News

CUTTING HOUSING BENEFIT REDUCES PROPERTY PRICES

  • Published Date: 23 March 2016

 House prices fall when Housing Benefit is cut. That is the central finding of research by Nils Braakmann and Stephen McDonald, to be presented at the Royal Economic Society's annual conference in Brighton in March 2016.

Their study looks across local authorities to see how house prices were affected by changes to Housing Benefit made in June 2010 to cut the amount that private renters could claim. They find that the more people in an area who received Housing Benefit, the more house prices fell: if 1% more of the local population claim Housing Benefit, average prices fell by around 0.5%.

Page Options