Chair of the Policy & Politics Board Alex Marsh reviews the implications of the proposal to cut housing association rents by 1% each year for the next four years, announced as part of the recent government summer budget. This post was originally published on the Policy Press blog.
George Osborne’s recent “emergency” budget proposed many changes to state support to lower income households in a bid to fulfil the Conservatives’ manifesto pledge to cut £12bn from welfare spending.
One unexpected aspect of this package was the proposal to cut housing association rents by 1% each year for the next four years.
This proposal was justified with reference to social housing rent rises over the last few years. These have pushed up the already substantial housing benefit bill. Households have needed greater state assistance in order to afford the rents being set. Bearing down on rents over the next few years will, it is claimed, both reduce the housing benefit bill and force social landlords to deliver efficiency gains. Continue reading