Industry News


HA rent arrears jump to a record high of nearly £800 million


Unpaid rent owed to housing associations by their tenants rose by 8.4% to reach a record high of just under £800 million, aſter a significant rise in arrears was recorded last year. Aſter a period of relative stability in


the mid to late 2010s, the amount of rent outstanding has steadily risen each year since 2018, with the latest combined accounts showing an increase in rent arrears from £736 million in 2022 to £798 million last year. Tis is the equivalent of one in 20 tenants (or 5.3%) not being able to pay their rent. Alistair Smyth, director of policy and


research at the National Housing Federation, said: “Rising costs have affected all sectors, including the social housing sector, and to balance affordability for residents with ensuring they can continue to deliver quality homes and services now and in the future, housing associations consider any decisions about rents very carefully.” “We continue to call on government for


a long-term rent settlement for the social housing sector as part of a broader long-term plan for housing,” he added. “Tis approach would provide stability and certainty for residents and social landlords, allowing them to plan for the future.” Mr Symth stressed that “housing


associations have tailored support in place to help any residents” in financial difficulty and that the sector had committed to ensure “no tenant will be evicted because of financial hardship”. A spokesman for the Regulator of Social


Housing said: “Te majority of providers report that their level of rent arrears is within their business plan assumptions and that, while tenants are being affected by cost of living pressures, overall arrears are in line with cyclical trends.” “Providers must have a firm understanding


of arrears and manage all financial risks carefully, particularly in the current economic climate where there is limited headroom.” “We continue to monitor the arrears data


that providers submit to us, along with other financial returns. When there are issues of regulatory concern, we will follow up in line with our normal approach.” Housing associations have also been


facing increased financial pressure in recent years due to high borrowing costs and inflation, with many HAs reporting significant reductions in their operating surpluses.


Budget fails to please housing bodies or to address our housing crisis


A


largely housing-lite budget has failed to stimulate the imagination of the major representative bodies involved in the


delivery of housing services across the nation. Tis year’s Budget announced (among several


other changes) the following fiscal changes: • Capital Gains Tax will be reduced from 28% to 24%;


• National Insurance to be paid by workers will fall by 2p;


• Te furnished holiday lets tax regime is set to be abolished.


Responding to the Budget, Ben Beadle, chief executive of the National Residential Landlords Association, said: “Te Chancellor has once again ignored calls to revitalise long-term investment in quality rented homes in favour of tinkering at the margins for short-term gain.” “Increasing taxes on holiday lets and cuts


to Capital Gains Tax will make no meaningful difference to the supply of long-term rental properties. Meanwhile, those reliant on housing benefits still do not know if their benefits will be frozen from next year or not.” “With an average of 11 tenants chasing every


home for private rent, social housing waiting lists at 1.3 million, almost 110,000 households in temporary accommodation and the number of first- time buyers slumping, the Budget needed to tackle the housing crisis once and for all. What we got was a deafening silence. Tis was a missed opportunity to make providing new homes to rent and buy the priority it desperately needs to be.” Kate Henderson, chief executive of the National


Housing Federation, made similar comments, saying: “We’re disappointed that this year’s budget was not used as an opportunity to address the housing emergency and chronic shortage of


14 | HMMApril/May 2024 | www.housingmmonline.co.uk


affordable homes across the country.” “Te measures announced by the Chancellor to


support families on the lowest incomes, including the extension of the Household Support Fund are welcome and will provide some relief for those who are struggling with the rising cost of living.” “However, with child homelessness at record


levels and one in six children growing up in overcrowded homes with little space or privacy, urgent and meaningful action on housing is needed. Tis housing crisis can be solved but it requires a change of approach. Te Government must put an end to short-term thinking and piecemeal policy decisions and commit to a national long-term plan for housing which aims to deliver the secure, affordable, high-quality homes local people need.” Meanwhile Gavin Smart, Chartered Institute


of Housing chief executive commented: “From a housing perspective, this was a disappointing budget. Given the significant housing crisis that we’re currently navigating there was no mention of the urgent action needed to address this. “Tere were some welcome announcements to


help support people in debt, such as the temporary extension of the Household Support Fund, which we had called for, and the abolition of the Debt Relief Order charge, but they won’t bring down rising housing costs.” “In our pre-Budget submission we called for


urgent action to boost social housing supply, invest in homelessness prevention and decarbonise the residential sector. Tese calls remain and we’ll continue to push the government to go further. We need a sustainable housing system to support a vibrant economy.” It almost looks as if the Conservative


Government have given up on attracting votes on housing issues from people regardless of their housing tenure type or financial means.


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