Fears mount in industry as cuts to social housing funding leads to higher rents and increased homelessness
The main question on the lips of speakers and attendees at the Westminster Social Policy Forum seminar, held in London Bridge this Tuesday, was what will happen to the housing market after 2015?
With cuts to the sector already having a negative impact on the industry, concern grew as to the consequences, should funding be cut even further in the next budget allocation.
The government’s existing £4.5 billion programme for funding affordable housing runs until 2015 and Steve Amos, head of social housing at Barclays, said this was a ‘dramatic reduction’ on previous allocations.
During this panel discussion headed ‘The framework for affordable rent’, Amos added that, in the rental markets, higher rental income streams are anticipated, but this adds to a higher risk of tenants falling into arrears, with “risk coming at a price for the housing association sector.”
Mark Henderson, CEO of Home Group, posed the question as to what would happen in the years from 2015 to 2020, saying the current format is not sustainable as figures released in April showed an increase of 52,600 households in need of housing.
Pippa Read, policy leader in sustainable developments at the National Housing Federation said the social housing sector was facing five key challenges.
She listed these as:
Welfare reform, seeking a repeal of the bedroom tax
A need for clarity for housing associations on longterm rental streams to offer stability
Information on capital grants after 2015, which is currently uncertain
Access to land; Read called this ‘the most crucial ingredient’
Regulation, with a call for the government to provide conditions to allow the sector to work to the best of it’s ability.
Speaking about the correlation between a lack of housing supply and an in homelessness, Deborah Garvie, from charity Shelter, said that the loss of an AST (Assured Shorthold Tenancy) was now the biggest cause of homelessness.
She revealed the startling figure of 56,300 households who are now living in temporary accommodation in the UK, including 76,000 children.
“The public rented sector is now one of the main causes of homelessness”, said Garvie.
“Up to 259,000 people are now unable to pay their rent”.
She said the charity has been taking action to clamp down on rogue landlords and called for legislation to allow tenants to hold contracts of tenure of five years with contracts similar to variable mortgage deals.
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