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Housing Benefit Payments to Private Landlords Double in a Decade

Figures released by the National Housing Federation reveal that Housing Benefit payments made to private landlords have risen sharply in the last few years. The NHF blames the rising cost of renting property, along with an increase of tenants forced into the private housing sector.

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Private Rental Housing More Expensive £4.6 Billion was paid to private landlords in 2006, but since then the cost has shot up by 42%. It costs around £1,000 per year more to house families in the private sector, but in London, this figure rises to around £3,300. The National Housing Federation believes the government should be spending the money on building affordable housing instead.

“Housing associations want to build the homes the nation needs. By loosening restrictions on existing funding, the government can free up housing associations to build more affordable housing at better value to the taxpayer and directly address the housing crisis,” said David Orr from the NHF.

The government disagrees.

“The reality is we have taken action to bring the housing benefit bill under control, and since 2012 the amount going to private sector landlords has actually been falling – something which the National Housing Federation fails to recognise,’ a government spokesman was quoted as saying.

“We are also committed to building the homes this country needs and investing £8billion to build 400,000 more affordable homes.”

‘Right To Buy’ Scheme 1.3 million housing association tenants will soon have the right to buy their homes at large discounts. Some of these properties will then be sold on to landlords.


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