Zoopla data analysis cited by UK Chancellor of the Exchequer

The UK Chancellor of the Exchequer cited Institute of Fiscal Studies analysis of Zoopla data - held under licence by the Urban Big Data Centre - as influencing his decision-making in his annual Autumn Statement.

The IFS’s research paper, Housing quality and affordability for lower-income households examined patterns of housing tenure, quality and affordability for people on lower incomes.

The key findings were:

• Facing higher housing costs, renters are considerably more likely than owner-occupiers to have low living standards on a variety of measures.  

• A steadily growing fraction of low-income households are in the private rented sector, while the share in social housing has declined, as has (in more recent years) the share who own their own home. Younger generations of low-income individuals are now especially likely to be renting privately.

• As well as the private sector having higher costs for tenants, the quality of homes, at least for low-income families, is worse.

• In the wake of the pandemic, the local housing allowance (LHA) rates which cap maximum housing benefit entitlements were increased to the 30th percentile of local rents. At that point, 23% of private rental properties listed on Zoopla were affordable for housing benefit recipients. However, LHA rates then remained frozen in cash terms while rents for new lets rose by over a fifth on average, resulting in just 5% of private rental properties being affordable for housing benefit recipients in 2023Q1. This rapid decline in affordability was seen across all parts of the country.

• A declining share of properties being affordable to housing benefit recipients affects the relative quality of those that are affordable.

Access to Zoopla data informed the report as co-author, Tom Waters, Associate Director at the Institute of Fiscal Studies, explains: “We used the Zoopla data to determine what fraction of properties would be 'affordable' for someone on housing benefit - meaning what fraction are priced below the maximum amount one can get in housing benefit over time.”

Speaking in his 2023 Autumn Statement, Chancellor Jeremy Hunt said: “…because rent can constitute more than half the living costs of private renters on the lowest incomes, I have listened closely to many colleagues, as well as the Institute for Fiscal Studies, the Resolution Foundation, Citizens Advice UK and the Joseph Rowntree Foundation who said unfreezing the Local Housing Allowance was an ‘urgent priority’.

“I will therefore increase the Local Housing Allowance rate to the 30th percentile of local market rents. This will give 1.6 million households an average of £800 of support next year.”

Richard Donnell, Executive Director at Zoopla said: "Zoopla is delighted that our data is being used to support academic research into important topics facing policymakers and practitioners. We are pleased to support the Urban Big Data Centre and their partners with further analysis of the housing market to shape and inform better policies at a country and localised level."

The IFS report generated considerable media coverage including The Guardian and The Independent newspapers.

Project overview

Housing quality and affordability for lower-income households examined patterns of housing tenure, quality and affordability for people on lower incomes.

Zoopla data, held under licence by UBDC, was used to determine what fraction of properties would be 'affordable' for people on housing benefit.

References

Institute for Fiscal Studies

Full paper: Housing quality and affordability for lower-income households

Media coverage: The Guardian and The Independent newspapers.

Request access to Zoopla data held by UBDC.

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