So how do you apply private rental sector rules to social housing? It’s an interesting discussion given the recent proposal of housing benefit changes by the Liberal Democrats.
Private rental sector and the free market economy
Firstly, it is worthwhile taking a look at the way the private rental sector works. Simply, the more bedrooms you want, the more you will pay in rent. That’s the free market economy for you! So if you are comparing prices of a one bedroom flat in Liverpool and look at another with two or more bedrooms in the same area the likelihood is you will need to pay more rent for the extra space.
I am really talking about like for like properties here. You can’t really compare a fully modernised one bedroom flat with top of the range fixtures and fittings with a two or three bedroom flat that is in need of modernisation.
So to summarise, in the private rental sector you will end up paying for more space.
Applying private rental sector rules to social housing
So, how do you apply these private rental sector rules to social housing? The government wanted to follow the private rental sector model and charge more for the extra space. Hence, the policy now known as the bedroom tax came along. The aim was to try and charge more to those people on benefits in social housing who had no need for the additional space.
For example, this could have been a family home where the children have grown up and left. So the parents may be left living in properties of 3 or more bedrooms. The options available to individuals were to either stay where they are and pay for the additional space (bedroom tax). Or they could downsize on the basis smaller properties were available.
Can you apply private rental sector rules to social housing?
Well, let’s ask the question in another way, has the bedroom tax policy worked? It really depends who you speak to. In some parts of the country it will be deemed to be a success by housing associations, in others a failure. The problem is there hasn’t been suitable housing stock available in some locations to accommodate these changes. This is the point that’s being made here.
Do you think private rental sector rules should apply to social housing?
