Housing associations still at risk due to welfare reforms
- 10 Sep
A major rating agency has warned that welfare reforms are still posing a credit risk for housing associations despite their resilience in coping with the changes thus far.
Moody's have issued a warning that says "the worst may lie ahead" for landlords when it comes to welfare reforms affecting their finances, reports Inside Housing.
Moody's said that associations have proved resilient to welfare reforms, including the bedroom tax and benefit cap, to date. It said: "In general, arrears, voids and bad debts have been lower than projected in housing association business cases over the past two years."
It is warning that universal credit is "the hardest hitting reform measure" which has yet to be fully implemented. It's warned that the payment of benefit for housing costs to tenants "is likely to increase the risk of non-payment of underpayment of rent".
Roshana Arasaratnam, Moody's vice-president, said: "While housing associations [have] so far proved resilient to the shake-up in the welfare sector, the worst may still lie ahead. Bad debts and voids could undermine cash flows and potentially diminish operating margins if housing associations fail to correctly anticipate an increase in arrears."
What do you think of this? Tweet us your comments @suppsolutions
Image source: http://www.freeimages.com/photo/1428066
Related articles
- 08 Nov
NHS BOSS SETS OUT A CASE FOR CASH BOOST
The speech by Mr Stevens at the NHS Providers' annual conference of health managers is being made at the time when three reputable health think-thanks- the Health Foundation, the King's Fund and the...
- 09 Jun
THERESA MAY PLEDGES TO REPLACE THE MENTAL HEALTH ACT 1983
According to Ms May, the new bill would introduce the following:According to the Tories, the proposals were described as the biggest change to mental health treatment law in over 30 years.Ms May...
- 30 May
THE PRESENT FIRST PRIME MINISTER OF SCOTLAND IS TO PLEDGE AGAINST ANY PLANS TO PRIVATISE THE NHS
It is also expected that Sturgeon will do the following as proof of her party's commitment to fighting against further austerity:Sturgeon said this before Tuesday's manifesto launch:"While the polls...
- 17 Mar
402 MILLION POUNDS WILL BE INVESTED IN COUNCILS WITH THE GREATEST HOMELESSNESS DEMAND FROM APRIL 2017
Presently, funding is only used for homeless households and not for the prevention of homelessness in the first instance.The funding by the Department for Communities and Local Government is set to...
- 15 Mar
RULES AROUND PERSONAL INDEPENDENCE PAYMENTS MAY CHANGE ON THURSDAY
Ministers have advised chief executives of over 30 charities which claimed that people will be left without vital financial support, to restrict access to a disability benefit.The Disability Benefits...
- 06 Mar
THE GOVERNMENT HAS BEEN URGED BY THE BMA TO INCREASE HEALTH SPENDING BY 10 BILLION POUNDS
This increase in health spending to a proportion of GDP that matched that of the 10 leading economies across Europe could pay for at least 35,000 extra beds a day and many more GP's, according to the...
- 05 Sep
MANY DOMESTIC VIOLENCE REFUGES AT RISK OF CLOSING DUE TO HOUSING BENEFIT CAP
Women who have been victims of domestic violence as well as their children are at risk of falling into the hands of their violent partners if the government caps housing benefit in the social sector...
- 03 Sep
Data on disability benefits refused by DWP
DWP officials have refused a second request for basic information on disability benefits using the “Section 22” exemption they used previously, reports The Independent.The Department had been...
- 02 Sep
UN to investigate how welfare reforms will affect disability rights
A disability charity in Scotland has said it’s been contacted by the UN’s Committee on the Rights of Persons with Disabilities as part of an inquiry into Britain’s treatment of people with...
- 01 Sep
Benefit cuts affecting 48,500 families in Liverpool
Analysis from Liverpool City Council has found that around 48,500 households are likely to lose their benefits due to new government reforms, reports the Liverpool Echo. Councillor Jane Corbett has...
How to fund Housing Support and Social Care Services "Alot of information in a short time, good for me because I travelled a long way. So I feel the journey was worthwhile." C.T - People First Dorset
