Housing Benefit Changes Set to Increase Demand for Social Rented Homes

The SFHA has said that changes to regulations affecting ....... Local Housing Allowance announced by the Department of Work and Pensions risk increasing demand for social rented housing, at a time when housing associations and co-operatives are struggling to meet existing demand. The reduction in Local Housing Allowance to the 30th percentile paid to tenants in the private sector will now be brought forward to April 2011, rather than October 2011. However existing customers will be exempt for up to 9 months from the date their claim is reviewed by their local authority

The SFHA through its campaign, Housing Benefits - the campaign for a fairer system, is pressing for a rethink of the current proposals to reform housing benefit, which will impact on the poorest in society and increase demand for social housing.

SFHA Chief Executive Mary Taylor said:

"Tenants of private landlords will need time to respond to these changes. In the meantime, it will create higher demand for social housing as people struggle to afford private sector rents. The increase in new applicants for social rented housing will impact on the chances of existing tenants who require re-housing due to over or under occupancy, or health reasons.

"We welcome the move, albeit temporary, to continue direct payments of Housing Benefit to landlords, as the simplest way for both tenant and landlord to ensure rental payments are met.

"While we agree that the current system is over-complicated and needs reform, simply cutting benefits at a time when there is less work available is unfair.

"Councils and advice agencies may struggle to handle the workload as a result of these changes, and at a time of cuts to services.

"The changes proposed to Housing Benefit and other benefits in the June Budget and the October Spending Review are arbitrary and will affect tenants and social landlords adversely. There needs to be a sustainable, long-term plan for housing and social policy in this country which meets the range of needs of different communities. Housing Benefits society - so should the welfare system.

"Scotland's housing associations and co-operative are already struggling to meet existing demand, and are facing rising demand at a time when there is less funding available to build new homes."

 

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