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More people turning to Housing Benefit to help pay rent

Mortgages and Home

Simon Ward
Updated on 22 October 2012 | 7 Comments

New study finds that rising cost of renting a home is leading to increasing numbers of people claiming Housing Benefit.

People are becoming increasingly reliant on benefits to help them pay the rent, according to a new study.

The National Housing Federation (NHF), which represents housing associations, carried out the study. It says a lack of new homes being built is pushing up rents, as more and more people cannot afford to get onto the property ladder and so compete for rented homes.

It claims that’s led to an 86% increase in UK workers claiming Housing Benefit from 2009 to this year.

The NHF says that the cost of renting a home has risen by 37% in the past five years and predicts it will rise by a further 35% in the next six years, as it believes house prices will also increase.

It’s calling for brownfield land to be released to housing associations to build on.

Housing charity Shelter also wants more homes built. It found that one in ten people between the ages of 20 and 40 are living at home with their parents because they say they can’t afford to even rent a home.

This study follows figures showing the cost of renting a home in England and Wales rose to another record high in September.

More on homes

What to do if you're struggling to pay the rent

Is build-to-let the answer to the housing shortage?

Dealing with letting agents

How to pay less rent as a property guardian

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Comments

yocoxy
25 October 2012
High rents Nick? Maybe you recommend purchase? ;-)
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electricblue
24 October 2012
Current government inherited a mess caused by huge influx of Eastern Europeans who share houses so are happy with big rents and in my area have pushed rents up by 30% or more in last three years. Blame is squarely with Labour, current government can't perform miracles.
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nicknuts
23 October 2012
HB keeps rents high. This government is as clueless as the last one.
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