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Social landlords could 'turn their backs' on benefit claimants
Housing associations may in the future ‘turn their back’ on benefit claimants and stop housing them in the face of further welfare reform, an industry chief has said.
At the Chartered Institute of Housing’s annual conference in Manchester yesterday, Tony Stacey, chair of Placeshapers, which represents 100 housing associations, predicted that social landlords might reach a ‘crossroads’ and concentrate more on housing people on higher incomes.
Social landlords are braced for details on the expected £12bn of benefit cuts that are due to be outlined in an emergency Budget next week.
Mr Stacey said: ‘It won’t be completely black and white [but] you may see the turning point here, a crossroads, with some associations deciding to turn their back.
‘I think what you are going to see is that some boards will say… we’re not going to be looking to house so many people on welfare benefits, we’ll drift up the market.’
Mr Stacey’s comments follow a major report by the Smith Institute this week, which said housing associations are displaying a ‘greater reluctance’ to house poor and vulnerable people.
Working together – thinking alike revealed that ‘a number of councils maintained that housing associations have changed their approach to nominations by introducing strict affordability criteria, particularly in respect of affordable rent properties’.
The report recommended that the government assess the practical impact of its welfare reforms and cuts in development grant on nominations.
Research by Inside Housing this year found that housing associations have introduced stricter financial tests for prospective tenants, leading to fears that poor residents could find it harder to be housed.
