Poor tenants shut out of social housing on affordability grounds

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Poor tenants shut out of social housing on affordability grounds

Tenants on the lowest incomes are being blocked from social housing because providers fear they will not be able to afford the rent, research reveals.

A study by homelessness charity Crisis shows housing associations in England are increasingly rejecting applicants following affordability checks carried out before a tenancy begins.

Around a third of English housing associations taking part said those checks frequently uncovered information that led them to conclude an offer was unsuitable.

Almost a quarter said households earning below certain thresholds were at times excluded entirely from housing registers.

That means some poorer applicants never reach the point of being considered for a social home, not because of behaviour or need, but over income issues to sustain a tenancy.

Where will tenants go?

The charity’s chief executive, Matt Downie, said: “Working with people who use our services, we know that people can be excluded from accessing a social home because their incomes are too low to meet the necessary criteria.

“The fundamental aim of social housing is to provide a safe and stable home for people on the lowest incomes.

“If people cannot afford social housing, where do they go?”

He added: “The reckless depletion of our social housing stock, alongside cuts to state support, has put English housing associations into an impossible position where they are forced to refuse access to people in precarious, vulnerable situations.

“Homelessness is surpassing record levels. Its costs to people, communities and local authorities are untenable.”

Change in allocation handling

Nearly three quarters of associations, accounting for 90% of the homes in the sample, said recent changes to benefits had altered how allocations and lettings are handled.

Limits on housing benefit and the benefit cap have pushed providers to scrutinise affordability more closely.

At the same time, associations reported a growing concentration of applicants with complex support needs.

As a result, unless someone faced acute circumstances such as severe ill health or domestic abuse, access to a social tenancy was described as unlikely or subject to long delays.

Even for households that do secure a property, there were fears that inadequate support beyond housing could make keeping the tenancy far harder.

Unsuitable tenants

One in four English housing associations said they often turned down nominations from councils because the proposed let was judged unsuitable.

Some cited the need for costly adaptations or the absence of specialist support as reasons for prioritising certain tenants.

Applicants with a history of anti-social behaviour faced the greatest exclusion.

Three quarters of associations said registers would sometimes or always shut out such households where no support package existed.

Still, more than half said exclusions could apply even when assistance was in place.

How houses are used

Researchers from Heriot-Watt University and the UK Collaborative Centre for Housing Evidence say that housing associations compared the task of allocating scarce properties to rearranging the deckchairs on the Titanic.

Almost three quarters operating choice-based lettings said the homes available bore little relation to the needs presented, with some doubting any system could prioritise demand given the numbers involved.

Rising repair costs and tighter building standards were also flagged as pressures limiting new development.

Crisis is urging ministers to overhaul how existing stock is used, pointing to Scotland where refusals on suitability grounds are far rarer.

While a quarter of English associations reported frequently rejecting council nominations, just 6% of Scottish providers said the same.

More than half of new social lets north of the border go to homeless households, compared with just over a quarter in England.

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