Chapter 5 discusses housing for low-income groups. Households face a wide dispersion of housing costs and data for the UK and many other countries show that those on low incomes are more likely to spend a high percentage of their incomes on housing in the absence of support. Low-income households are also more heavily concentrated in the rental housing sectors. The chapter, therefore, concentrates on the measures that have been implemented to support housing and the extent to which the problem of high rents is offset by income related subsidies. The chapter also stresses that low-income affordability cannot be considered in isolation from other parts of the housing market and the economy more widely, notably fiscal and monetary policies and changes in the income distribution, and policy has generally taken insufficient account of the interlinkages.
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