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Housing associations under pressure to offer rent holidays.

30 replies

HeIenaDove · 17/03/2020 18:25

www.theguardian.com/society/2020/mar/17/housing-associations-under-pressure-to-offer-covid-19-rent-holidays

Housing associations under pressure to offer Covid-19 rent holidays
Millions of tenants may be unable to pay as coronavirus leads to lost work, say charities

Housing associations are under pressure to offer rent holidays after only one pledged not to evict any tenant in arrears due to self-isolating because of the coronavirus.

Millions of people live in 2.4m homes let by housing associations across England, Scotland and Wales. Rents are expected to rise by 2.7% from next month and there are fears many people will be unable to pay after losing work or due to being in self-isolation.

The Labour party has urged the government to ban eviction of tenants whose income has been hit by the outbreak and to allow rent deferrals.

Some people who live in housing association accommodation work in the gig economy or have precarious contracts, with some out of work because of the impact of the pandemic.

Research by the homeless charity Crisis suggests there were more than 25,000 households evicted from housing associations in 2018, the lowest level since 2000, after a gradual exclusion of the poorest tenants from newly available properties.

The Guardian contacted scores of housing associations – some of which describe themselves as companies “with a heart” – but only one confirmed it would introduce measures to prevent the evictions of those who could not pay their bills because of Covid-19

We will stay in regular contact and not initiate any action for rent arrears while they are experiencing difficulties as a result of the virus” said Sarah Sargent from Radian Group, which has 80,000 tenants across south and south-west England.

“Our goal is always for our customers to maintain their tenancies and our tenancy sustainment team already provide support to customers.”

Other large housing associations said they relied on rental income but were monitoring the situation closely amid business continuity planning, while others said they rarely evicted people.

A source with knowledge of discussions between housing associations regarding the scheduled rent increase said events were developing quickly and there was a concern people would not be able to pay rents at all. In 2017, the UK’s housing associations made record operating profits of £3.5bn

Crisis called on the government to ensure renters were not put at greater risk of eviction and homelessness.

“Crisis is calling for a temporary suspension of evictions of both social and private tenants,” said Matt Downie the charity’s policy director. “We are already seeing other countries implement such measures and urge the UK to take similar action as a matter of urgency.

“We would expect all social landlords to adopt the practice of the best, and ensure tenants who experience loss of earnings because of the pandemic are supported so that they are not at risk of homelessness.

The G15 housing associations, which are responsible for about 600,000 homes in London, welcomed the extension of statutory sick pay – £94 a week – to include people advised to self-isolate because of Covid-19 and urged those ineligible to claim universal credit or employment support allowance.

“We are continuing our rent collection processes as normal, which include significant support for tenants experiencing hardship for whatever reason,” a spokesperson said. “G15 housing associations only use evictions in the absolute last resort.”

Chyrel Brown, the chief operating officer at One Housing, said: “We will continue to collect rents as we rely on this income to deliver essential services. We always offer advice and support to residents who find it difficult to pay their rent and will continue to offer this vital support.”

Simon Nunn, an executive director at the National Housing Federation, said: “As charitable organisations [housing associations] are set up to support vulnerable residents and this includes helping those who may struggle financially by providing advice, help with budgeting and access to benefits

Many are working to put additional measures in place to support residents that may fall into rent arrears to get back on their feet.”

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HeIenaDove · 17/03/2020 21:51

.

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HeIenaDove · 18/03/2020 14:32

.

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lubeybooby · 18/03/2020 14:34

Surely renters need to claim UC if they run into problems?

CuriousaboutSamphire · 18/03/2020 14:34

There has been an NHA staement today... tenant affected by corona virus and fall behind on rent wil NOT be evicted. It wasn't long ago and I only saw a single line of text... I expect there will be more in a while!

MrsKypp · 18/03/2020 14:38

I think the government need to focus on ensuring everyone gets paid as normal.

If housing association residents get 'rent holidays' there would be a huge amount of anger amongst people renting from private landlords. It would be very unfair to support one type of tenant and not the other.

Private landlords may also be reliant on their rental income though, so I really think it's people's income from work / benefits that needs to be maintained.

Not paying rent could lead to chaos, couldn't it? I don't think it's a good idea at all. BUT everyone must be paid as per normal.

HeIenaDove · 18/03/2020 14:42

www.bbc.co.uk/news/uk-51939634

The government will bring forward emergency legislation to protect private renters from eviction, Boris Johnson has said

Tenants were "worried sick" they might not be able to pay rents if they fell ill, Labour leader Jeremy Corbyn said at Prime Minister's Questions.

As Wales and Scotland said they would close schools by Friday Mr Johnson said a decision on England was imminent.

It came after Chancellor Rishi Sunak announced £350bn of help for companies.

On Tuesday, the chancellor promised mortgage "holidays", £330bn in loans and £20bn in other aid.

The government had been urged to do more for families, workers and tenants affected by coronavirus.

Mr Corbyn urged the PM to protect private renters in "the interests of public health , adding Britain's 20m private renters were "worried sick" about missing payments if they became ill, lost pay or had to self-isolate.

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HeIenaDove · 18/03/2020 14:43

So.................you were saying??????????

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HeIenaDove · 18/03/2020 14:44

It would be very unfair to support one type of tenant and not the other

Completely agree!

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HeIenaDove · 18/03/2020 14:49

@DGRossetti

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CuriousaboutSamphire · 18/03/2020 14:58

So.................you were saying?????????? Who me?

I was just passing on something I saw on the ticker tape across the bottom of my screen! Thought you might have missed it and we could keep an eye out for more details.

HeIenaDove · 18/03/2020 15:03

No that was directed at Mrs Kypp

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HeIenaDove · 18/03/2020 15:03

But thank you Samphire yes i had missed it

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CuriousaboutSamphire · 18/03/2020 15:05

Ah! I've had a few unintentional run ins around here recently! I've lost faith in my texting voice Smile

Glassio · 18/03/2020 15:13

not just easy to say we will give rent holidays. HA profits are what build the houses, (and employ a lot of people) so if we take the hit on rents you wont be getting any of the social housing everyone is asking for and there will be more job losses.

MrsKypp · 18/03/2020 15:45

So.................you were saying??????????... No that was directed at Mrs Kypp (Helena Dove)

Hi Helena Dove

Oh.. I thought I had said what I was thinking!!

I am not an economist, but I think it's really important to make sure people are receiving an income that is the same or almost the same as their usual income.

I think that's better and fairer than a rent holiday for some people lucky enough to be in the group chosen to receive that while others don't.

Not paying rent doesn't sound easy to arrange fairly, does it? Who qualifies and how long for? Wouldn't others then encounter problems too, like modest landlords with 1 property or whoever?

It's so complicated I can't imagine how to solve this, but making sure people receive their normal income seems fairer to me across the board. Then they could pay their rent and other things without a chain reaction down the line.

To be honest, my own focus now is to stay alive because I have severe asthma. There will be dreadful hardship soon in all areas. let's try to be kind.

DGRossetti · 18/03/2020 15:50

@HelenaDove

Not sure why you tagged me here ?

HeIenaDove · 18/03/2020 20:05

I agree People should get their usual income Right from Day 1. Thanks

Rosetti i thought that you lived in HA accomodation Sorry if i got that wrong.

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HarrietTheShy · 19/03/2020 08:18

Housing associations consider themselves businesses now. No way in HELL would they do this without fierce objection/legal action.

CuriousaboutSamphire · 19/03/2020 08:29

But they have! The NHF confirmed it yesterday!

www.insidehousing.co.uk/news/government-announces-complete-ban-on-evictions-for-social-and-private-renters-65690

DGRossetti · 19/03/2020 09:59

Rosetti i thought that you lived in HA accomodation Sorry if i got that wrong.

No harm done Smile

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HeIenaDove · 19/03/2020 18:04

www.24housing.co.uk/opinion/make-it-go-viral-trust-in-crisis-comms/

Make It Go Viral: Trust in Crisis Comms
Council tenant Rob Gershon began self-isolating about a week ago, when the government announced no kind of isolation or distancing would be necessary other than a seven-day stay-at-home policy for people with a cough or temperature. He wonders below if there’s a better way to communicate what is happening than being over-caution and full dependence on government announcements, across the housing sector

"In times of crisis it’s important that people pull together to reinforce the social fabric, and the other materials that bind society together. Navigating the massive amount of information that has been circulating about the Coronavirus – Covid-19 – and coming to conclusion to inform decisions is already proving tricky for individuals and organisations.

As a carer with a compromised immune system, looking after my wife whose condition is also on the ‘risk list’, last week’s oddball government ‘herd immunity’ approach immediately and instinctively set off alarm bells. While there seemed to be an inexplicable acceptance that the government was ‘following the science’, it seemed a different science to that practised in faraway lands where they are managing to effectively contain the first waves of the pandemic, and a different science to that deployed by our immediate neighbours. Italy, notably, were suddenly struggling with the extreme demands a virus for which humans have no immunity and no vaccine were inevitably going to impose.

There is another angle to my distrust of our current government, rooted in their useless housing policymaking and a learned distrust of its spokespeople. While it might feel reassuring, perhaps rational to believe the government wouldn’t actively do anything to put people at risk, this notion has been smashed to pieces by government policiesof the last ten years.

This would be an even longer blog than necessary if I was to detail every failure, but for somebody who has seen, experienced and sometimes tried to help other people through the bedroom tax, the benefit cap and disability ‘welfare reforms’. As people stockpile toilet paper in anticipation of the Universal Credit shitshow, the idea government decisions don’t hurt and potentially kill people is anathema. Just within the last couple of weeks a group of respected leading charities have asked the DWP again to investigate the deaths of people whose social security payments had been wrongly cut. Both policy and the DWP handling of these cases led directly to unnecessary, avoidable deaths.

In short, with eugenicists in Number 10 and a long history of the Prime Minister being a lying toerag, for many people there is nothing reassuring about daily press briefings from a guy whose fear, incompetence and insincerity still bleeds through everything he does, even – especially – at a time of international crisis.

So, what can be said of the response of the housing sector to the exceptional circumstances we find ourselves in?

A week and a half ago, banks announced they would allow customers to defer mortgage payments if their incomes were affected by the coronavirus. This was a logical decision reached by a strong, independent business which had done some competent, realistic modelling about what the effects of the pandemic might be on its customers.

If there is a question in this piece, it is why haven’t the UK’s social landlords, calmly and publicly, announced some contingency plans for its tenants and its business? It would not even be necessary to assume the worst in order to put in place a couple of key bullet-points about how landlords are going to react to tenants who might suffer a loss of income for any one of a number of reasons as a result of the virus and its spread.

Where there have finally been responses from some housing organisations, they seem to have focused on two main issues. One is, rightly, the safety of residents and staff, including closing offices and for those that can, ensuring people work from home. It’s not clear what support will be available for people who have now realised it doesn’t matter if they don’t go to work but hopefully there will be things in place.

The other main point has been that people will not be evicted throughout the period of the crisis. This has only come about because the government has made a national commitment about it that still lacks enough detail to see how the suspension of evictions will be managed at time of writing.

This has raised an alarm for me, and certainly a few questions. In the day-to-day comms of the UK housing sector, there is a solid belief that landlords, housing associations especially, are great at comms and are thriving, independent, successful businesses. Then, at the first sign of a crisis which needs clear communication with tenants – not just internally but out in the world, too – there is public silence other than on those issues where the government has acted.

We must consider one of the points in Bobbie Hough’s helpful post earlier today about crisis comms: “Don’t promise what you can’t deliver”. A complete failure to act or communicate on any change in rent policy might be a real worry for tenants and people outside landlords trying to ensure people can get through this crisis, but for landlords it’s a natural response. While so much is still unknown, a promise to reduce or waive rents could have serious financial ramifications.

Still, there needs to be an urgent, open discussion about rent. In exceptional circumstances, exceptional responses are necessary. Part of the regulatory requirement for landlords Financial Viability ratings is that they make contingency plans for when things go wrong. Jokes about planning for a zombie apocalypse might raise a smile but at least they would have meant landlords had considered what might happen if people can’t pay rent.

The overwhelming sense of the current general housing sector response is that no matter how many jobs people lose, how many hours are cut, how much income is lost, no matter how sick people get, no matter what tragedy families might befall, the rent eats first.

Landlords are likely to be communicating directly with tenants at the moment, but there are a couple of problems with this being one of the only public responses. Firstly, they can’t prove it. Twitter might not be the only way of communicating with residents, but it is a great way to share that you are doing something. Secondly, it is a way of comparing responses and to open the measures being taken to some form of scrutiny. In addition, I haven’t heard anything specific from my landlord other than the usual advice to get in touch, which feels potentially naïve of them.

The sector has not yet had to respond to the social housing Green Paper or to many of the issues of trust raised by the Grenfell Tower fire, but an insular response in the belief landlords are always doing the right thing at the right time surely can’t be the approach we are expected to accept is now necessary?

All through my Twitter timeline and in discussions with carers and friends it is clear that across the country there are numerous community responses cropping up – local facebook groups – Nextdoor groups – informal support networks that do not include housing providers.

The sector preens its collective feathers every time there’s an opportunity for soundbites about how tenants being at the heart of everything they do, or about how as organisations they are embedded at the heart of communities. These theories have not come to the fore now the chips are down. Overseeing a system promoting long-term rent arrears risks landlords acting against people and communities at a time of crisis. This kind of damage could be difficult to repair once the crisis has passed.

Further intervention on income and rents is required from government, but landlords must end the apparent radio silent on this issue at the time of writing. As things stand tenants and leaseholders should expect a more coherent strategy from their landlords which should be reaching out to include and enhance strong emerging resident and community responses.

Later, perhaps, there needs to be a conversation about the the growing gap between what landlords say about themselves and submit entries for award ceremonies for, and what it turns out they actually do when true innovation, true adaptability and true community cohesion is needed. For now there needs to be a shift to public transparency and accountability.

I am very grateful to those people within and without the housing sector who have contributed to this piece by being open about what they are doing at their own organisations and what the wider implications of the crisis might be on sector responses"

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HeIenaDove · 19/03/2020 18:32

THREAD

twitter.com/MissTillyAndMe/status/1240213234403196933?s=20

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HeIenaDove · 20/03/2020 21:39

www.myclarionhousing.com/about-us/contact_us/servicestatus/

Paying rent
Clarion still has to collect rent during the coronavirus emergency, but we can provide you with some guidance and support on the options that are available to you. If you would like to discuss this with a member of the Customer Accounts team, please complete this form and a team member will be in contact

There will be no evictions in Clarion homes for non-payment of rent during the coronavirus emergency, but we will return to business as usual after it has ended

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