These figures certainly reflect the impact of COVID-19. According to the English Housing Survey, during the financial year 2020-21, the number of social housing tenants in full-time work fell from 31% to 25%, and in part-time work, slightly down from 14% to 13%. Over half (51%) of social renters were retired, in full-time education or ‘inactive’, a group which includes those who have a long-term illness or disability and those who were looking after the family or home.
Affordable rent was introduced by the coalition government as part of its austerity programme, to enable them to provide a lower level of grant for new build. It is counter-productive because it costs the Treasury more in housing benefit than social rent homes. It is grossly unfair because tenants can be paying nearly double the rent for the same type of property for the same service.
“Conversion from social rent to affordable rent is pernicious. There should be a moratorium on its use”
Although we don’t have national statistics which separate levels of arrears for social rent and affordable rent, the overall trend of arrears is upwards. Arrears in English authorities with council housing increased by 29% from 2018-19 to 2020-21: £245.4m to £317.2m. The freezing of benefits can only promote this upward trend and the difference between social and affordable rent increases year on year.
Even the Conservative thinktank the Centre for Social Justice states: “Affordable rent was developed with the intent of maximising new social housing delivery in the context of significantly reduced grant. However, the method of linking affordable rents to market rents has had the effect of pricing out low-income renters from higher-cost areas, while forcing housing benefit to ‘take the strain’ of more expensive rents.”
It is the tenants who pay full rent, or part of it, who ‘take the strain’ as well, since they tend to be in lower-paid and precarious work.
Conversion from social rent to affordable rent is pernicious. There should be a moratorium on its use. But ultimately so long as the current funding policy is maintained, then the slow displacement of homes paying social rent with those paying affordable rent will continue. For housing associations, 10% of their stock charges affordable rent.
Government grant for new housebuilding should only be available for social rent homes and it has to be much higher than the current average. It is high time that there was a concerted effort to demand that the charging of affordable rent is ended.
Martin Wicks, secretary, Swindon Tenants Campaign Group
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