Hannah AldridgeNew Policy Institutehannah.aldridge@npi.org.uk

Housing and Poverty in London

London’s Poverty Profile

Uses official data to monitor poverty trends in London

Funded by Trust for London, printed publication available, data online: www.londonspovertyprofile.org.uk

Poverty defined as: less than 60% of median income, after housing costs

London’s long-term poverty trends

Number of people in poverty in London has risen from 1.9m to 2.2m over the last decade, mainly due to population growth

but underneath that poverty has transformed

London’s long-term poverty trends

Typical Londoner in poverty now: in working family, in private rented accommodation, in Outer London

Tenure in London

Inner London has largest private rented sectorbut is distinct for size of social rent stock

The rise poverty in the PRS

Its not just working age adults – children are at the sharp end of London’s housing crisis

Adequacy of PRS housing

Poor quality 30% of PRS non-decent (15% of SRS)Insecure Two thirds of private renters have lived in their current

home less than three years (the social rent average is 11 years)

Expensive Average weekly private rent £1,600pm; for social rent its

£500pm needs don’t match means – and children lose out

Role of Housing benefit

75% are in work, up from 50% in 2011; (compares to 55% in Rest of England)

HB increasingly a an in-work family benefit in London

Local housing allowance claimants with children

Highest levels aren’t in Inner London

Numerous clusters across Outer London

Issues for London

PRS is dominant market but unfit for purpose Housing benefit is increasing importance as in-

work benefit Need for affordable housing product that is:

Affordable for families with children Doesn’t require savings to access Is financially sustainable or acts as a transition tenure

to something that is Preventative? ‘generation rent’