Changes to the housing benefit system could see the UK’s flatsharing population grow by 9.4%, according to flatsharing website, easyroommate.co.uk.
The age threshold for the Shared Room Rate (SRR) in Housing Benefit is due to increase from 25 to 35 from April 2012 following George Osborne’s announcement in the comprehensive spending review.
According to Department of Work and Pensions statistics, approximately 166,930 are currently eligible for the SRR benefit. The reform will mean 260,330 Housing Benefit recipients between 25 and 35 years old will no longer qualify for their own flat or house, but would have to share accommodation instead.
Currently, the UK’s flatsharing population stands at 2,765,000. If all those eligible in the new age group took the benefit and moved into shared rented homes, this could rise to 3,025,330 – an increase of 9.4%.
The average UK rent for a flatsharer stands at £348 per month. Easyroommate.co.uk calculates that a 9.4% increase in the number of flatmates competing for the same level of accommodation could push rents as high as £381pcm – on top of the current upward pressure on rent from indebted graduates and deferring first-time buyers.
Jonathan Moore, director of easyroommate.co.uk, said: “The private rental sector and the wider flatsharing market is already creaking under the strain of matching the demand for accommodation by thousands of frustrated first-time buyers. The flood of new flatsharers onto the market is going to drive up the level of competition for rooms even further. With public spending cuts squeezing families financially
