Many private landlords are lining their pockets with housing benefits the national housing federation has stated.
A Private landlord body has dismissed the claim, it said the money was support for tenants to pay rent rather than a landlord hand-out.
The national housing federation (NHF) claims that private landlords received £9.4 million in housing benefits last year, which is double that from ten years ago.
Due to a lack of affordable housing there has been a 42% rise in the amount of private renters recieving housing benfitis since 2008. Private landlords reiceved £4.6 billion in housing benefits in 2006.
If the private rented had been living in affordable housing in the last seven years the public could have saved £15.6 billion.
Over £1,000 a year is spent extra on housing benefits for a family living in the private rent, thats £5,705 compared to £4,637 in the social rented sector this figure goes up to £3,300 more per year in London.
The cheif excectuvei of NHF David Orr says “It’s madness to spend £9 billion of taxpayer’s money lining the pockets of private landlords rather than investing in affordable housing”
“Housing associations want to build the homes the nation needs. By loosening restrictions on existing funding, the Government can free up housing associations to build more affordable housing at better value to the taxpayer and directly address the housing crisis.”
Over Double the number of families are claiming housing venitif whilst they are in work (compared to 47% compare to 26% just six years ago). Housing benefits recipients rented private now earn an average of £4,00 more than six years ago.
The NHF has also said that home in private rented sectors are of a lower quality with 1 in 3 failing to meet the English housing surveys decent homes standard.
The CEO of National landlords association: Richard Lambert said “Housing benefit is not a subsidy to landlords, it’s a support for tenants to ensure they can pay for their housing.”
HE also said a proportion of landlords letting tenants recioeve housing benifits had halved over the last fiver years due to “benefit levels have not kept up with rents”.
“The NHF is clearly still reeling from the news that its members have been ordered by government to reduce spending over the next four years, so it comes as no surprise that they are looking to shift the emphasis and point the finger elsewhere,” Mr. Lambert said.
“The private rented sector has grown as the market responds to the increasing demand for homes, particularly from a growing proportion of tenants whom the social sector and housing associations simply are not able to support in the current circumstances.”