Raising rent supplement is a tricky solution to a housing shortage for a few reasons. Firstly, if you increase purchasing power where there is scarcity it will likely serve to drive up prices generally.
Think about the following scenario, Joe RentSupplement is trying to rent a home that Jim PrivateRenter also wants, what it boils down to is private renters versus publicly funded renters, and in that mix one now has higher purchasing power.
What is the one simple thing the privately funded renter can now do? Raise their price, this is how they outbid the publicly funded renter, Joe RentSupplement is still out of a place to call home.
What are the solutions? More public housing – but perhaps not with a ‘for the rest of your life‘ tenancy agreement forming the basis of it. The other thing would be to allow increases for tenancies in situ. This last point cannot be overlooked.
Many of the new homeless come from the private rented sector. This occurs when the prices they are asked to pay are beyond their affordability, far …