Tag Archives: housing benefit

Why the housing benefit changes are not about social cleansing, but instead about getting rents reduced for all tenants.

In New York there is a political party named “The Rent’s too damn high”, founded by Jimmy McMillan. What he argues is that life is difficult in New York because rents are too high. It is important to recognise that private sector rents are also an issue in the UK as well as those funded by the state.

Since November 2008 private rents have gone down by 5% and private rents funded by Local Housing Allowance (LHA) have gone up by 3%. The government changed the housing benefit system for private landlords a few years ago replacing Housing Benefit with a Local Housing Allowance. As LHA will be paid regardless of how high the rent actually is, this has driven up the rents paid in this sector. In comparison to the rents on the old Housing Benefit an additional 10% is being paid through LHA.

It is worth noting that the upward pressure on rents from LHA has also driven up rents paid by people who don’t get Housing Benefit. This is neither helpful to the country, where money is being borrowed to overpay landlords nor is it helpful to the lower paid who are renting privately.

The government, therefore, has a number of objectives in controlling housing benefit: