We simply don’t have enough homes – of the right size, in the right places.
The National Housing Federation, the body which represents housing associations has estimated that some 180,000 households across the UK are ‘under occupying’ two bedroom homes in the social rented sector.
These households will be expected to move and downsize or see their housing benefit cut by an average of £728 p.a. for one ‘spare room’. No assistance is provided towards moving costs.
But the NHF goes on to say that last year only 85,000 one bedroom properties became available in the social rented sector. Simple maths shows therefore that over half the so-called ‘under occupiers’ won’t be able to move even if they wanted to. They’ll have no option but to bear the cost of reduced housing benefit. That will be painful for many.
There is of course the option of moving into smaller accommodation in the private rented sector, but as rents are typically higher, the additional housing benefit cost to the government is likely to outweigh the money raised from the benefit cuts in the social sector, again, according to the NHF.
So what’s the real problem? It’s simply that as a country, we are not building enough new homes – and we haven’t for many years. Even doubling the current low level of new home starts would not meet the demand for homes in the UK, let alone eat into the backlog.
The bedroom tax policy will rumble on as a controversy for a long time, but the real issue which should be addressed is getting the UK building again.
Stephen Smith is director of housing and external affairs at Legal & General
