A new report by Crisis has called for the private sector to help support the most vulnerable, in lieu of low social housing availability. The report points towards skyrocketing rent levels in the private rented sector (PRS) as a key cause of the housing crisis we see today, placing overwhelming pressure on the already underfunded social housing sector.
The report not only outlines the drastic need for affordable housing, but also the relation of the housing crisis to rising health inequalities and associated costs. Safe, secure housing is the most pivotal ingredient to a healthy life, in terms of both mental and physical health, and without this stable foundation it is almost impossible to lead a functional, healthy lifestyle. The report goes into detail on the drastic consequences of insecure housing, as well as how exorbitant private sector prices are a key factor in the crisis we see today.
The report concludes with seven key recommendations:
Increase social housing supply
Joint research from Crisis and the National Housing Federation found that for the next 15 years, we must produce 90,000 social homes per year in order to end homelessness. This won’t be possible without significant and consistent investment into the provision of social housing, and a clear strategy needs to be outlined to prioritise the sector as a key driver in eradicating homelessness and housing inequality.
Ensure Local Housing Allowance (LHA) covers the cost of rent
LHA should be brought up in order to continue to cover at least the bottom 30% of rents in a local area, ensuring support for those who are struggling to access affordable PRS housing. The report also calls for the scrapping of the Shared Accommodation Rate, or at a minimum lowered back to the 25s and under to support those under 35 to access the PRS. The government should also be proactive in collating rent data from around the UK in order to ensure that the LHA rate is accurate and effective, and aid devolved governments in doing the same.
Scrap the benefit cap
Rises in LHA must reach all households, and failing a complete scrap of the benefit cap the cap must be reviewed so as to not cause anyone to be at risk of homelessness or prevent anyone from moving on from homelessness.
The report cites the stressful and difficult nature of navigating the PRS for those with lower incomes, with scarcity of housing causing many to end up on properties well beyond their means, which can have drastic knock-on effects for residents’ health. Although the report does credit the government for it’s measures in the renters’ rights bill, it signifies Discretionary Housing Payments as a vital tool which needs to be utilised to reduce the significant barriers to accessing private housing.
Remove upfront financial barriers to accessing the PRS
Crisis advocates for further reform to the renters’ rights bill, specifically to restrict the circumstances in which landlords’ can ask for a guarantor. The report also calls for a removal on deposits for those who are experiencing or at risk of homelessness by expanding Help to Rent schemes, and for the government to underwrite a rent deposit guarantee to be used by homeless charities in place of a cash deposit.
Increase Discretionary Housing Payment (DHP) funding
The government should make full use of DHP’s in order to fill the widening gap between rental levels and LHA, as well as limiting rent increases to an inflationary measure in order to ease stress on families and reduce the amount households pushed towards homelessness. As a suggestion for longer term planning, the report calls for robust monitoring of the private sector and trial rent-based regulations.
Prevent rent hikes and economic evictions
Rent increases should be limited within tenancies to the lower of either inflation (CPI), or median income growth, averaged over the last 3 years, through the Renters’ Rights Bill.
Better monitor rent rates through the planned Private Rented Sector Database
Landlords should submit up to date rent data in order for the government to set LHA rates more effectively and investigate affordability interventions.
Systemic change is needed
The report focuses on the PRS and the damage done by escalating rent levels in the private sector, whilst also touching on the broader support needed for social housing in order to guarantee stable housing for people of the UK. The evidence in the report is damning, with fewer of 3% private rented homes listed across Great Britain affordable based on LHA rates today, illustrating the nightmarish situation for many across the UK on low-incomes. The depletion of the social housing sector has compounded with an increasingly unforgiving private sector to create the housing crisis we see today, with Local Authorities across the country having to bear the brunt of costly temporary accommodation for those facing homelessness.
Crisis also call attention to the drastic negative effects on the nations health as a result of widespread unstable housing, which presents a significant drain on the NHS. Across all fronts, the current housing crisis is unacceptable, from an economic and humanitarian standpoint. The number of children in temporary accommodation continues to break records year on year. Urgent action must be taken, and both the social and private sector need urgent reform and regulation in order to provide secure, affordable housing for all, and turn the tide on the rise of not only housing but health inequalities across the UK.
The full report can be viewed here: crisb0525.pdf
