by Lamiat Sabin
PRIVATE landlords pocketed £9.3 billion in housing benefit last year, according to a report published yesterday, almost double the amount they trousered a decade ago.
A rise in people renting privately receiving the benefit and the higher costs of renting have both contributed to the rise, according to the National Housing Federation.
Chief executive David Orr said it was “madness” that billions in public funds are used to subsidise private landlords instead of investing in much-needed truly affordable homes.
About £4.6bn in benefit was paid to private landlords in 2006 and the figure has since risen by 42 per cent, according to analysis by federation, which represents housing associations.
An extra £1,000 is spent every year on each family renting privately and claiming housing benefit, a £5,705 cost compared with £4,638 for those in the social rented sector, the report said. In London, £3,300 more is spent every year on each family claiming in the private sector.
The government could save £1.5bn a year if all those housed in the private rented sector lived in affordable housing, according to the federation.
“It is madness to spend £9 billion of taxpayers’ money lining the pockets of private landlords, rather than investing in affordable homes,” Mr Orr said.
“Housing associations want to build 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.”
A government spokesman said ministers had taken action to reduce the housing benefit bill and that the amount going to private landlords has fallen since 2012 — but he did not detail how.
lamiatsabin@peoples-press.com