Report Reinforces ‘Significant Impact’ Of Universal Credit On Landlords

A new report reinforces the difficulties social landlords are still facing from the roll-out of Universal Credit (UC). The Northern Housing Consortium (NHC) report Impact of Universal Credit – The Frontline Perspective summarises a year-long study of UC, highlighting the experiences of 85 of its member organisations and their tenants across the North. Key concerns that have emerged include the following:

·         95% of participants reported that their tenants were having difficulty in meeting housing costs.

·         There is a significant impact on landlords, with 92% reporting staff were spending more time supporting people through the UC process than the Housing Benefit process.

·         Communication problems between participants (and their tenants) and the DWP

Download the report from the NHC website.

CLG Set Out Process For Rent Exemptions

The CLG has set out information and guidance for councils considering applications for exemption from the mandatory four year 1% rent reduction. The information and guidance makes it clear that the Secretary of State will only consider granting an exemption if it is the only way to avoid the authority's Housing Revenue Account falling into serious financial difficulties. Any council considering applying for an exemption from the mandatory 1% rent reduction will need to demonstrate that they have considered all other options for reducing expenditure in line with reduced rental income including looking at existing contractual commitments. Download the guidance from the CLG website.

Struggling Generation Rent Is Being Driven Into Debt

With a soaring number of tenants falling into financial difficulties as they battle increasing rental costs, charities have identified a “worrying trend” of escalating debt for those who are frozen out of home ownership. Debt charity StepChange says the number of renters contacting it with difficulty paying off debt in the four years to 2015 more than doubled, rising by 139%. The average sum owed is £10,829 each, made up of unsecured debts including overdrafts, loans, credit card debt and rent arrears – which have reached an all-time high of £922. Figures from separate findings by charity National Debtline show that the number of people seeking help with rent arrears doubled, to 14% of callers, over the past five years. Read more on the Observer website.

Sector Lobbies On Right to Buy and Rent Cut

The financial straits housing associations are facing due to Right to Buy and the social housing rent cut has dominated submissions to a parliamentary inquiry on the future of the sector.  Written submissions to the CLG Committee’s inquiry on the sustainability and viability of housing associations reveal strong concern over the policies while also apparently wanting to appear supportive to the government. According to the Placeshapers group of associations there was now however a “risk of a drastic loss of new homes” in the light of Right to Buy, required rent reductions and welfare reform.  Read more on Inside Housing.

94% of UK's Social Housing Tenants Face Financial Hardship

The majority of the UK's social housing tenants have faced some kind of financial difficulty in the past six months, shocking new research has found. With a massive 94% having to deal with financial woes of some description, the research by independent community interest company Money Saving Movement (MSM) revealed that 43% of tenants have struggled with household essentials. And tenants don't view their social landlords as a primary source of help, with 10% saying they would approach their bank for help, compared with only 5% who would talk to their housing association. MSM claims that its research "adds further weight to a growing body of evidence" that low-income households are bearing the worst brunt of the financial crisis, as well as the resultant recession.  Download a summary of the report from the MSM website.

Minister: “Homes Scheme ‘Incoherent and Unfair’”

A flagship coalition policy which the Government claims will boost housebuilding in Britain is “incoherent” and “unfair” and should be scrapped, the Minister responsible has admitted. In unguarded comments at the Liberal Democrat conference in York, Local Government Minister Stephen Williams admitted the ‘New Homes Bonus’ has no real impact on the number of new homes being built in Britain.  Amongst a raft of criticisms of his department , Mr Williams branded another key policy – preventing authorities from raising council tax by more than two per cent – as “absurd”. Damningly for the Government, the Minister also admitted the smallest councils will “undoubtedly” face “severe financial difficulty” over the next few years due to the cuts handed out by his own department, raising questions about their “viability”. Read more on the Yorkshire Post website.