A property shortage and stagnant wages are forcing more and more working people to apply for help with housing costs, according to a new study.
The West Midlands has seen a 99 per cent rise in working people claiming housing benefit since 2009 and also the smallest increase in new businesses.
This suggests the local economy is struggling, even though economic figures show the UK is climbing out of the economic downturn, according to the National Housing Federation.
A study by the campaigning group Home Truths reports private rents and house prices in the region are expected to rise by 39 per cent and 21 per cent respectively by 2020, which could result in severe financial consequences for taxpayers.
The report warns England is extremely short of housing and the gap between supply and demand is widening.
House building numbers are falling. In 2012-13, 107,000 new homes were built – 11 per cent less than in 2009.
Gemma Duggan, West Midlands external affairs manager for the National Housing Federation, said: “We hear a lot about ‘making work pay’, but a decent job won’t even cover the cost of a home in parts of the West Midlands.
“With rising rents and house prices, the situation looks set to get even worse. Billions of pounds of taxpayers’ money is wasted, lining the pockets of private landlords, when it could be better spent building homes people can afford.
“Relying on the private rented sector is a costly sticking plaster rather than a solution.
“In towns and cities pulling away from the recession the dysfunctional housing market is burning the fingers of many.
“Hard-working families are spending more and more of their income on a home and many could be forced to move – away from jobs, schools and relatives.”
