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Private Tenants and ‘Perverse Incentives’ in the Housing Benefit Scheme

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  • P A Kemp

    (ESRC Centre for Housing Research and Urban Studies, Department of Urban Studies, University of Glasgow, Glasgow G12 8RS, Scotland)

  • P McLaverty

    (Department of Politics and Public Policy, University of Luton, Luton LU1 3JU, England)

Abstract

The authors examine whether private tenants receiving housing benefit have sought to take advantage of the perverse incentives which exist in the scheme. They look at recipients' reasons for moving to their present accommodation, whether they shopped around for accommodation, whether they moved upmarket to better accommodation, and whether they paid a premium for their accommodation compared with nonrecipients. It is concluded that, despite the perverse incentives, recipients had not generally moved to take advantage of the scheme, had shopped around for accommodation, and were not paying a ‘housing benefit premium’. Although some recipients were paying over the odds for their accommodation this reflected their poor position in the housing market compared with nonrecipients rather than a deliberate attempt to take advantage of the scheme.

Suggested Citation

  • P A Kemp & P McLaverty, 1998. "Private Tenants and ‘Perverse Incentives’ in the Housing Benefit Scheme," Environment and Planning C, , vol. 16(4), pages 395-409, August.
    • Handle: RePEc:sae:envirc:v:16:y:1998:i:4:p:395-409
    DOI: 10.1068/c160395
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    References listed on IDEAS

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    1. P McLaverty & P A Kemp, 1998. "Housing Benefit and Tenant Coping Strategies in the Private Rental Housing Market," Environment and Planning A, , vol. 30(2), pages 355-366, February.
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