Scrap bedroom tax say majority of UK public

New research has revealed the groundswell of public opinion is growing against the bedroom tax with almost three in five people (59%) saying that the Government should abandon the policy entirely.

A ComRes poll of more than 2,000 adults, conducted on behalf of the National Housing Federation this month, shows public opinion is shifting further against the policy as new evidence reveals the bedroom tax is pushing many vulnerable and disabled people into debt. Released on the last day of the National Housing Federation’s annual conference, the poll reveals that the bedroom tax has the potential to alienate a significant proportion of the electorate:

·         Four fifths (79%) of people who intend to vote Labour in the next election believe the Government should abandon the bedroom tax, while five in six (83%) potential Labour voters say the policy shows the Government is out of touch.

·         Two thirds (65%) of potential Liberal Democrat voters and more than a third (34%) of people who intend to vote Conservative in the next election say that David Cameron should abandon the bedroom tax entirely and think of other ways to save money.

·         Opposition to the bedroom tax has grown over the last few months, with 59% of the general public now agreeing the bedroom tax should be abandoned – up from 51% of the public in April.

The polling results come just two days after new data by the Federation suggested that half of families hit by the bedroom tax were pushed into debt in the first three months of the policy. The survey of 51 housing associations around England, carried out by the National Housing Federation, found that 51% of households affected by the bedroom tax (32,432 households) were pushed into rent arrears in the first three months of the controversial policy.²

National Housing Federation Chief Executive David Orr said:

“This public opinion poll must act as a wake-up call to both the Government and the Opposition. The general public see that the bedroom tax is a disastrous policy which is causing real hardship for people up and down the country. Families are spiralling into debt and with winter just around the corner they are facing terrible decisions of whether to pay the bedroom tax or cut back on essentials such as food and heating. It’s hitting the most vulnerable in our society the hardest – two-thirds of those facing the cut are disabled. And on top of that the majority have no option of moving because there is a chronic shortage of smaller homes for them to move in to.

“Potential Labour voters in particular believe the bedroom tax shows the Government is out of touch with the lives of real people. We need a commitment to repeal the bedroom tax before yet more damage is done and tens of thousands more people spiral into debt as a result of this ill-conceived policy risk the roofs over their heads.”

Meanwhile, nearly nine out of ten (87%) members of the public agree that people who need a spare room for sick or disabled family members should be exempt from the bedroom tax. According to the Government’s own estimates, 420,000 disabled people across the country are being hit by the bedroom tax.

More than two thirds (68%) of the general public say no-one should lose Housing Benefit unless they refuse to move into suitable smaller accommodation. Research by the National Housing Federation indicates that there is a huge shortage of smaller homes for people affected by the bedroom tax to downsize into. In March, the Federation estimated that although 180,000 households were under-occupying two bedroom social homes, only 85,000 one-bed social homes became available in 2011-12.²

Lack of affordable housing puts pressure on parents

The lack of affordable housing in Britain is increasing the emotional and financial burden on parents as their grown-up children can no longer afford to move out, new research has revealed.

A ComRes poll of more than 1,100 parents with adult children aged 21 to 40, conducted on behalf of the National Housing Federation, found that:

• Three out of ten parents (27%) have at least one adult child aged between 21 and 40 living at home.
• Two-thirds (66%) of parents with at least one adult child living at home say they are doing so because they simply can’t afford to move out.
• Nine out of ten (89%) parents with grown-up children believe there is not enough housing in Britain that people can afford.

This is increasing pressure on family life. While a quarter (26%) say having grown-up children living at home had brought their family closer together, other parents were not so positive. A fifth (23%) say having a grown-up child living at home has caused them stress and a further fifth (18%) say it had caused family arguments. Worryingly, one in ten (8%) parents say having a grown-up child living at home has caused them to fall into debt.

 

Parents in higher income brackets are more likely to have at least one grown-up child living at home. More than a third (36%) of parents with grown-up children with a household income of more than £30,000 have at least one of their adult children living at home, compared to a fifth (21%) of parents with adult children with a total household income of £30,000 or less.

 

More than a third (41%) of parents with at least one adult child living at home say they are doing so because the cost of living away from home is too high, while a further fifth (22%) say they are living at home while they save up for a deposit. 

 

Unless more homes are built, the situation soon could become even bleaker for parents with children in their twenties and thirties. First-time buyer house prices are set to increase by 42% by 2020, while rents in 2020 will be 46% higher that they are today. That means parents could be forced to look after their grown-up children for even longer as they struggle to save up enough money to get a place of their own. 

Price of first time buyer house to soar 42% by 2020 warns report

House prices prices for first time buyer homes  in England will soar by 42% by 2020 claims a report.

The National Housing Federation warns of the "colossal strain" facing the generation born in the 1990 with rents tipped to rise an an even faster rate.

Many will remain trapped in their parents' homes as property prices continue to outstrip earnings, warns the NHF.
It predicts that 3.7 million young people will be living with their parents by 2020, as the rate of housebuilding fails to keep up with the rising population.

The NHF report states: "By 2020 the price of a first-time buyer's home will increase by 42% to £245,165. Although wages for 22- to 29-year-olds will increase by 36% by 2020, this poses a huge challenge for those wishing to be homeowners.
"Low-earning young people would have to spend 16 times their average wage just to buy a home."

Rents will be driven even higher as young adults are priced out of the property market.
 "NHF research shows that private rents are likely to be broadly stable through 2013, but could increase sharply, by about 6% a year, between 2015 and 2020 as interest rates and house prices rise. In 2020, rents are expected to be 46% higher than today.
"But when the new flood of young adults born in the noughties starts university or a new job, they could push rents even higher in a country already chronically short of decent housing."

This latest report follows a forecast from Savills last week that house prices prices in the UK would rise 18% by 2017.

For House Price UK homepage click here.

Rising house prices harming economic growth say employers

Rising rents and house prices are hitting economic growth by making it difficult to recruit, warn companies.

Nearly four in five employers questioned across England believe that a lack of affordable housing is stalling economic growth in local communities, the National Housing Federation found.

This comes as prices in areas like London soar above pre crash levels - pricing many people out of the market.

Some 79% of more than 1,000 managers surveyed said that building more homes would stimulate the local economy and 72% thought it would encourage more customers into their area.

Around 78% of managers also agreed that house prices are a "problem" in their local area and 58% said building more homes would help staff recruitment and retention.

National Housing Federation director Gill Payne said: "Our economic recovery is being held back because there aren't enough homes in England today, and this lack of homes has pushed up prices and rents beyond people's reach.

"As a result, businesses are finding it tough to attract workers and expand because many people can't buy a home or would struggle to pay high rents. If things don't change, employers will simply move - potentially out of the country - taking away desperately needed jobs."