Behaviour Change Research to Tackle Rent Arrears

Housing associations and local authorities have been invited to participate in a six-month research programme to test how behavioural science can improve rent collection and reduce rent arrears.  The research, by the housing team in Capita’s property business, will investigate how intervention techniques have an impact on the decisions tenants make. Several organisations will each try a different approach to income collection and managing rent arrears, such as changing the language used in text messages and letters to tenants. This will be measured against a control group in each organisation that will not change the way it currently engages with its tenants. Read more on the Capita website.

Council Takes £2m from HRA

The Audit Commission has accused Medway Council of ignoring the advice of its external auditors by shifting £2 million from a ‘ring-fenced’ housing budget to its general fund. The Kent authority’s chief executive employed ‘special urgency’ powers in September to raid its housing revenue account, council papers from last month reveal. Such powers allow senior officials to make urgent decisions which are approved later by councillors. The £2 million raid makes Medway the fifth council to sanction such controversial transfers on the advice of consultancy Capita. The CLG is probing the ‘appropriateness’ of the move. In total, £37.5 million is now known to have been taken from council housing budgets during September before the legal ‘loophole’ pinpointed by Capita was sealed by the government on 1 October. Read more on Inside Housing.

Councils’ £35m Raid on Rents

Government launches investigation as three councils transfer housing revenue account cash into their general funds.  The government has launched an investigation into a spate of multi-million pound cash transfers in which councils have raided their rent accounts to prop up their ailing general funds. At least three authorities called urgent meetings last month to sign off shifting sums totalling £34.5 million out of their housing revenue accounts. Councillors in Manchester, Oxford and Dover rubber-stamped the transfers on the recommendation of officers and following advice from consultancy Capita.  Read more on Inside Housing.