Posts with tag: homelessness

Should housing benefit increase in line with UK rent prices?

Published On: October 10, 2019 at 8:17 am

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Did you know that today is World Homeless Day? This is an awareness day that takes place around the world on 10th October in order to change the lives of homeless people in their local communities.

As such, Crisis and The Joseph Rowntree Foundation are calling on the Government to invest in Local Housing Allowance (LHA), the housing benefit aspect of Universal Credit. This is due to the opinion poll published today, which shows 75% of respondents agree that housing benefit should increase if rents go up.

A survey was commissioned by the charities and conducted by Public First. Over 4,000 UK adults were involved, with 76% responding that housing benefit is a practical way for Government to stop people experiencing homelessness in the first place.

Housing benefit was originally designed in 2011 so that people on low incomes could afford the cheapest 30% of private rentals in their area. However, there has since been a lack of investment and a four-year freeze since 2016. The rates now fall woefully short of the true cost of renting, which continues to rise in many parts of the country. 

Research published by Crisis earlier this year shows that housing benefit shortfalls have led to little to no affordable private housing in many areas across the UK. The charity believes that this is pushing thousands of individuals and families to the brink of homelessness.

Jon Sparkes, Chief Executive at Crisis, said: “A safe and stable home is fundamental to our dignity and humanity. But every day, we hear of people losing their homes as the constant pressure of rising living costs become impossible to bear.

“The Westminster Government has committed to reduce homelessness, but without addressing the root causes such as unaffordable rents, homelessness will continue to rise. Housing benefit is an important tool and could be the quickest and most effective way to prevent homelessness in the short term, but it is fundamentally flawed because of severe under investment. Ending homelessness is truly within our capabilities and government must act now to deliver on its promises.”

Darren Baxter, Housing Policy and Partnerships Manager at The Joseph Rowntree Foundation, said: “A home should be an anchor against being swept into poverty but for many families the cost of renting a home is adding an extra strain. 

“It does not have to be this way. We can ensure housing costs do not push households into poverty if we invest in building the low cost rented homes and, in the short term, invest in housing benefit so that it reflects the real costs of renting.”

Will scrapping Section 21 trigger a rise in homelessness?

Published On: September 20, 2019 at 8:53 am

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As many as 50% of Section 21 cases handled by Landlord Action, the tenant eviction company, are a result of tenants wanting to be re-housed by the council.

They believe the abolition of Section 21, and subsequent expansion of Section 8, could put thousands of tenants at greater risk of receiving a County Court Judgement (CCJ) and ending up homeless as local councils will not be obliged to re-house those with rent arrears judgements. 

Landlord Action has pointed out that Section 8 cases are for mandatory two months’ rent arrears. Although it is unknown how many Section 21 cases happen as a result of rent arrears, Landlord Action says it is the number one reason landlords serve notice.

There were 22,527 accelerated possession claims issued in 2018, according to data from the Ministry of Justice. Of those accelerated possession claims under Section 21, 10,127 resulted in evictions carried out by County Court bailiffs.

Therefore, if landlords are forced to use Section 8 route in the future, thousands more tenants will have rent arrears judgements against them, rather than simply being evicted using Section 21. In addition, more tenants could find themselves with a County Court Judgement (CCJ), which will severely impact their future credit rating.

Paul Shamplina, founder of Landlord Action, has commented on what this means for tenants: “Local councils will see when a tenant has a rent arrears possession order made against them so will consider that that tenant has made themselves homeless.  Therefore, the council will not be obliged to re-house them as they do at present under Section 21 accelerated procedure. 

“If those tenants cannot get accommodation in the private rented sector and cannot be re-housed by the council, what will happen to them?”

Paul Shamplina is also concerned that the figures indicate there will be an increase in Section 8 hearings due to landlords having their alternative option of Section 21 removed.

Recently, MHCLG attended Landlord Action offices shadowing the solicitors and paralegal staff to gain a greater understanding of the possession process, and what impact reforms to Section 8 and court processes could have.

“As well as a rise in homelessness, I believe there will be many other unintended consequences following the abolition of Section 21. These will include, but not be limited to; vulnerable tenants struggling to find accommodation as landlords become more selective; a surge in Section 21 claims as landlords feel increasingly powerless and opt to exit the market. 

“A shrinking private rented sector will result in further rent rises for tenants. In addition, unless anti-social behaviour is tackled within the reforms, unruly tenants will have the opportunity to remain in properties for longer causing landlords and their neighbours unnecessary stress,” adds Paul.

Housing Hand seek help from councils to ensure better access to UK housing

Published On: September 11, 2019 at 9:38 am

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The number of those sleeping rough in the UK has risen by 165% between 2010 and 2018, according to figures from the Ministry of Housing, Communities and Local Government.

UK rent guarantor service Housing Hand believes that it is time that local councils did all they can to support those who find it harder to access housing. It acknowledges that supporting people to get off the streets and back into mainstream housing is a complex issue, better addressed by supporting those at risk of becoming homeless in the first place.

According to the Museum for Homelessness, a homeless person dies every 19 hours in the UK. Over the past eight years, homelessness has risen sharply, so we are in desperate need of a solution.

Housing Hand wishes to contribute more to establishing this solution. It is due to meet with Housing Minister Esther McVey during this month to discuss plans to support those who are finding it hard to access housing, including working with local councils.

Jeremy Robinson, Group Managed Director of Housing Hand, has commented: “Local authorities have a complex task ahead of them when it comes to meeting the housing needs of some of the most vulnerable members of our society. 

“Doing so requires them to work with a range of external agencies and to find new ways of supporting their constituents. As such, Housing Hand is trialling a new way of working with local councils to ensure that those who need housing are better able to access it.”

Housing Hand’s service involves it stepping in to act as a guarantor should the tenant not be able to pay their rent. The company works directly with landlords, local councils and tenants in order to provide stability within the rented accommodation sector. It is undertaking the trial with local councils as part of its corporate social responsibility agenda.

Spending Review pledges to reduce homelessness and rough sleeping

Published On: September 6, 2019 at 8:17 am

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Spending Review

As part of the Spending Review, Chancellor Sajid Javid has pledged £54m of new funding to reduce homelessness and rough sleeping.

Overall, the Government’s funding commitment will now reach a total of £422m.

Here are the highlights from the Spending Review announcement:

  • £40m additional funding for Discretionary Housing Payments to tackle affordability pressures in the private rented sector in England and Wales
  • £23m to fund a range of other measures, including support for vulnerable claimants and people with complex needs migrating to Universal Credit, additional outreach activities to support those who are homeless, and increasing the number of Armed Forces champions to support veterans when entering the labour market.

Reacting to the announcement, Jon Sparkes, Chief Executive of Crisis, said: “Right now there are thousands of people homeless up and down the country and even more in vulnerable circumstances, on the brink of homelessness. 

“The Government has committed to ending rough sleeping and tackling homelessness, and whilst the additional funding announced today is a welcome step, today’s Spending Review is ultimately a missed opportunity for Government to be serious in tackling the fundamental issues that cause homelessness in the first place. 

“Every day through our work we hear from people whose Housing Benefit simply doesn’t cover the cost of their rent, leaving them under immense financial pressure and at genuine risk of homelessness. We need significant investment commitments from Government to genuinely help struggling families to keep the roof over their head.

“If Government is serious about meeting its 2027 commitment to end rough sleeping, then we need bolder financial commitments to prevent people from losing their home in the first place, and investment decisions that result in significantly more truly affordable social homes to be built. 

“We know that homelessness can be ended, but without measures such as  these prioritised in Government’s spending decisions, it will only continue to rise.”

Investment in housing benefit could save thousands from homelessness

Published On: September 2, 2019 at 9:09 am

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A new report from Crisis released today supports the belief that investment in housing benefit would prevent thousands from becoming homeless.

Crisis believes that restoring the levels of housing benefit, otherwise known as Local Housing Allowance (LHA), could make a massive difference.

If it truly covered the costs of market rents, housing benefit has the potential to prevent more than 6,000 households from being forced into homelessness. It could also lift more than 35,000 children in the UK out of poverty in the next three years.

The research, conducted by Alma Economics, outlines the three-year cost and benefit analysis of a Government investment of £3.3 billion in LHA for immediate net benefits of £2.1 billion. Crisis is calling for £820m in the next year as part of upcoming spending decisions.

The charity believes that lifting the benefits freeze and investing in LHA would help thousands currently close to becoming homeless by covering the costs of the cheapest 30% of market rents.

It would also help those already homeless to afford a rented home and significantly reduce the number of families and individuals turning to their local councils for help. In turn, this would reduce the need for homelessness services and extremely expensive temporary accommodation.

Alongside the immediate net benefits of £2.1bn over the three years, this would also give the Government time to build a sufficient supply of truly affordable housing in the years to come whilst ensuring that homelessness across the country doesn’t continue to rise.

LHA is the housing benefit aspect of Universal Credit, providing support to those on low incomes who are unable to meet the cost of private rent. LHA rates were originally set to ensure the recipient could afford the cheapest third of properties in their area, meaning most were able to access a safe and stable home to build their lives in. 

However, there has been a series of cuts to LHA over the years, including a four-year freeze from 2016. This has led to rates failing to keep up with the cost of rents in most areas across the country, meaning safe, affordable housing is becoming increasingly difficult to find.

With families and individuals often accumulating debt having to make up the shortfall between their LHA and rent, this mounting financial pressure means they are easily forced out of their home and into homelessness.

Crisis is now calling on the Government to commit to restoring the LHA rates so that they cover the true cost of rent.

Jon Sparkes, Chief Executive of Crisis, said: “Everyone in our society should have the means to rent a safe, stable home where they can build their lives. But every day at Crisis, we hear of the agonising stress and anxiety people face, unable to afford their rent and keep the roof over their head.

“Right now, people are losing their homes and being left trapped in homelessness, unable to get back into adequate housing. We have to stop this happening.

“The UK Government has made commitments to end rough sleeping and reduce homelessness, but without addressing the root causes behind homelessness, it will sadly continue to rise.

“Long-term solutions like building more affordable social homes will take time so in the meantime, investing in LHA, so it covers the true cost of rents, provides the quickest and most effective opportunity to help those already homeless back into housing and for thousands more, prevent it from happening in the first place. 

“Over the coming weeks, we urge the Government to prioritise investment in Local Housing Allowance as part of its upcoming spending decisions – this research makes a clear-cut case that doing so will have an immediate financial and human impact. Ending homelessness for good is truly within our capabilities but will only be made possible by taking steps like this.”

Terrie Alafat CBE, Chief Executive of the Chartered Institute of Housing, said: “The Chartered Institute of Housing is pleased to join Crisis and so many other organisations in calling on the government to restore local housing allowance to cover the most affordable 30% of rents.  

“It is a national shame that thousands of families face being made homeless and councils are spending £1 billion a year on temporary accommodation because LHA is failing to do its job. Addressing this issue will bring the government significant savings in the benefit bill, as well as giving some of our most vulnerable fellow-citizens a more secure environment in which to live.

“A staggering 97% of private rents in England are currently simply unaffordable under benefit rules. This leaves thousands of families having to choose between paying their rent and feeding their children. The social and economic cost of this broken system simply cannot be justified.”

Claims Section 21 is ‘leading cause of homelessness’ not supported by available evidence

Published On: August 16, 2019 at 9:13 am

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The National Landlords Association (NLA) has rejected claims from the Government that the use of Section 21 eviction notices by landlords has been the leading cause of homelessness in the UK.

This is in regards to government data stating that 11.8% (3,890) households out of 33,020 assessed by local authorities between October and December 2018 faced homelessness as a result of being served Section 21 notices.

These figures also highlighted the top reason for why families lost their last settled home being because family or friends were no longer willing or able to accommodate them. This accounted for over 15,000 households.

The next most common reason was an assured shorthand tenancy (AST) coming to an end. This includes tenancies ended using Section 8, which is a fault-based system, and tenants abandoning the property, as well as Section 21.

Richard Lambert, CEO of the NLA, commented: “Claims by the government and tenant support groups that Section 21 is the leading cause of homelessness are not supported by the available evidence.

“They are factually incorrect, misleading and just plain wrong. No reasonable landlord would seek to evict a tenant without good cause.

“Most evictions are a symptom of wider issues, such as the freeze on local housing allowance, insecure jobs, and the lack of support for vulnerable tenants to sustain private tenancies successfully.

“The increase in the use of no-fault evictions through Section 21 is because landlords simply don’t have faith in the courts being able to deal with eviction cases, however justified their reason.

“That’s why we’re appealing directly to the prime minister to save section 21. Landlords are running businesses and have very few options when it comes to managing the risks they face. The focus should instead be on fixing the issues that contribute to this risk.”