Britain’s rental crisis shows how housing benefit claimants struggle

Dec 4 (Reuters) – Airbnb will process payments between hosts and guests for the European Union through Luxembourg as of 2020, as the home rental giant prepares for Britain’s departure from the bloc, Luxembourg for Finance said on Wednesday.

(Reporting by Aniruddha Ghosh and Noor Zainab Hussain in Bengaluru; editing by Carolyn Cohn) Payments sector giant PayPal Holdings, Amazon Payments, Rakuten and Alipay have picked Luxembourg as their hub to serve the European Union, Luxembourg for Finance said.

Airbnb, which was founded in 2008, set up a hub in Luxembourg at the end of last year and has now been granted a payment institution license, Luxembourg for Finance, a body which promotes the country’s financial sector, said.

He is included in the research not because he is responsible for any housing policy, but because he has a significantly higher percentage of housing benefit claimants living near his constituency office who can afford local rents.

It looked at homes available near both Boris Johnson and Jeremy Corbyn’s constituency offices and those of other top MPs with responsibility for housing or benefits and comes just ahead of a General Election where Britain’s housing crisis is a hot political topic.

Housing benefit is calculated using what is known as Local Housing Allowance – or LHA – which varies around the country and is based on what a person would ‘reasonably’ need to rent in the area where they make the benefits claim.

‘Rents are paid in advance, whereas housing benefit is paid in arrears. Therefore, with such a shortage of rental accommodation, landlords and agents will naturally choose a tenant who can pay the rent when it is due, rather than a tenant who is always a month in arrears.

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The figures show there were no one-bed properties or studios to rent that cost less than the Local Housing Allowance within a three mile radius of Boris Johnson’s Uxbridge and South Ruislip constituency office, which has a postcode of UB8 1PH.

The research also looked at the number of affordable rental properties near the constituency offices of Robert Jenrick, Secretary of State for Housing, sewa tanaman Communities and Local Government, and Ester McVey, Minister of State at the Ministry of Housing, Communities and Local Government.