Originally published on August 29 on my blog for Inside Housing.
The freeze on the Local Housing Allowance (LHA) is a £1.2 billion question for which the answer seems obvious.
The problems detailed in analysis by the Chartered Institute of Housing (CIH) published on Wednesday are severe and they are getting worse.
LHA rates are midway through a four-year freeze that is the culmination of seven years of austerity. The result is that they have completely lost touch with the rents they were meant to cover.
The CIH analysis shows that 90% of LHA rates now fail to cover the rent of the cheapest 30% of private rented homes (bear in mind that this was itself a cut from the 50th percentile and that LHA was originally designed to enable tenants to ‘shop around’ for cheaper rents).
That leaves tenants facing rent shortfalls that grow larger with each year of austerity: outside London, two out of every three LHA shared accommodation rates have a weekly shortfall of £4 or more and half of other LHA rates are short by £10 or more; in London, the shortfalls for shared accommodation are more than £10 a week in every LHA area and at least £30 for all other homes.
The third in a series of blogs looking at the latest English Housing Survey considers the state of home ownership in 2016/17.
Home ownership has stopped shrinking
The survey says 62.6% of households owned their home in England in 2016/17, down from 62.9% the previous year. Coming after a 10-year decline from a peak of 71% in 2004, that represents relative stability and the rate is now little changed since 2013/14.
The last time home ownership was lower was in 1984, just as the Thatcher right to buy boom was at its peak.
Or has it?
However, some more profound changes are going on beneath the surface. First, it depends whether you are talking about owner-occupation or home ownership – many more of us now own more than one home thanks to buy to let.
Second, it conceals the widening divide within ownership. Traditionally owner-occupation has been about first-time buyers getting on to the housing ladder but the tenure has matured as baby boomers get older and there are now more outright owners (34%) than people buying with a mortgage (28%).
In line with that, the proportion of owners who are under 35 has halved in the last two decades from 18% to 9% and even buyers with a mortgage are older than they once were (only 46% are under 45). By contrast, 61% of outright owners are over 65.
Originally posted on August 2 on my blog for Inside Housing.
The second in a series of blogs looking at the latest English Housing Survey considers the state of the private rented sector in 2016/17.
Home to a fifth of us
The private rented sector has doubled in size over the last 20 years from 10% of households in 1996/97 (2.1m) to 20% in 2016/17 (4.7m). Most of the growth took place after 2003.
To put that growth into perspective, the private rented sector now accommodates a greater share of households than at any time since 1970. As recently as 1997, following rapid decline in the 1970s and 1980s, it was half the size of the social rented sector.