Social Housing Is Becoming ‘Increasingly Commercialised’, Says Study

The social housing sector has become ‘increasingly commercialised’ as housing associations look for new ways to make money, report finds. A new report from Zurich Municipal has found difficult times and dwindling revenue streams has forced Registered Providers (RPs) of housing to turn to ‘non-core’ activities, such as social care or operating leisure centres, to make money. A previous report by the public sector insurer had found that 76% of RPs had introduced new services beyond their core role as a housing provider. Read more on the LocalGov website.

Landlords Call For Supported Housing Funding Changes

The government should cap supported housing management costs and stop funding them through housing benefit, a group of 100 housing associations has recommended. Umbrella body Placeshapers said the management costs charged by supported housing providers “would require a new, separate funding stream outside of ongoing housing benefit… capping management fees and clear parameters for eligible services”. In its response to the National Housing Federation’s (NHF) consultation on the future funding of supported housing, Placeshapers said such a move would address fears that the housing benefit bill is “out of control”. Read more on the Placeshapers website.

Tenants Fail To Pay the Bedroom Tax

A large proportion of tenants hit by the bedroom tax have so far failed to pay the resulting shortfall in their rent.  Several of the UK’s largest housing associations have this week revealed thousands of tenants have not covered their rent since the controversial policy was introduced on 1 April. This has sparked fears that landlords’ income streams and ability to borrow cheaply to build new homes could be hit if the trend continues.  Liverpool-based Riverside Group said around half of its 6,193 affected households receiving full housing benefit have not paid anything at all to cover the shortfall, while a quarter contributed something but did not pay their rent in full. Just one in four affected tenants paid the full amount.  Read more on Inside Housing.