Rent arrears management practices in the housing association sector

Most associations report initiating some form of
response to a single missed rent payment and the
vast majority have designated a specific arrears
threshold (most commonly four weeks rent), which
triggers consideration of legal action . In some cases
such action was initiated “automatically” at this point,
irrespective of the individual facts of the case . Again,
the vast majority of associations report that staff are
“required” to make personal contact with a tenant
before a NSP will be served . The average estimated
proportion of NSPs, which are, in fact, preceded
by such contact was 70% . In one in ten cases,
nonetheless, it was believed that this applied in no
more than 30% of notices served .
Almost a quarter of associations reported recently
having sought possession under Ground 8 of the
Housing Act 1988 . Substantiating suggestions
from earlier research, use of Ground 8 was much
less common among transfer HAs and much more
common in London than elsewhere . The level of
arrears was the factor most commonly cited by
Ground 8 users as a consideration in whether or not
to take action on this basis . Other factors cited by
more than half of this cohort of associations included
where the tenant fails to respond to attempts at
contact, where the tenant is believed to be no
longer living at the property and the tenant’s
“other behaviour” .
Estimates based on the incomplete statistics
provided by associations responding in the survey
suggest that Ground 8 actions may have accounted
for some 350 evictions in 2007-08 – just under
five per cent of the national total . However, among
the limited group of associations directly involved,
Ground 8 actions typically accounted for 20% of
evictions in that year (in a few cases, the figure being
much higher) . There are also indications that Ground
8 use may have been increasing in recent years .
While three quarters of associations reported having
modified their rent arrears management practices
in response to the PAP, this leaves a significant
proportion of landlords (disproportionately the
smaller landlords) whose procedures had remained
unchanged . The most common themes were
the (a) adoption of more structured, consistent
practice, (b) a shift towards a more pro-active,
preventative approach, and (c) increased awareness
of vulnerability issues . Looking to the future, many
respondents anticipated further significant changes
in the management of arrears during 2009 . On
this basis, it can be expected that we will see a
continuation in recent trends towards greater
functional specialisation and increased emphasis
on personal contact with debtors .
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