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Finally, The Link Between Benefits & Standards

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We have long argued that if a Local Authority (LA) wants to increase the standard of the worst rental properties, they should focus on those occupied by tenants on housing benefit or one of its equivalents.  LA's shy away from this because they struggle enough with homelessness without doing anything which would immediately make the problem worse - now the Deputy Prime Minister, Angela Raynor has said rogue landlords in England will face curbs on how much housing benefit they can receive if their properties are substandard.

The Detail Announcement

 The Deputy Prime Minister announced a funding increase to tackle the nation's housing crisis. This additional funding, amounting to £350m, complements the £500m previously allocated during the budget announcement. 

As part of the strategy to enhance affordable housing availability, the government will introduce measures to address the issue of exploitative landlords. These measures, to be formally outlined by Rayner this month, include the implementation of a new licensing scheme, stricter regulatory standards, and provisions to prevent housing benefit payments to rogue and criminal landlords operating in supported housing.

This action comes in response to critical issues such as criminal groups acquiring large properties and accommodating vulnerable individuals in substandard, mould-infested conditions, offering no adequate care. The Ministry of Housing, Communities and Local Government highlighted other alarming cases, including the housing of rape victims alongside sex offenders, and neighbourhoods in areas like Blackpool, Birmingham, Blackburn, and Hull suffering from open drug use and antisocial behaviour.

The additional funding was announced amid significant pressures faced by local councils in providing housing, particularly temporary accommodation. Rayner emphasized the severity of the situation, stating, "For so many families, and their children, the security and safety of a home of their own remains firmly out of reach – and instead they have to live in temporary accommodation, including in B&Bs. This is unacceptable and is the result of the housing crisis we are facing head on."

The £350m will be allocated as follows:

  • £300m will support the construction of approximately 2,800 homes under the Affordable Homes Programme, with 50% designated for social rent.
  • £50m will be invested in the Local Authority Housing Fund to improve the quality of accommodation.

The housing crisis has reached critical levels, with over 123,000 households currently in temporary accommodation, including nearly 160,000 children. Furthermore, almost 6,000 families with children are residing in B&Bs.

The £500m funding for affordable housing, announced during the budget, is expected to result in 5,000 builds. The wider Affordable Homes Programme, valued at £11.5bn, aims to deliver up to 130,000 homes by 2026.

Locally, Portsmouth South MP, Stephen Morgan backed the government's decision to triple the Rough Sleeping Winter Pressures Funding from £10 million to £30 million and Portsmouth City Council announced its budget proposals, which include a maximum council tax increase and a £31m investment in temporary housing for homeless residents.  

It really does sound like we need more HMOs to house all these people and reduce the cost for both local and central government plus a big push from the LA to stop ignoring the shoddy properties they have supported with Housing Benefit over the past few years.

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About the author

Martin Silman

Martin began his landlord journey 30 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 12 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.

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