Rent arrears management practices in the housing association sector

esearch findings suggest that the trends towards
increasing centralisation and managerialisation
of rent arrears management, together with earlier
intervention and face-to-face contact, may be factors
contributing to this decline .
Previous research on HAs’ use of Ground 8,
a key focus for this study, has been very limited .
Our study found:
• Almost a quarter of HAs had recently made some
use of Ground 8
• LSVT associations were least likely to use
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it, perhaps because of commitments made
at transfer
• The level of arrears was reported by housing staff
as a key determining factor in influencing decisions
to proceed on Ground 8 – however, this was
somewhat belied by the case file analysis showing
that the typical value of arrears in Ground 8 cases
was only marginally higher than for cases where
action was pursued on other grounds
• Other considerations reportedly relevant in
decisions to use Ground 8 were: failure to respond
to attempts at contact; property abandonment; and
the tenant’s “other behaviour” – the importance of
the first two of these factors was borne out by the
case file analysis
• On the basis of our survey, we estimate that
Ground 8 was used in 350 evictions in 2007-
08, just under five per cent of the national total
number of arrears evictions (although this assumes
evenness across the sector, and it is notable that
two HAs, which were known as heavy users of
Ground 8 did not respond to the survey)
• Among the sub-sample of HAs which used
Ground 8 and which responded to our survey,
eviction on this ground accounted for 20% of
evictions in that year
• The incidence of Ground 8 use in London was
twice the national average
• The indications are that the use of Ground 8 has
increased in recent years . The reasons for this
remain unclear . It is theoretically possible that this
reflects the “perverse incentive” created by the
PAP in that failure to comply with its terms in such
instances can be penalised only by an order for
costs . However, there is no evidence at all that any
increase in the use of Ground 8 is an “unintended
consequence” of the PAP
Among case study HAs, Ground 8 (which was
used by five out of six case study HAs) was said
to be used as a last resort . A range of definitions
and practices were found as to the meaning of
“last resort” in this context, although as a general