Almost five million families living in social housing face fresh squeeze this April with biggest rent rise in a decade
" />Posted 22.12.21
Resolution Foundation: Further reading
4.75 million families living in social housing in England are facing rent rises of up to 4.1% next April - equivalent to an average £202 extra per year - the biggest nominal increase in a decade, according to new Resolution Foundation.
The latest Housing Outlook examines how the rise in the social housing cap in April 2022 - which coincides with the peak of the cost of living crunch, delivering significant tax rises and a huge increase in the energy bill cap - will affect renters.
While this is a cap rather than a requirement, most housing providers are expected to raise rents by the full amount. This comes on top of a decade in which housing costs have risen faster than incomes for those living in social housing.
Social renters now spend 19% of their income on housing costs, net of housing benefit, up from 15% a decade ago. This rise is equivalent to an extra £786 per year for the average social renter family.
In contrast, the share of income that private renters spend on housing has stayed flat over the same period (albeit at a far higher 31% of income), while housing costs for homeowners have fallen (to 9% of income).
Housing benefit will take the strain for some social renters, but the share of social renters receiving state support with their housing costs has fallen in recent years, as more have moved into employment.
Almost half of social renters (44% - equivalent to over 2 million families) are not in receipt of housing benefit, and as a result will have to find the funds to cover their April rent rise entirely by themselves.
*****
Return to this month's headlines
KEEP UP-TO-DATE WITH ISSUES AFFECTING THE SOCIAL AND AFFORDABLE HOUSING SECTORS
NEWS AND VIEWS REPORTED IN BRIEF SUMMARY FORMAT, WITH LINKS FOR FURTHER READING
RECOGNISABLE CATEGORY SECTIONS FOR EASY ACCESS
AN ESSENTIAL FREE RESOURCE FOR ANYONE WITH A BUSY SCHEDULE
EDITED BY MIKE SKILTON
CLICK ON THE SECTIONS BELOW FOR ALL CURRENT POSTS - OR THOSE FOR SELECTED PAST MONTHS
