Benefit Cuts Spark Debt Fears

Two thirds of social landlords are concerned proposed cuts to housing benefit will lead to an increase in bad debt on their balance sheets. The Chartered Institute of Housing’s UK housing panel’s latest quarterly survey also found 78 per cent of housing associations were expecting an increase in arrears as a result of the cuts, which are due to come in from April 2011 onwards. The report shows that 54 per cent of landlords are predicting an increase in the number of evictions due to ‘spiralling arrears’. The report also states that the sector is bracing itself for rising pressure on waiting lists as private sector tenants find themselves unable to afford their rents as a result of caps to local housing allowance.