monopoly and cash

Rent swallows 36% of income for Isle of Wight social housing tenants

According to official figures, low income households moving into social housing on the Isle of Wight spend more than a third of their income on rent.

Housing charities said a reduction in benefits has made the rent burden more severe for people in need and called for more social homes to be built to keep up with demand.

Third on income on rent
The latest data from the Ministry of Housing, Communities and Local Government shows that new social tenants spent, on average, 36% of their monthly income on rent during the financial year 2017-18.

Although it is 58% cheaper than the private market, the median tenancy rent for social houses on the Isle of Wight was £82 per week.

This amount excludes the payments of bills.

Social housing is let at low rents to those who are most in need or struggling with their housing costs.

According to the housing charity Shelter and the Joseph Rowntree Foundation, spending more than a third of your disposable income on rent or a mortgage means you may not be able to afford other basic needs.

Compared to national average
Nationally, households living in social housing spent 34% of their income on rent.

The median rent for new social housing tenancies in England was £83 per week, which is £1.50 lower than the previous year.

The data shows that 21% of new social housing tenants were in work on the Isle of Wight. A further 6% were over 65 and 14% were rough sleepers or people living in temporary accommodation.

House building needed
Catherine Ryder, head of policy at the National Housing Federation, said:

“Our research shows we need to build 90,000 homes for social rent each year to keep up with demand.

“To do this, Government must reform how land is sold, so that housing associations are not directly competing with private developers for land to build social housing.

“Reduction in benefits since 2010 will also have had an impact on people’s incomes and are making it much harder for people to afford rent and other essentials.”

Downward trend
The total number of new social housing lettings peaked in 2013-14, and since then there has been a steady downward trend.

A spokesperson from the ministry puts this trend down a fall in the number of vacant properties available to be re-let.

He said:

“A widening affordability gap between the social and private rental sectors discourages current social tenants from moving into private accommodation. As a result, turnover is lower.”


Article shared by Data Reporter as part of OnTheWight’s collaboration with Press Association and Urbs Media

Image: TaxRebate under CC BY 2.0

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