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Construction News
14/10/2011
Unaffordable Private Rents Demonstrate Government Housing Policy Folly
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Construction union UCATT are calling on the Government to drop plans to massively increase the level of social housing rents, after new research from housing charity Shelter revealed that the majority of private rents are now unaffordable.
The Government is proposing that in future all new social housing tenants should pay rents at 80 per cent of local market rates. UCATT have repeatedly warned that this would result in many families being forced onto benefits in order to pay the increased charges.
Shelter's research found that average private rents in 55% of local authorities in England were unaffordable (over 35% of median local take home pay) and that 8% of private rents in English local authorities were extremely unaffordable (costing at least half of take home pay). Private rents were affordable in just 12% of areas.
Shelter also found that in recent years private rent levels had risen at one and half times the rate of incomes.
George Guy, Acting General Secretary of UCATT, said: "The latest research from Shelter demonstrates exactly what is wrong with the Government’s housing policy, by massively increasing the rents in social housing, you are forcing families into a poverty trap and a life on benefits. The proposed rents will be set at levels that families are simply unable to afford."
(CD/GK)
The Government is proposing that in future all new social housing tenants should pay rents at 80 per cent of local market rates. UCATT have repeatedly warned that this would result in many families being forced onto benefits in order to pay the increased charges.
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Shelter's research found that average private rents in 55% of local authorities in England were unaffordable (over 35% of median local take home pay) and that 8% of private rents in English local authorities were extremely unaffordable (costing at least half of take home pay). Private rents were affordable in just 12% of areas.
Shelter also found that in recent years private rent levels had risen at one and half times the rate of incomes.
George Guy, Acting General Secretary of UCATT, said: "The latest research from Shelter demonstrates exactly what is wrong with the Government’s housing policy, by massively increasing the rents in social housing, you are forcing families into a poverty trap and a life on benefits. The proposed rents will be set at levels that families are simply unable to afford."
(CD/GK)
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