Apr

MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

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The Mayor of London has accused private landlords across the UK of taking rent worth £9 billion for homes that are ‘non decent’, £1.6 billion of which is paid for via housing benefit.

The figure is highlighted as, this morning, Sadiq Khan reveals his PRS research generated in partnership with campaigning group Generation Rent, covering not just the capital but other areas of the UK too.

Both have used strong language in their announcement. Khan says the situation is a ‘scandal’ while Dan Wilson Craw, Acting Director of Generation Rent says it is an ‘outrage’.

Their research is based on the Government’s existing definition of a ‘non decent home’ which includes properties that pose a risk to residents’ health or life, are in a bad state of repair, are cold or lack modern facilities.

Housing benefit

The analysis reveals London has the highest ‘non decent’ rent spend, with landlords receiving £3.5bn in rent, £500m of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London.

The second worst-affected region is Yorkshire and the Humber, where landlords are receiving nearly £1bn in rent, including around £130m a year in housing benefit, from around 160,000 privately rented, non-decent properties.

Meanwhile, private landlords in the South West are accumulating around £870m in rent, with more than £160m of this coming from housing benefit through letting sub-standard homes.

Khan says: “We are building a record number of new affordable homes in London, but we need to see national action to support renters. It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st century living.”

Craw (pictured) adds: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it.”

The Government is due to bring in a specific and mandatory Decent Homes Standard for the PRS when its reform proposals become law, probably early next year.

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