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BPF questions ‘muddled’ policy on homes for young people

Research by landlord bodies¹ shows that while cuts to housing benefits come into effect, resulting in a likely rise in demand for houses of multiple occupation (HMOs), article 4 directions prohibiting the construction of HMOs are ‘popping up left, right and centre’.

Planned changes to the Shared Accommodation Rate could see an estimated 88,000 25-to-34-year-olds dropped from a benefit rate designed to cover the cost of a one bedroom flat, to a rate that will only cover shared accommodation.

Yet research shows local authorities up-and-down the country using article 4 directions to stop the construction of HMOs, which are already in short supply and likely to come under increased pressure as thousands of 25-to-34-year-olds search for somewhere to live after the housing benefit cuts come into effect.

The current list of known local authorities preventing HMOs, includes:

• Bath
• Bournemouth
• Brighton
• Bristol
• Canterbury
• Charnwood (Loughborough, Leicestershire)
• Durham
• Exeter
• Leeds
• Manchester
• Milton Keynes
• Newcastle-up-Tyne
• Northampton
• Oxford
• Portsmouth
• Preston
• Redbridge (Ilford, East London)
• Sheffield
• Thanet (Margate, Kent)

With others in the pipeline, such as Southampton City Council.

Ian Fletcher, director of policy at the British Property Federation, said: “The Government’s policy on housing for young people is wholly contradictory at present.

“On the one hand the Government wishes to change housing benefit payments to encourage up to 88,000 young people into shared accommodation. On the other hand, local authorities up-and-down the country are increasingly blocking the provision of houses in multiple occupancy, without having a clue whether they need more shared homes or not.

“Take Southampton, for example, which does not know how many shared houses it has or how many shared houses it needs, but is sure it does not want more of them, despite central Government policy creating more need for them.

“Councils should at least be under some sort of obligation to do a proper assessment of supply and need before they start reaching for article 4 directions.”

Contact the BPF on 020 7828 0111

Patrick Clift, Media and Public Affairs Manager, on 07834 439 505

Paul Sweeney, Media Officer, on 07841 732 194

Notes to editors

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