They should get rid of the housing benefit cap!

[Diggydiggydumbdum]

I’ve been thinking a lot about the housing benefit cap (Local Housing Allowance cap), and the more I read, the more it feels like a scam. It was meant to save money by capping how much rent housing benefit would cover, but instead, councils are spending eye-watering amounts on temporary accommodation, and families are left stuck in the middle.

Before the cap, housing benefit covered private rents—even the inflated ones landlords charged. It wasn’t perfect, but at least people had more options: rent privately or wait for council housing. Now, with the cap, so many families can’t afford private rents and are being evicted, which means councils have to step in with temporary accommodation.

And here’s the kicker: councils spent £1.7 billion on temporary accommodation in 2023, almost double what they spent a decade ago. Individual households in temporary accommodation can cost councils £10,000–£20,000 a year, if not more. The money they’re “saving” on housing benefit? It’s being swallowed up by this anyway.

Plus, the conditions in temporary accommodation are often terrible—unsafe, overcrowded, and miles from people’s support networks. Kids are growing up in limbo, and families have no choice over where they live. Meanwhile, private agencies and middlemen are making a fortune out of the system.

Wouldn’t it make more sense to tackle the root of the problem? One option could be adjusting housing benefit to reflect real rents, so more people could afford private housing again. Another idea is rent caps, like they have in places like New York. If rent control works in one of the most expensive cities in the world, why can’t we try it here?

People always say, “Just move to a cheaper area,” but that ignores the fact that more expensive areas still need workers. Who’s going to do the jobs that keep those places running—childminders, cleaners, hairdressers, carers—if everyone has to move out?

It just feels like the current system isn’t working for anyone (except maybe the landlords and agencies profiting from temporary housing). Why aren’t we talking about this more?

So if they are selling up then those homes become available to buy. And if it's " in droves" then the price goes down and they become affordable to those cypurrently forking out on massive rents.
Everyone can have one property they can rent out at any price. More than one and it's capped HA rent prices, more than five properties and you need to take people off the housing register.

I think they should keep the cap but up the limit, the cost of living is so high and paying services charges ect for some people really impacts on their lives.

I think it was a big mistake selling off the council houses. I also think they should be utilised by families not single people living on their own in a 3 bedroom house. The cap for housing is actually very generous. I think people need to work to pay their own rents unless disabled. There never used to be all these government top ups and such generous benefits. The tax payer can't afford them and it means less money for education and health.

LL are selling up in numbers. In the next couple of years a lot more will sell as they can't get a Victorian terrace house up to an EPC C because they are mostly single skinned. The more LL's selling up, the fewer rental houses, the higher the price they will rent for. Demand far outstrips supply. The last 3 bedroom terraced house with a back yard I put up for rent I got 15 viewings booked the first day it was advertised and 12 the second day. The EA stopped advertising after that. Of the 27 viewings over 20 wanted to rent it. It's hard picking the one family to rent to when honestly most of them sounded suitable. Rent caps will simply mean even fewer rental properties for families to rent.

Also I think.if people can't afford to rent in London they should move out of London. My DS moved up North and bought a house for less than he could rent for in the Midlands.

There is huge money available for companies running private children's homes, HMO and a huge demand for housing.

The people buying are not owner occupiers
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I have rented a 3 bedroom home (ex council - since sold to HA) for 23yrs. I've always worked full time, paid full rent, maintained the property. I originally moved in with Dd (now moved out).

We were originally offered a 3 vs 2bed as it in was in such a crap state no one wanted it. I've paid nigh on the current asking prices of houses around in rent over the years I've lived here. I had applied to downsize twice, and was refused as they have plenty of 3 beds but no 2 beds. I can't move into a flat as they don't have any, and I'm way too young to move into a bungalow (age restrictions)... Where exactly would you suggest I move? 🤔

Exactly,I do work but what are women supposed to do after that?..that’s why when most leave they end up going back,something seriously needs to change in this country.

The problem is that when lha was introduced it was capped at the lowest 50% of rents. It was reassessed regularly and worked fine. The coalition government then lowered it to 20% but then the Tory government stopped reassessing it and capped increases while rents were shooting up so it doesn't even cover the lowest 20% anymore.

Op confused the situation by calling it a housing benefit cap. What you actually mean is the local housing allowance rate, that's not a cap and isn't known ad a cap.

The demographics must be rather unique in your area then... Councils really need to start facilitating swaps rather than waiting for homes to be empty to shuffle people about. There absolutely will be people in overcrowded conditions you could swap with.

One thing I do think is we should be incentivising the big insurance and pension companies with big tax incentives to invest in social housing at social housing level of rents or shared ownership on the open market - not just new builds.

The big tax breaks should come with conditions with regard to increases in rent/service charges/maintenance standards etc-

There are also many couples and families who would be in a position to do say a 40% share on a house on the openmarket( with mortgage) and this would then be doable in a quicker time frame as not new builds -

Inner cities absolutely that would be the likely case. However, I'm out in the sticks in a mining village, and it's like this housing wise in most areas local to here. The only 1 bed properties are for over 55's, or disabled access adapted, 2beds are in high demand, 3beds not so much due to the bedroom tax. I'm exempt from the bedroom tax as I pay full rent.

Personally I'd much prefer something smaller as I'm rattling around the house, the garden is too big, and it's more expensive to heat. The housing association my property was sold off to aren't interested as they're still getting their rent.

Presumably you're on the home swapper sites then? I'm very surprised that there are no overcrowded families in your area. That's extremely odd.

The last time I applied to downsize via HA was around four years ago and they said they couldn't facilitate it for my area. I'm not looking on home swap now as DM lives in the same area is nearing end of life care, and I need to be on the doorstep. Once that time passes I'll be seeking a mortgage on a smaller property instead and returning this one to the HA. I do have the right to buy, and would receive a substantial discount but I don't agree that should still be even offered as an option anyway even if I did want to remain in this property.

Which is why I think councils/HA need to be facilitating swaps themselves, rather than having homes underoccupied for years until/unless it suits the resident. Much as I can understand why you haven't wanted to move, it's just not a sustainable way to manage social housing stock.

Can I have an instantly permanent and secure job in an easily accessible location on my current salary, then, please? DP's not so fussed about accessibility other than there actually being a bus to and from the area.

I'm not sure how I'd get a mortgage if it's obvious we'd both then be instantly unemployed (and in my case, probably unemployable due to age and disability). Oh, and because of age, it can't be for a longer term. And we've only got £14k saved due to the most recent (ie, only one in ten years) payrise finally taking us above subsistence level.

Could do with some funds towards moving several hundred miles and the necessary adaptations, too.

No, I totally agree that they should take it over as a property I did look at via swapping around 8 years ago I'd have been very happy to do. However, the family I was looking to swap with (we did actually view each other's properties) then said they had rent arrears they wanted me to pay off before they were allowed to move 🙄

The current system is an absolute mess. That's why I've twice tried to go direct via the HA and been knocked back both times.

@NeverDropYourMooncup and yep lets also add in the fact that you may not know anyone, can only have a mortgage over say 15 years max ( example) and that many cheap areas in midlands and north arent always brimming with decently paid jobs and competition for them is higher and that the nicer areas are often not that cheap -

Maybe it might work if you are youngish and public service ( police/nurse/doctor/teacher ) etc -

How unbelievably cheeky of them!
Do use your RTB though. I am ideologically opposed to it, but on a personal level, the world owes none of us a favour. Take what you can get. They system isn't your responsibility, you making your own life harder wont fix it.

This basically prices anyone out on low paid jobs out of where they are working.
There are low paid jobs in London that still need doing, and it is pretty shite to expect those people to commute for hours just to do them.
It is all very well saying that the problem should be with the employers, and that they should pay more. Good luck getting cleaners in the NHS a pay rise big enough to afford London rents without HB.

If London ever struggles to fill low paid vacancies, you would have a point. I believe the opposite is currently true, and areas of London are some of the lowest paid in the country.

But those low paid people are being topped up with UC and HB. If they were not, then I would think things would look very different.

Yes, but my point is, job vacancies are not a reason to lift the cap currently. It isn't a current issue.

In my area housing benefit can be increased for a year if someone is homeless and they can't afford private rent. However, there are still lots of people in temporary accommodation, including families being put up in hotels with no kitchen facilities, because there just aren't enough homes available. Scrapping the housing benefit cap won't do anything positive, it could possibly inflate rent prices further and it would be very unfair for people just above the benefits threshold who struggle to make ends meet and end up in worse housing than people who are on benefits. I do fully support a benefit system but I also don't think those working should be worse off for it.