Home truths

A recent Shelter report on house rental levels, which suggested that prices in York were the highest in the region, has been seized upon by some Labour spokespeople as a rod with which to beat the government.
In reality they are trying to draw attention away from their threadbare local polices on housing.
They inherited from the last LibDem administration a level of homelessness in the City which was much improved from 2003. The provision of additional social housing units, including the first new Councils homes to be built in the city for 20 years, had played a part in dealing with this serious issue

Homeless figures for York. click to enlarge

The current controversy centres around the rent levels charged by private landlords. These have been restrained for several years by the maximum level of Housing Benefit (Local Housing Allowance) that can be paid. The maximum subsidy payable by the government is limited with the precise level dependant on local market conditions.
In 2010 the new Coalition government indicated that there would be a ceiling put on the maximum allowance payable for a property. The weekly maxima were:
• £250 a week for a one bedroom property (including shared accommodation)
• £290 a week for a two bedroom property
• £340 a week for a three bedroom property
• £400 a week for a four bedroom property
Average rent levels in York fall far below these limits. The government (correctly) argued that taxpayers should not have to, in effect, subsidise private landowners who could be raking in huge profits by exploiting local housing shortages.
For many years, there has been a maximum that the government would pay depending on family circumstances. Taking as an example a couple with 2 children who would be entitled to claim for a 3 bedroomed house. The maximum entitlement in York would be 137.31 per week. This is the same as in the Leeds area while the neighbouring Harrogate area is higher at £155.77 a week. Few families qualify for the full allowance.
The allowance is set by sampling the rent levels in the area. 655 rents levels were sampled in York. Prices ranged from around £100 to £200 per week. The rent levels were slightly higher in Harrogate.
There may be a case for updating these figures although professionals say there has been little change in rent levels for most types of properties in most areas of the City over the last couple of years. One exception is for properties near the Universities where rent levels of £90 per week for a single room in a shared house have been reported (a rip off which does require some action by local MPs)
A claim is being made is that York rental levels are now comparable with those found in London. This is nonsense with average rents in much of the capital being over £300 a week for 3 bedroomed properties. However rent levels in York now seem to be on a par with Harrogate.
In York at the moment the cheapest 3 bedroomed house available to rent is advertised at £156 per week (a house in Nursery Drive). So a family with a (very) low income would have to find £20 a week to rent this property.
In Harrogate a 3 bedroomed terraced house is advertised with a similar £156 price tag.
The real solution to the housing problems faced by those on low incomes is to increase the supply of social housing. Over 200 additional homes for rent were provided by the Council and Housing Associations in the City last year.
Typically the weekly rent on a 3 bedroomed Council House these days in York is around £80.
All Council homes had been modernised by the time that the Liberal Democrats left office locally in May.
NB. Brand new 2 bedroomed bungalows on Cornlands Road are available for private rent for £650 a month.

New bungalows to rent on Cornlands Road