ‘attractive blonde’ in the Mail and this corrective about some exaggerations and errors in the original post. Cue a Twitterstorm and debate between those seeing the whole thing as an example of Tory fakery and those outraged by the hounding of a young woman who’d done nothing wrong.

Read the rest of this entry »


10 things about 2013: part 2

Here’s the second part of my look back at the key themes I’ve been blogging about this year.

6) Help to Buy

If the bedroom tax was the subject I blogged about most in 2013 (see Part 1 of this blog), Help to Buy was certainly the best (or worst) of the rest.

The first hints of the scheme came in January as the coalition published its Mid-Term Review. Perhaps conscious of the gap between rhetoric and reality when it came to the government’s record on housing, David Cameron promised more help for people who cannot raise a deposit for a mortgage, with details to come in the Budget. By March Cameron and Clegg were promising what sounded to me like the coalition’s fourth housing strategy in three years. And in the Budget George Osborne duly announced what I called a huge gamble, loosening the targeting of previous schemes at first-time buyers and new homes and extending the help available much further up the income scale.

Read the rest of this post on Inside Edge, my blog for Inside Housing


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