12,000 social housing tenants aged under 35 face £8.6m rent shortfall

Around 12,000 social housing tenants who are under-35 in Scotland face a collective rent shortfall of up to £8.6 million, according to a report.

Department for Work and Pensions proposals could see local housing allowance (LHA) payments or the housing element of Universal Credit limited to that of the shared accommodation rate after April 2019.

The Chartered Institute of Housing’s (CIH) research found around 12,000 under35s living in Scotland would collectively be hit by a rent affordability gap of between £5.3m and £8.6m if the changes are implemented.

CIH Scotland policy and practice manager Ashley Campbell said: “The results of this research confirm the damaging impact the UK Government’s plans to cap housing benefit at LHA rates will have on younger social tenants in Scotland.

“Thatimpactgoesfarbeyond the immediate financial effect. Many of those 12,000 affected face the prospect of falling into rent arrears and, in the worst cases, losing their home and being made homeless. In many cases, local authorities will face real challenges with rehousing those now unable to afford their rent because we simply do not have enough appropriate housing available to do so.”

The figures are an estimated gap between current housing benefit and future LHA rates for single people aged under 35 in social housing.

Since October 2015, the UK government has made various proposals and amendments to cap housing benefit or the housing element of Universal Credit for social housing tenants at LHA rates, including for those living in supported or temporary accommodation.

A DWP spokesman said: “The best way to help people pay their rent is to help them into work, and employment is now at a record high.”