Rent arrears management practices in the housing association sector

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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 112 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
ule it would not be used where HB was in issue or, except in one HA, where the tenant was known to be “vulnerable” (although again different notions of vulnerability were employed) . In some HAs, this was facilitated by a practice of requiring officers to submit the case for using Ground 8 to a manager for decision . In one HA, which had been a high user of Ground 8, the teams had developed different versions of a “local law” that supported its minimal use . In two case studies, it had been or was being used as a way out of the failure of previous approaches to rent arrears management . In all case landlords using Ground 8 there was a general acceptance that their organisation could operate successfully without its use, although this might involve a slightly higher exposure to rent arrears . Duty advisors covering the court used by the three Northern case study HAs were concerned at the increasing use of Ground 8 against clients for whom they acted as well as the unwillingness of some HA officers to negotiate . All duty advisors commented that presenting housing officers generally lacked experience and knowledge of law and procedure, which may result in them failing to achieve the orders requested, and could give rise to multiple suspensions . Future policy development in this area could be usefully informed by routine collection of data on the use of Ground 8 from the landlord perspective . It would be straightforward to request that landlords specify in RSR returns the number of evictions in which action had been brought under Ground 8 . More generally, there could be a case for seeking additional data about evictions on an ongoing basis, using the same vehicle . This could include, for example: • information potentially shedding light on the causes of eviction, such as the proportion of evictions where the recovery of a Housing Benefit overpayment had been a contributing factor to arrears leading to proceedings • information providing an insight into arrears management, such as the proportion of evictions involving cases where personal contact had been made with the tenant before proceedings had been initiated In terms of specific research, there is potentially much that could be learned from a longitudinal study of a cohort of households in serious arrears, with a focus on identifying the managerial and legal processes applied . Rent arrears management practices in the housing association sector 113
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Rent arrears management practices i
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Contents Executive summary . . . .
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Executive summary Introduction This
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Key underlying factors were said to
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could, in part, reflect the growing
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overpayments and suspensions were p
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Chapter 1 Introduction 1.1 Backgrou
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arrears management and related aspe
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“… there may occasionally be ci
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under Article 8 of the Convention,
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y HAs . 37 The Circular informed as
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Pre-action protocol for possession
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The purpose of these interviews was
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Table 1.1 - Case Study HAs Organisa
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Chapter 2 Rent arrears management p
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Pawson et al’s study found that 9
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2.3 Rent arrears management practic
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this with any certainty . 69 Howeve
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authority can also lead to a lack o
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2.5 The use of Ground 8 Although th
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In the Hunter et al study, 97 which
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some comment on the effect of the P
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• Ground 8 provided certainty to
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There was a difference of opinion a
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3.3 The use of Ground 8 Whereas ans
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do so early enough, or at all . Cla
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Chapter 4 Rent collection and arrea
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4.3 Housing Benefit service perform
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Table 4.3 - Housing association evi
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As shown in Figure 4 .1, CORE data
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were collected for landlords with l
Page 63 and 64: Most associations report initiating
Page 65 and 66: 5.2 Organisation of rent arrears ma
Page 67 and 68: Table 5.2 - Primary structure of ar
Page 69 and 70: Table 5.3 - Recent changes in organ
Page 71 and 72: Table 5.6 - Staff training provisio
Page 73 and 74: Within the transfer landlord cohort
Page 75 and 76: • Where arrears were accrued befo
Page 77 and 78: Table 5.9 - Estimated percentage of
Page 79 and 80: elatively high response rate achiev
Page 81 and 82: The survey sought to collect statis
Page 83 and 84: Ground 8 actions typically accounte
Page 85 and 86: How is the scale of Ground 8 use ch
Page 87 and 88: already routinely exercising the ac
Page 89 and 90: Chapter 6 Case study evidence Chapt
Page 91 and 92: Annex 2 outlines our method, includ
Page 93 and 94: a couple of weeks to three months)
Page 95 and 96: to officers and policies . Officers
Page 97 and 98: RM put it, “caused uproar from te
Page 99 and 100: preferred form of the organisation
Page 101 and 102: tenant contacts are now recorded on
Page 103 and 104: as a result, would make an order un
Page 105 and 106: use - in these cases, it is viewed
Page 107 and 108: g) The tenant perspective In each c
Page 109 and 110: Ground 8 was generally to scrutinis
Page 111 and 112: Ground 8 was said to be used as a
Page 113: The key stakeholders regarded the P
Page 117 and 118: Table A1.1 - Evicted households by
Page 119 and 120: uncontactable as a result) . Where
Page 121 and 122: Just under half of all cases in the
Page 123 and 124: Annex 2 Case study HA selection Our
Page 125 and 126: Annex 3 Profile of case study housi
Page 127 and 128: However, after a review across its
Page 129 and 130: as developing joint working with th
Page 131 and 132: Annex 4 Case study topic guides HA
Page 133 and 134: 19. What has been your recent exper
Page 135 and 136: 12. How are your tenants helped wit
Page 137 and 138: 9. If RSLs rely on Ground 8, what i
Page 139 and 140: 4 Tenant employment circumstances (
Page 141 and 142: 10 Value (£) of arrears at defined
Page 143 and 144: Our offices Maple House 149 Tottenh
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Rent arrears management practices in the housing association sector

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