Rent arrears management practices in the housing association sector

homes) the corresponding figure for those with
more than 10,000 dwellings was 32% .
Typically, associations designate a specific arrears
threshold to serve as the trigger for consideration
of legal action . This was true for 88% of responding
landlords . In three quarters of cases, the threshold
was defined in terms of a multiple of week’s unpaid
rent – most commonly four weeks, although in
a few cases as low as two weeks or as high as
eight weeks . Where defined as a cash amount, the
trigger point for consideration of legal action was
usually set at £200-300 . However, while a few
respondents stated that action would be initiated
“automatically” at the relevant trigger point, a larger
number made it clear that this would depend on
consideration being given to the specific facts of
each case . For example, one respondent noted
that the association’s trigger point for action
was “normally six weeks, although flexibility is
built in to ensure that this is not a rigid rule - for
example where HB is an issue or where there are
particular vulnerability considerations” . Equally, a few
respondents mentioned that legal action might be
initiated below “threshold arrears” levels in the case
of tenants with a history of non-payment .
In serving a NSP, just under half of associations
(48%) said that their standard notification included
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informing tenants of their right of appeal (although
there is no formal legal entitlement to such a review) .
To what extent are associations complying with
guidance on prioritising personal contact with
tenants in arrears? Virtually all – 94% – reported
that arrears management staff were “required” to
make personal contact with tenants before an NSP
was issued . Anticipating that many would indicate
an “in principle” commitment to this objective,
respondents were also asked to detail their
organisation’s guidance to staff on “the ways [they]
should seek to contact tenants [in arrears] and on
the number of attempts they should make to do so” .
In most cases extracts from associations’ procedure
manuals demonstrated that staff were encouraged
to make personal contact prior to the service of
NSP . In some instances, however, this was qualified
to the extent that “personal contacts” could include
communication by text or e-mail . Given that these
are not forms of “live contact” it is debateable
whether they should be regarded as appropriately
substitutable for conversation – either face-toface
or by telephone . On the other hand, many
procedure manuals stipulated that home visits
should be attempted prior to service of a NSP and
a few specified that staff should seek to achieve
these through out of hours calls where necessary .