Rishi Sunak yesterday delivered his Spring Statement, in the midst of soaring inflation and energy price rises.

The Chancellor made heavy reference to the ongoing war in Ukraine, warning that situation is likely to worsen the state of the already troubled British economy.

The UK’s housing sector has been quick to react to Sunak’s statement.

Rick Henderson, CEO at Homeless Link, said:  “Today Rishi Sunak admitted that vulnerable households need targeted support to get through the coming few months of an unprecedented cost of living crisis. But unfortunately, by focusing on tax cuts for those in work, the measures announced don’t go anywhere near far enough to provide the stability the most vulnerable households need to avoid being pushed into homelessness.

“While Sunak announced a range of policies to help people in work in the short-term, he has not listened to calls from across the political spectrum to invest in our struggling welfare system, and has almost entirely excluded those not in full-time work from consideration. Rather than relying on temporary fixes like the Household Support Fund, the Government should seek to make our welfare system fit for purpose by unfreezing LHA rates and restoring the Universal Credit £20 uplift to help those on low-incomes stay afloat and lead dignified lives. The £40 million cut to the Discretionary Housing Payment announced last week will not make this any easier.

“When the cost of living increases, homelessness does too. Those not in work will have to navigate the coming months with the support of a welfare system still reeling from recent cuts and continued shortages of homes for social rent. This could lead to a wave of homelessness and brings the Government’s target of ending rough sleeping by 2024 into serious question.”

Alicia Kennedy, Director of Generation Rent, said: “We are in a dangerous moment with millions about to be plunged into fuel poverty and people already in poverty facing desperate choices between heating and eating. When inflation is running at 7.4%, the Chancellor should have targeted help towards those least able to manage, by raising benefits at the same rate and making sure Local Housing Allowance covers rising rents. The higher National Insurance threshold will help many private renters but not our most vulnerable neighbours.

“Taking the National Insurance and income tax changes together, the Chancellor is stacking the economy against private renters who have to work for a living. While the Health and Social Care Levy will cancel out the planned income tax cut for workers, landlords will be better off because they they don’t pay National Insurance on rental income. If he wants economic growth, the Chancellor should be shifting taxation from work to property wealth, and encouraging investment in more productive parts of the economy.

“The VAT cut on energy efficiency measures is welcome but until the government acts on its promises to raise minimum energy efficiency standards for landlords and improve security of tenure, renters won’t feel the benefit.”

Matthew Walker, chair of PlaceShapers, said: “Chancellor Rishi Sunak recognised the importance of fairness in meeting the cost-of-living crisis. But it impacts those on the lowest incomes most. There are millions for whom the crisis will remain a terrible, frightening reality.

“The heartbreaking choice between heating and eating reflects the reality of spiralling energy bills. The VAT relief on green energy measures must include housing associations as we are at forefront of delivering retrofit. This allows us to do more, quicker, to give people warm homes, help reduce energy demand and meet the UK’s net zero ambition.

“We welcome the positive measures in the statement but more help is needed from the government for the fairness they are keen to deliver.”

St Mungo’s Chief Executive, Steve Douglas CBE, said: “It is good to see today’s budget recognising the cost of living crisis, which seriously threatens to push more people into homelessness – both those sleeping rough for the first time, and those returning to the streets.

“We welcome the doubling of the Household Support Fund, as this will give local authorities more power and means to support vulnerable households in their areas.

“However, to truly prevent those living on a knife edge from becoming homeless, the Government must look towards increasing benefits, which was a key recommendation of the Kerslake Commission on Rough Sleeping and Homelessness.

“At the very minimum, increasing benefits to be in line with inflation will make a significant contribution to keeping people off of the streets and in secure tenancies, which is fundamental to achieving our shared commitment to ending rough sleeping by 2024.”

Torsten Bell, Chief Executive of the Resolution Foundation, said: “In the face of a cost of living crisis that looks set to make this Parliament the worst on record for household incomes, the Chancellor came to the dispatch box yesterday promising support with the cost of living today, and tax cuts tomorrow. Significant measures were announced on both counts, but the policies do not measure up to the rhetoric.

“The decision not to target support at those hardest hit by rising prices will leave low-and-middle income households painfully exposed, with 1.3 million people, including half a million children, set to fall below the poverty line this coming year.

“And despite the eye-catching 1p cut to income tax, the reality is that the Chancellor’s tax changes mean that seven-in-eight workers will see their tax bills rise. Those tax rises mean the Chancellor is able to point to a swift fiscal consolidation and significant headroom against his fiscal rules.

“The big picture is that Rishi Sunak has prioritised rebuilding his tax-cutting credentials over supporting the low-to-middle income households who will be hardest hit from the surging cost of living, while also leaving himself fiscal flexibility in the years ahead. Whether that will be sustainable in the face of huge income falls to come remains to be seen.”

Ben Beadle, Chief Executive of the National Residential Landlords Association said: “We welcome the decision to scrap VAT on energy efficiency measures. However, it remains disappointing that the Government has again failed to explain what will be required of the rental sector when it comes to energy improvements.  The sector needs clarity as a matter of urgency.

“More broadly, as renters, along with all others, face a cost-of-living crisis, the Chancellor should have reversed his decision to freeze housing benefit rates. Without this, those relying on the benefit will find it increasingly difficult to afford their rents.”