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Rent arrears, in socila housing, to become new normality?
grizzly1911
Posts: 9,965 Forumite
Says Tony Wilson, a former civil servant who worked on housing policy,
Where will these costs end up? In council tax bills?
One in three council tenants affected by a recent cut to housing benefit has fallen behind on rent since the policy took effect, figures suggest.
The TUC's False Economy campaign made Freedom of Information requests to all of Britain's councils; 114 responded.
Data revealed 50,000 tenants had fallen into arrears since 1 April 2013 when the housing benefit changes came in - a move critics called the "bedroom tax".....
The new housing benefit bill is estimated to have affected some 660,000 households - roughly a third of social sector claimants.
The government has predicted that savings to the taxpayer will amount to £505m in 2013-14, and £540m the year after....
False Economy's report is the biggest study of the effects of the benefit change carried out so far.
None of the 50,000 tenants were in arrears prior to the benefit changes....
The National Housing Federation has also carried out a survey looking at the numbers of tenants in arrears.
It found that a quarter of households affected by the cut have fallen behind in their rent for the first time ever - 11,000 out of 44,000 households were in arrears according to data given by 38 of England's housing associations.
The National Housing Federation's Chief Executive David Orr, called the figures "damning".
"What more evidence do politicians need that the bedroom tax is an unfair, ill-planned disaster that is hurting our poorest families? There is no other option but to repeal," he said.
One of the central criticisms of the policy is that there are not enough one or two bedroom homes for people to move into.
The National Housing Federation estimated in March that although 180,000 households were under-occupying two bedroom social homes, only 85,000 one-bed social homes became available in 2011-2012.
It is one of the reasons why Tony Wilson, a former civil servant who worked on housing policy, thinks that rent arrears could become the new normal in social housing.
Now head of policy at Centre for Economic and Social Inclusion, he said that research shows most tenants are unlikely to move out of their homes - instead they will deal with the cuts.
"Essentially people either reduce what they spend, or they find work. The problem is that even where people are looking for work, they're not finding it.
"I think, going forward, this is going to be a permanent problem for social landlords and for Local Authorities, of increasing rent arrears. To some extent, they're going to have to put up with that, they're going to have to lump it.''
http://www.bbc.co.uk/news/business-24149763Liam Byrne suggested that the majority of those affected are have disabilities - if I heard him right this morning.
Where will these costs end up? In council tax bills?
One in three council tenants affected by a recent cut to housing benefit has fallen behind on rent since the policy took effect, figures suggest.
The TUC's False Economy campaign made Freedom of Information requests to all of Britain's councils; 114 responded.
Data revealed 50,000 tenants had fallen into arrears since 1 April 2013 when the housing benefit changes came in - a move critics called the "bedroom tax".....
The new housing benefit bill is estimated to have affected some 660,000 households - roughly a third of social sector claimants.
The government has predicted that savings to the taxpayer will amount to £505m in 2013-14, and £540m the year after....
False Economy's report is the biggest study of the effects of the benefit change carried out so far.
None of the 50,000 tenants were in arrears prior to the benefit changes....
The National Housing Federation has also carried out a survey looking at the numbers of tenants in arrears.
It found that a quarter of households affected by the cut have fallen behind in their rent for the first time ever - 11,000 out of 44,000 households were in arrears according to data given by 38 of England's housing associations.
The National Housing Federation's Chief Executive David Orr, called the figures "damning".
"What more evidence do politicians need that the bedroom tax is an unfair, ill-planned disaster that is hurting our poorest families? There is no other option but to repeal," he said.
One of the central criticisms of the policy is that there are not enough one or two bedroom homes for people to move into.
The National Housing Federation estimated in March that although 180,000 households were under-occupying two bedroom social homes, only 85,000 one-bed social homes became available in 2011-2012.
It is one of the reasons why Tony Wilson, a former civil servant who worked on housing policy, thinks that rent arrears could become the new normal in social housing.
Now head of policy at Centre for Economic and Social Inclusion, he said that research shows most tenants are unlikely to move out of their homes - instead they will deal with the cuts.
"Essentially people either reduce what they spend, or they find work. The problem is that even where people are looking for work, they're not finding it.
"I think, going forward, this is going to be a permanent problem for social landlords and for Local Authorities, of increasing rent arrears. To some extent, they're going to have to put up with that, they're going to have to lump it.''
http://www.bbc.co.uk/news/business-24149763Liam Byrne suggested that the majority of those affected are have disabilities - if I heard him right this morning.
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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Comments
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what happens if you fall behind on your rent in social housing?0
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DIdn't the government also introduce a change where rent was paid to the tenant to pass on to landlord instead of paying landlord direct?
If so, could this not be the main cause?0 -
rent arrears have always been around in social housing? My wife knows of someone that had racked up about 2 years worth at one point
Their punishment was that they couldnt move to a bigger house, to home their every increasing family (2 parents and now 5 kids) until it was settled
Fortunately, the father decided that squeezing 7 into a small 2 bed was too much, and went qand got a job and paid the debt down0 -
Loughton_Monkey wrote: »DIdn't the government also introduce a change where rent was paid to the tenant to pass on to landlord instead of paying landlord direct?
If so, could this not be the main cause?
Must be the case, else how else would there be arrears?0 -
Should be evicted like any other tenant.
Cannot see why SH is treated as a special case.0 -
Should be evicted like any other tenant.
Cannot see why SH is treated as a special case.
If they are eviccted through not having the money to pay the rent what is the LAs responsibility to re home them especially if there are children or disabled family members involved?
Displaced form one home to more expensive B&B accommodation - doesn't really resolve the problem just displaces it."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
How about we reintroduce the debtors prisons? Eviction frees up a house. Imprisonment solves their housing problem. Still used in UAE, and several USA States I believe.0
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Loughton_Monkey wrote: »How about we reintroduce the debtors prisons? Eviction frees up a house. Imprisonment solves their housing problem. Still used in UAE, and several USA States I believe.
"What are you in for?"
"Wonga"
"Figures."0 -
Charge less rent. Then there won't be arrears.
0 -
http://www.bbc.co.uk/news/uk-politics-24182448
Whether they will get the chance to is another question.
Conservatives say the bill has got to come down.,maximum savings budgeted at 0.5m from a £20m budget which is rising quickly. Actual savings is anyones guess may actually increase costs according to the NHF.
Whilst it dents it continued HPI and greater reliance on BTL with a growing housing shortage doesn't bode well."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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