At the end of 2022, the Bureau of Investigative Journalism reported that 98% of rental properties advertised in July 2022 were unaffordable for those claiming housing benefits. And as we head further into 2023, this housing crisis is showing no signs of relenting.
Here we’re taking a look at the reasons behind the chronic shortage of affordable housing, and what it means for those already struggling to make ends meet.
Why is there a collapse in affordable housing?
There are many reasons why we’re seeing a collapse in affordable housing, but in the main, it comes down to two overarching problems: a physical housing shortage, and insufficient government support during a cost of living crisis.
The housing shortage
There’s a general consensus across the main political parties in the UK that housing supply in England needs to increase. Whilst it’s difficult to know to what extent, it’s been estimated that around 340,000 new houses are needed each year, and that 145,000 should be affordable. The target set in the 2019 Conservative Manifesto was to build 300,000 homes per year. Currently, we’re nowhere near that point.
The problems caused by a lack of affordable, or even available, housing are numerous. Overcrowding, insecure or inadequate living conditions, being forced into unmanageable debt - these are all worrying consequences of a housing shortage.
Inadequate government support
As housing benefits remain frozen at March 2020 levels, and Local Housing Allowance (LHA) stays based on the levels set in 2018-2019, the future looks bleak for many, especially since rental prices have increased anywhere between 5-8% across England.
Add to this the fact that government support packages to help with energy bills are only a temporary measure, and that the price of food and basic amenities continues to rise, it’s not hard to see how many people and families will find themselves running out of options.
A discriminative renting market
One of the most disturbing effects of the rise in rental prices is a clear discrimination within the market.
Speaking to The Guardian in 2022, renters painted a bleak picture of tough bidding wars, high numbers of people viewing the same properties, and rentals being snapped up within minutes of being advertised. Ultimately, it’s a picture of a system working against low income households who currently have no prospect of securing a private rental, never mind getting onto the property ladder.
Struggling to make ends meet
Unfortunately, given all of the above, our sector is seeing a rise in all forms of homelessness, with the most recent statistics showing that the number of people sleeping rough has increased by more than a quarter in a year.
Households on low incomes are more at risk of losing their homes than ever before. With the rising cost of living, high rents, and mortgages becoming increasingly unattainable, families are becoming destitute. In addition, temporary accommodation providers are struggling, with services becoming over stretched and unable to meet demand.
As we’ve discussed in a previous blog, the government’s 2022 Autumn Statement shows a woeful lack of commitment to help those who are the most vulnerable in this crisis. And it’s time for this to change.
This is why Simon on the Streets is still out there. We’re more dedicated than ever to providing practical and emotional support to those facing homelessness, so we can break the cycle and make a change.
If you’d like to help us in our mission, get involved with one of our upcoming events. For more details, don’t hesitate to get in touch and follow us across our social channels to stay up to date with the latest.