Social housing repossessions at lowest ever levels

Published on

Housing Association rents arrears policies are working according to Mobysoft, a rental data analytics provider.

Data from PCOL was analysed by Mobysoft, which concluded that, in the year 2000, 81% of landlord possession claims were from the social as opposed to the private sector. By the end of 2014, this figure had dropped to 62.1%.

While the private rental sector has grown, the analysis also supports the fact that housing associations have made considerable headway in their arrears management. This is supported by reports from housing associations such as Amicus Horizon which has reduced their court cases by 260 in just ten months and saved £40,000 in 2015 alone. Eviction rates by the association have also reduced year on year from 62 in 2012/13 to 45 in 2014/5.

Derek Steele, CEO of Mobysoft said: “Although the percentage reduction in social housing repossessions is in part a reflection of the growing private sector, it also shows the huge progress that housing associations have made in their arrears management.

“The roll out of Universal Credit could be the real test for many housing associations’ arrears management, and we would encourage any association that doesn’t already have very robust reporting, metrics and collections policies in place to do so fairly quickly as our experience with arrears shows that, once they start, they are very challenging and expensive to bring back under control.”

Mark Walker, head of income at Amicus Horizon, added: “We believe in tackling the problem of rent arrears sensitively. It is all about early intervention, and we are now able to sustain more tenancies and have 500 less residents in arrears compared to last year.

“In our particular case, we have employed Mobysoft’s RentSense, whose unique analysis of our tenant data has enabled our income team to become more efficient and focus their time and resources on the tenants that really do need support. As a direct result of using this tool, our arrears fell by £325,000 in 2014.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Nationwide cuts mortgage rates across fixed and tracker range

Nationwide has cut mortgage rates across its fixed-rate range and reduced selected tracker products. The...

Top proptech providers join forces

Four of the UK’s leading Proptech providers – LMS, Landmark Information Group, InfoTrack and...

Landbay launches new remortgage AVM products

Buy-to-let lender, Landbay, has launched new premier remortgage AVM two-year fixed-rate products and reduced...

Second charge boost as industry veterans launch Flamingo Money

Two experienced specialist finance professionals have launched a new secured loans and second charge...

Approvals hit a 2.5-year low: When broker value gets proven – or missed

Net mortgage approvals dropped to 56,200 in May – the lowest since December 2023...

Latest publication

Other news

Nationwide cuts mortgage rates across fixed and tracker range

Nationwide has cut mortgage rates across its fixed-rate range and reduced selected tracker products. The...

Top proptech providers join forces

Four of the UK’s leading Proptech providers – LMS, Landmark Information Group, InfoTrack and...

Landbay launches new remortgage AVM products

Buy-to-let lender, Landbay, has launched new premier remortgage AVM two-year fixed-rate products and reduced...