Crisis reveals 31% of surveyed associations turn down tenants after pre-tenancy affordability checks

It also highlighted tensions between housing associations and councils over applicants having their tenancies refused after PTCs, stating: “Local authorities in England have increasingly complained about housing associations turning down nominations of homeless and other applicants on the basis of PTCs,
particularly on grounds of affordability or unmet support needs.

“However, housing associations have raised the issue of insufficient information being provided to them by local authorities, expressing frustration that local authorities often knew the situation of applicants but did not share this information.”

In addition, nearly a quarter of the 68 housing associations surveyed revealed households below a certain income are sometimes excluded from the housing register they used, including both local councils and their own lists.

Applicants with a history of anti-social behaviour, however, were most likely to be barred from registers even when support was in place. 

The report highlighted the national shortage of social housing as the “most pressing structural challenge” affecting how social housing lets are managed, with those interviewed by researchers likening the allocation process to “rearranging the deckchairs on the Titanic”.

Nearly three-quarters of the landlords surveyed who operate a choice-based lettings system felt the number of properties did not meet demand. 

“Some felt the scale of housing need in their area [was] so overwhelming [that it called] into question whether their allocations system could meaningfully prioritise between applicants any longer,” the report said.

The charity is now recommending that the government bring in a Scottish-style system for social housing tenancies, highlighting statistics that show more than half of social housing lets above the border are to people experiencing homelessness, compared to just over a quarter in England.

The report points out that councils are able to exclude some people from their registers due to laws brought in since 2011, while housing associations in England are not legally obligated to rehouse homeless households.

Crisis also urged the government to look at the household benefit cap and bedroom tax, and make sure benefits are in line with the cost of living, as well as making sure it delivers on its social housing building targets.

Matt Downie, chief executive of Crisis, said: “This data proves what we’ve been hearing for years.

“Working with people who use our services, we know that people can be excluded from accessing a social home because their incomes are too low to meet the necessary criteria.

“The fundamental aim of social housing is to provide a safe and stable home for people on the lowest incomes. If people cannot afford social housing, where do they go?”

He added: “The reckless depletion of our social housing stock, alongside cuts to state support, has put English housing associations into an impossible position where they are forced to refuse access to people in precarious, vulnerable situations.

“Homelessness is surpassing record levels. Its costs to people, communities and local authorities are untenable. As a society we should be alarmed that we have got to this position.

“Ministers have to look at how we can better manage existing stock, and help councils get more stock into the system as soon as possible. This situation has to change, now.”

Rosie Worsdale, senior policy advisor at the Joseph Rowntree Foundation, said: “This important new research from Crisis highlights how our benefits system is failing to ensure that everyone can afford this essential – and is leading to perverse outcomes for people with the most acute housing need.

“Increasing the supply of new social housing is essential to prevent this kind of rationing and ensure everyone who needs a social home can access one.

“Meanwhile, introducing a protected minimum floor in Universal Credit would limit the amount that could be deducted from benefit payments by the benefit cap, which would be a cost-effective step the government could take quickly to help people cover essentials and improve affordability.”

A spokesperson for the Ministry of Housing, Communities and Local Government said: “The housing crisis we inherited has left us without the social and affordable homes we desperately need, pushing people into housing insecurity and contributing to record levels of homelessness.

“We’re taking decisive action to fix this by investing £1bn in tackling homelessness, and building the biggest boost to social and affordable housing in a generation – backed by a record £39bn investment.

“We will set out further action to tackle these issues in our homelessness strategy, which we will publish later this year.”

Inside Housing has asked the National Housing Federation for a response.