THE PROVISION OF AFFORDABLE HOUSING IN THE UKAgainst the Government cuts

There are announced plans to make cuts worth £11bn by 2014/15. (Osborne, 2010)

Housing policy 1.

Intro

duct

ion

Quantity was the main focus in the 1950s whereas in the 1970s there was a shift towards quality. (Bramley et al., 2005)

Affordability concept in the past years 2.

Hist

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Nowadays, the main focus is on affordability which is ‘price versus means’. (Bramley et al., 2005)

Affordability concept in the past years 2.

Hist

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“means of a family is the relationship between housing cost and the income and other resources of households.” . (Bramley et al., 2005)

“affordability is of a decent home, within the means of a family.” 3.

Affo

rdab

ility

Defin

ition

Click icon to add pictureKeyH*: Least adequate housing.N*: Least adequate residual income.Y: Budget line slope. A: Face an unquestionable problem.B & C: Can not reach a suitable position as they are below the budget line slope.G & E: Problem of high ratios of affordability.Relation between affordability and the income and

housing standards 3.

Affo

rdab

ility

Defin

ition

(Bramley et al., 2005)

SavedAbolishedSigned(Stothart, 2010).

Key 4.

Gov

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700000 jobless peopleThe current cheap rents are good for getting people into work as they are reasonably affordable than would be in the future when the new cuts take effect.(Stothart, 2010)

Unemployment 5.

Res

ults

of t

he 1

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Analysis by the Chartered Institute of Housing shows families with more than two children will struggle to afford to live in any part of London. (Direct)

The costs of temporary and bed and breakfast accommodation will rocket. 6.

Ren

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6.

Ren

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LHA Direct(2010) Local Housing AllowanceList of Rents (Direct, 2009)

(Bramley et al., 2005)

7.

Inco

me

dist

ribut

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8.

Mor

tgag

e Pa

ymen

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(Bramley et al., 2005)

9.

Futu

re A

naly

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(Bramley et al., 2005)

10.

Cas

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Case Study:Households along East London Lines to suffer under

local housing allowance cuts

10.

Cas

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Click icon to add pictureFamilies living along the East London Line will struggle under government cuts to the local housing allowance.

Treasury’s 2010 Budget estimates assume saving from reforms: £600 million by 2012/2013. (Research commissioned by housing charity Shelter)

Tower Hamlets: £118/ Household a month worse off

Lewisham: £87/ Household a month.

Nationwide: 134,000 households face eviction/Shifts

Either evicted / Forced to move when the cuts come in next year.

Unable to negotiate cheaper rents.

Families forced to approach local authorities for housing assistance

May cost government up to £120 million/year, even if restricted aid to neediest families. (Report from the University of Cambridge)10

. C

ase

Stud

y

Click icon to add pictureHousing allowance cap (Coalition government-June 2010 budget).

Cap housing allowance at :

£400/week/four-bedroom house

£340/three-bedroom

£290/two-bedroom.

Much lower figure than current rental rates in London boroughs.

London Councils (33 boroughs) warned neighborhoods & capital would be divided disproportionately

Inundated response from alarmed housing officers.

10.

Cas

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Click icon to add pictureJules Pipe (Labour mayor of Hackney):

“This blanket cap ignores the high rental values in many areas of London and, without providing any form of alternative housing provision, makes large swathes of the capital virtual ‘no-go’ areas to large numbers of people, including those who are needed to keep both business and vital public services operating…many more people made homeless, who if eligible to be housed will join the 2,000 households already in Hackney’s temporary accommodation, and if not may end up on the streets”. (Source: Hackney Housing Group)

Source: http://www.eastlondonlines.co.uk/2010/09/east-london-lines-homes-bear-brunt-of-housing-allowance-cuts/

10.

Cas

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12.

Ref

eren

ces

Click icon to add pictureBramley, G and Karley, Noah Kofi (2005) 'How Much Extra Affordable Housing is Needed inEngland?', Housing Studies, 20: 5, 685 — 715

Direct, L. (2009). Local Housing Allowance. Retrieved November 29, 2010, from Local Housing Allowance web site: https://lha-direct.voa.gov.uk/Secure/ListOfRents.aspx

Osborne, G. (2010, June 22). Budget 2010: welfare benefits cut. London: Channel 4 news.

Stothart, C. & Brown, C. (2010). Housing Benefit Cuts Slammed by Sector. Inside Housing , 2.

 

Source: http://www.eastlondonlines.co.uk/2010/09/east-london-lines-homes-bear-brunt-of-housing-allowance-cuts/

11.

Con

clusio

nClick icon to add pictureGovernment wants to commit to providing more affordable

housing. However, this cannot be achieved by excessive budget cuts:

Places unwanted uncertainty and risk on participants of housing provision.

In foreseen future, possible 700,000 jobless across the nation

Result: homelessness.

Government wants to improve public finance through welfare budget cuts.

However, latter will directly impact on jobseekers and families

Result: Additional burdens to communities.

Government should analyze affordable housing models in a futuristic approach before instituting culls.

THANK YOUAny questions?