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Em

Em Morley

10,000 Less Possession Claims by Social Landlords

Published On: March 6, 2015 at 9:50 am

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Last year, social landlords issued 10,000 fewer possession claims. It is believed that they are working more closely with tenants to avoid rent arrears building up, after the introduction of Universal Credit.

Figures released by the Ministry of Justice (MoJ) last month revealed that social landlords issued 97,924 claims for possession in 2014, down by 9% on the 107,893 in 2013.1

Part of the legal process for gaining possession of a property is issuing possession claims in a county court. This is done when tenants fall into arrears, or if the tenancy agreement is broken in any other way.

10,000 Less Possession Claims by Social Landlords

10,000 Less Possession Claims by Social Landlords

Some research suggests that the drop in claims is down to housing providers communicating more with their tenants at an earlier stage, as they need to manage rent arrears better following welfare reforms. Consequently, they are avoiding a build up of problems that can lead to court action.

With Universal Credit in place, the majority of households are paid housing benefits directly.

Director of Rent Control and Rent Collection at Family Mosaic, Viv Davies, says that the amount of possession claims at the 19,000-home provider have fallen slightly in the last year, due to better liaison with tenants. Davies comments: “We are getting to know our tenants better and are more engaged.”1

Family Mosaic has begun using text messages to remind tenants to pay their rent. In some cases, Davies threatens tenants with small claims action.

A partner at Devonshires, Nick Billingham, says: “Landlords are doing more work with tenants to maximise their benefits and sort out their issues.”1

Policy Leader at the National Housing Federation, John Bryant, says that the figures are “encouraging”, and noted that the social sector is working alongside tenants to minimise arrears.1

The MoJ study also shows that eviction notices are not being followed through into court action.

A total of 167 social landlords issued 239,381 possession notices in 2013-14, a rise of 21.9% on 2012-13.1

1 http://www.insidehousing.co.uk/business/tenancy/social-landlords-issue-10000-fewer-claims-for-possession/7008575.article?adfesuccess=1

New Universal Credit Rules will Affect 200,000 People

Published On: March 5, 2015 at 4:17 pm

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New rules in the Universal Credit scheme could leave 200,000 claimants waiting six months for their benefits. The changes have caused concern over a potential rise in rent arrears.

The new regulations were laid in Parliament last week and have been described by social housing providers as likely to lead to an increase in difficulty and evictions.

New Universal Credit Rules will Affect 200,000 People

New Universal Credit Rules will Affect 200,000 People

At present, the Department for Work and Pensions (DWP) calculates a person’s Universal Credit monthly. If they earn over a certain threshold that month, their entitlement is reduced or removed. Under the new rules, the DWP will take six months of previous earnings into account.

This means that for a claimant who earns a higher amount in one month, but nothing the next month, they may be unable to claim for up to six months. The change only applies to those making repeating claims within six months of a previous claim ending.

The DWP predicts that up to 200,000 claimants will be affected by the change when it comes into force on 6th April 2016. This would be almost ten times the number hit by the £26,000-a-year benefit cap.

The change will see claimants receiving irregular income having to plan and set savings aside for when they are not working, as they may not be in receipt of their benefits.

Responding to a previous consultation on the rules, the National Housing Federation says: “Any additional delay in tenants’ ability to access the right support will further increase the possibility of poverty.”1

London housing provider Peabody said that there will be an “obvious area of hardship” for claimants who work seasonally. They added: “With the accruing rent arrears, there is every chance of people facing eviction.”1

Other groups expressing worry are Community Housing Cymru, the Scottish Federation of Housing Associations (SFHA), Golden Gates Housing Trust, and Wheatley Group.

Last week, the Government announced that it has changed the finalised regulations to let claimants earn up to £300 more in one month than the next without being affected, halving the amount of people expected to be hit. The changes hope to stop those who can choose when they get paid from maximising Universal Credit.

1 http://www.insidehousing.co.uk/policy/welfare-reform/universal-credit/new-universal-credit-rules-will-hit-200000-people/7008572.article?adfesuccess=1

Which City in the World has the Best Quality of Life?

Published On: March 5, 2015 at 11:51 am

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We may consider our hometown or the city that we live in to be the best place in the world. However, a new study has found that those living in Vienna have the best quality of life in the whole world.

The results are based on factors such as political and cultural environments, education, housing, and health. The UK saw its first mention at number 40 with London.

The Top Ten Cities for Quality of Life1

  1. Vienna, Austria
  1. Zurich, Switzerland
  1. Auckland, New Zealand
  1. Munich, Germany
  1. Vancouver, Canada
  1. Dusseldorf, Germany
  1. Frankfurt, Germany
  1. Geneva, Switzerland
  1. Copenhagen, Denmark
  1. Sydney, Australia

1 http://i100.independent.co.uk/article/the-10-cities-in-the-world-with-the-best-quality-of-life–x1NC73HU6x

NLA Debate Private Rental Sector with MPs

Published On: March 4, 2015 at 3:14 pm

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Last Monday, the National Landlords Association (NLA) organised an election discussion in Westminster, called If we get into Government… Parties Visions for the PRS [private rental sector] post 2015.

The meeting was held at Portcullis House opposite the Houses of Parliament. Speakers from the main political parties outlined their plans for the sector. The discussion focused on rent control, long-term tenancies, and the abolition of section 21 notices.

Attending was Parliamentary Under Secretary of State for Communities and Local Government, Stephen Williams MP, the Conservative Party Vice-Chairman for Local Government, Bob Neill MP, Labour’s Shadow Minister for Housing, Emma Reynolds MP, and the Green Party Housing Spokesperson, Tom Chance. UKIP were invited, but did not attend.

Find out more about the event, including a live recording, here:

NLA Debate Private Rental Sector with MPs

 

Britain Needs Bolder Housing Solutions, says Telegraph

Published On: March 4, 2015 at 2:26 pm

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An article on The Telegraph online tells of their thoughts on the housing crisis, and how political parties are not working hard enough to solve it.

The Telegraph View piece says: “The Conservatives are right to prioritise housing, but they must go much further.”

They explain that in the past, increasing property prices were seen as completely positive. Now though, it is seen as pushing homeownership further away from the young.

“So David Cameron is right to identify the struggle of young people to buy a home as a major issue of concern at the general election and beyond,” the article reads. “His intention to increase the supply of affordable starter homes for first time buyers is likewise laudable.”

However, they go on to explain that Mr. Cameron’s “prescription is less convincing than his diagnosis.” The pledge to build 200,000 homes is praised, however Telegraph View believes there is “no certainty” that this will be carried through.

Britain Needs Bolder Housing Solutions, says Telegraph

Britain Needs Bolder Housing Solutions, says Telegraph

They explain that this scheme “rests on the hope that profit-making developers will sell homes well below their market value because they are exempted from some planning and building regulations.”

Offering their opinion, The Telegraph adds: “In truth, the only way any Government could guarantee such numbers would be to build the houses itself.”

Nevertheless, The Telegraph does say that the Conservative’s plans are “more convincing than Labour’s policy.” Of the opposition’s scheme, The Telegraph says that it “rests on an ominous threat to penalise developers deemed to be hoarding land.”

On all parties, the article says: “None of the political parties is offering to address the complex, deep-rooted causes of Britain’s property problems: a growing, ageing population whose members increasingly tend to live alone or in smaller households, rather than the extended families of old; the flow of international capital into Britain’s admirably open economy; and the concentration of power, money and people in south east England.

“The scale of the task in tackling Britain’s housing problems is great, but so are the rewards – social, economic and yes, political rewards.”

The article reveals that after two months of campaigning, “voters remain largely unmoved” in opinion polls. According to these statistics, “both the main parties are languishing well below the levels of support that would deliver a clear general election victory.”

The Telegraph gives their opinion on the main contenders: “While Ed Miliband’s Labour lacks the dynamism to escape this quagmire, the Conservatives can still do so with a more positive and detailed vision of the better Britain they would create with another term in office.”

Telegraph View then offers their advice for the Conservatives: “They should start on housing, promising to transfer millions of socially-owned homes to their tenants then tax any subsequent sale and use the proceeds to build more houses. Building the property-owning democracy that the Conservatives have rightly promised for almost a century requires radicalism, not tinkering.”1

With the general election just over two months away, housing is still an area of importance for most, if not all, voters.

1 http://www.telegraph.co.uk/comment/telegraph-view/11445461/Britain-needs-boldness-not-tinkering.html

Councils say Housing Affordability is Most Urgent Issue

Published On: March 4, 2015 at 11:01 am

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The cost of housing in the UK and the way it affects local people is now the main concern for local governments, revealed a survey of council chief executives. This issue now stands higher than common concerns about health and social care services.

The research found that affordability of housing is the area that most needs improvement according to 61% of local government chief executives. Adult social care at 43% and health care services at 39% followed. Wage levels and the cost of living (38%), and job prospects (36%) were close behind.1

At the opposite end of the scale, parking (3%), community relations, and antisocial behaviour (4%) were seen as the lowest priority.1

Council chief executives were asked to select four of five areas that most need improvements for their citizens.

The issues that most demand improvements1

Affordability of housing 61.1%
Adults’ social care 42.6%
Health services 38.9%
Wage levels and local cost of living 38%
Job prospects 36.1%
Public transport 34.3%
Condition of roads and pavements 33.3%
Children’s social care 30.6%
Local high street 22.2%
Schools 21.3%
Facilities for children and young people 13%
Adult education/training 9.3%
The quality of the local environment 9.3%
Cleanliness of streets 8.3%
Sports and leisure facilities 6.5%
Cultural facilities (e.g. libraries, museums) 4.6%
The level of crime and anti-social behaviour 3.7%
Race/community relations 3.7%
Parking 2.8%
Don’t know 0%
Councils say Housing Affordability is Most Urgent Issue

Councils say Housing Affordability is Most Urgent Issue

The issues discovered in the study differ substantially from those that the general public consider important. Ipsos MORI, who conducted the survey, put the same questions to the public. It was found that housing affordability came fifth, behind roads and pavements, activities for teenagers, cleanliness of streets, and job prospects.

In the last few years, local authorities have had their waiting lists for social housing increase massively, as a consequence of the shortage in social housing.

Cuts in welfare spending that have a direct influence on housing costs, such as Bedroom Tax and the benefit cap, have put added pressure on councils.

Government figures on housing published last week show a negative image of housing affordability in England. Rates of homeownership decreased for the 11th consecutive year, and one-in-five tenants now rely on financial support from housing benefit to pay their rent.1

The research also discovered that, after four years of cuts in the public sector, 75% of chief executives think the financial future of their local government would continue to drop. The report cautioned that there might be further cuts in public services, despite the UK’s economic recovery.1

Over 70% of respondents said that cutting their costs was the top priority for the council in the last year. The two most common methods of doing so are reducing spending on back-office functions and sharing services.1

When they were questioned on what the next government’s main priorities should be, council leaders named the importance of integrating health and social care services, devolving more power from central to local governments, and increasing the supply of housing as the top three issues.1

1 http://www.theguardian.com/public-leaders-network/2015/mar/04/housing-affordability-urgent-council-issue?utm_content=buffer5e049&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer