80% rise in rent arrears is expected by housing providers
Social housing is preparing for an 80% rise in rent arrears due to government welfare reforms, reports study.
Baker Tilly, a law firm, found that the average level of rent arrears was 2.64% in the year ending 2013 but it was due to rise in 4.82% in 2014-15.
The findings are supported by Baker Tilly’s back office benchmarking which found that housing providers were budgeting for debts of 1.85% in the current financial year which is up from 0.86% last year, which is a rise of 115%, reports 24dash.
84% of respondents said that they had hired additional members of staff as a direct response to welfare reforms, and a further 11% said they were planning on taking on additional staff to support their tenants through the changes.
Data suggest that approximately 73% of housing association tenants are on at least one form of housing benefit.
Gary Moreton, Baker Tilly’s head of social housing said: “Social housing providers are devoting significant time and resource preparing for the potential impact of welfare reform, but there is still a great deal of uncertainty about what the future may hold for rent arrears and bad debts, and the type of housing stock required to meet tenant needs.”
Introduction The National Statement of Expectations for Supported Housing (NSE) was finally published on 20 October 2020, five years after the 2015 Comprehensive Spending Review suggested regulatory and oversight changes were needed, although in 2018 the government >>>
Support Solutions 5th National Housing Support & Social Care Conference 2014
Good organisation from beginning to end. Excellent keynote speaker. Relevant and important topics for discussion which were to everyone's advantage within the supported housing sector.
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