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York leader calls for 'debate' on rent capping

Call from Cllr James Alexander following release of figures showing York’s housing benefit bill increased by 93% in the last decade.

A leading Yorkshire council leader has called for a ‘sensible debate' on rent capping after figures show York's housing benefit bill has increased by 93% in the last decade.

Financial details released by York show the housing benefit bill (HB) has soared by more than £21m from £23m in 2003/-4 to more than £45m in 2012/13.

Over the last eight years the private rented sector has been responsible for the largest share of increased HB spend, increasing by 136% or £7.7m with the number of residents renting privately roughly doubling to 1,501 people, the figures revealed.

There are more people in York claiming HB in the private rented sector, where rents average £177.46 a week, than housing associations at £90 a week.  Weekly rents for council tenants average £75.35.

Cllr James Alexander, leader of City of York Council's ruling Labour group said: York's housing benefit bill topped £45m for the first time last year, giving assistance to more than 11,000 people.

He explained the HB bill had increased by £5m since 2010 while the number of claimants had increased by 1,000.

‘This is largely taxpayer's money being given over to landlords to pay for high rents in York,' Cllr Alexander said.

‘York is the most difficult place in the north of England to get onto property ladder with some of the highest rents,' he added.

‘Surely it is about time we had a sensible debate about introducing rent capping to get this benefit bill down rather than attacking the recipients of housing benefit.

‘The housing market is broken and a better use of this money would be to pump prime housing construction,' Cllr Alexander added.

Jonathan Werran

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