The Chancellor's decision to reduce social rents by
1% a year for four years from April will cost local authorities and
housing associations £2.3bn by 2019-20, according to the Institute for Fiscal
Studies.
Central government will pocket £1.7bn of the savings through reduced housing benefit. The rest will be shared among the 1.6m social tenants who are not on housing benefit.
The IFS said that the group "will gain an average of £420 per year". The report warned that "by reducing the annual rental income of social landlords, the cut in social rents could reduce the amount of new housing supply".
The Office for Budget Responsibility has estimated that 14,000 fewer social sector properties will be built between now and 2020-21 as a result.
Central government will pocket £1.7bn of the savings through reduced housing benefit. The rest will be shared among the 1.6m social tenants who are not on housing benefit.
The IFS said that the group "will gain an average of £420 per year". The report warned that "by reducing the annual rental income of social landlords, the cut in social rents could reduce the amount of new housing supply".
The Office for Budget Responsibility has estimated that 14,000 fewer social sector properties will be built between now and 2020-21 as a result.
The Times, Pages: 44-45 Daily
Mirror, Page: 26
