David Cameron claims housing benefit cuts have slashed rents

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Prime Minister David Cameron claimed today that the Government's housing benefit cuts have brought down rent levels across the country, despite evidence to suggest that they are continuing to reach record highs.

Mr Cameron was quizzed in the commons today by Labour MP Joan Ruddock about plans to extend the Shared Accommodation Rate (SAR).

This will see those aged 35 or under receive only the lower shared room rate rather than the full rate for a one-bed flat.

In response, Mr Cameron said that since the Coalition had implemented some of its housing benefit reforms, rent levels had come down.

He said: "All parties are committed, as I understand it, to reform housing benefit. That was Labour's commitment before the last election. The housing benefit bill is completely out of control. Labour's own welfare spokesman said last week that at £20 billion, it was unacceptable and it had to change and what we've seen so far, as housing benefit has been reformed and reduced, is that actually we have seen rent levels come down. So we've stopped ripping off the taxpayer."

Since the Coalition came to power, it has capped housing benefit in the private sector and extended the Shared Accommodation Rate (SAR).

It also wants to slash the benefit of tenants deemed to be living with spare rooms and put a cap of £500 a week on the total benefits any household can claim from 2013.

It claims that the cuts will force landlords to cut their rents, but as yet, recent evidence suggests rents are continuing to soar - especially in London.

Last October, homelessness charity Shelter warned that average private rents are unaffordable for ordinary working families in over half (55%) of local authorities in England.

The following month the largest lettings agent network LSL Property Services said rents in the private sector had hit a new record high leaving tenants struggling to keep up with payments.

The soaring cost of renting in London has prompted Mayoral candidate Ken Livingstone to look at introducing a London Living Rent which would control rents and reflect the increased costs of living in the capital. 

Research last month suggested that nearly half (45%) of private landlords have experienced rental arrears in the last three months, with 72% of those who have sought possession driven to do so by rent arrears.