Figures released by the Institute for Fiscal Studies (IFS) back up evidence given to the Department for Work and Pensions (DWP) Commons Committee by Propertymark on 28 June 2023. Head of Policy and Campaigns Timothy Douglas warned MPs of vulnerable tenants being priced out of the market.
The IFS report outlines that given 38% of private renting households (2 million) are on housing benefits, this sharp reduction in affordability could lead to demand for affordable properties far outstripping supply.
This is the lowest level on record. While there is some variation between the nations and regions, this decline in affordability has been felt across Britain, with the share of properties that are affordable for benefit claimants ranging from 2.5% in Wales to 6.9% in the North East.
Douglas took the opportunity to present the key issues to the DWP that Propertymark members have brought to the fore, stating the demand for rented property continues to outstrip supply in a highly competitive market. Evidence from a survey of Propertymark members shows that demand is up 24% in April 2023 compared to the previous year.