Measures to Overcome Rent Arrears Problem

This student assignment discusses the issue of rising rent arrears in housing associations, particularly due to Universal Credit claimants. It suggests measures that can be taken by management to resolve this problem, such as direct debit payments and close monitoring of accounts. The assignment is relevant for students studying business or management courses.

REPORT
HOUSING

INTRODUCTION
Housing is defined as construction or assigned usage of buildings with the aim of
sheltering people. It involves provision or planning that is delivered by authority to building
constructors (Collins, Malone and Clifasefi, 2013). Usually, governments have housing
authorities that is known as housing department or ministry that ensures that residents of a place
must have a good place to stay. Housing associations are non-profit making and private
organisations which offers low cost social housing to the people which are in need of home. This
report will cover about dissatisfaction of residents about responsive repair services. Also, it will
discuss about level of rent arrears rise due to universal credit.
MAIN BODY
Dissatisfaction of residents with responsive repair services
Responsive repair service is the fundamental duty & responsibility of housing
associations as people residing in their homes cite maintenance and repair services as their
priority. Silver-tree Housing Association is required to provide responsive repair services to their
leaseholders and tenants under their Asset Management Plan but from some time residents are
complaining about repair services due to which they face difficulty in living at those homes.
Repair responsibilities related with housing council and associations:
 Providing gas supply along with arranging repairs associated with gas safety checks.
 Hot water and other heating appliances
 Toilets, pipes, sinks and baths
 electric wiring and other appliances offered by thems
 Common areas like communal entrances and lifts
 Exterior and structure of building involving wall, windows, roof and external doors
In case if any housing association or council does not take repair complaint in a serious
manner or do not follow the repairing agreement signed between association and the tenant then
residents can again ask them to perform their responsibilities in a proper manner. Even after
requesting again, if Council is taking long to do repairs or do not follow agreement then people
can make complaint against them (Balchin and Rhoden, 2019). This can leads to pay of fines
and penalties due to which Association can face heavy loss of revenues along with repairing
compensation to residents.
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Responsibilities of residents
 Main responsibilities of the residents is to report repairs and maintenance in a timely
manner.
 Keeping garden area and houses in a clean & tidy manner.
 Paying and fixing for the damages which are caused by either them, their family or their
guests.
 Performing minor jobs like replacing light bulbs and smoke alarm batteries
These are some responsibilities and duties which must be followed by the residents in
order to live in a clean and well maintained surrounding. If these responsibilities will not be
fulfilled then Housing Association can take strict actions. In case of houses provided by Silver-
tree Housing Association, people are facing them repair and maintenance problem that results in
complexities and difficulties while performing daily basis tasks. Basic issues which are faced by
most of the residents is that sink doesn't drain properly due to which washing utensils and clothes
became difficult. Beside this, another problem that is faced by residents is that flush on toilet
doesn't work and doors of main gate also require maintenance. People have also complained
about water leaks, stair lightening failure etc. Due to this, people living in those areas are not
satisfied with responsive repair services and started to search for another place to stay (Favilukis,
Ludvigson and Van Nieuwerburgh, 2017).
In order to resolve these issues, it is essential for the management in Silver-tree Housing
Association to analyse the situation in a deep manner so that all the problems which are faced by
residents can be sorted out one by one. This will assists in gaining back the trust of residents and
enhancing their satisfaction level by providing them a properly maintained houses. Different type
of repairing and maintenance measures that can be provided by silver-tree Housing Association
to resolve the issues of residents are mentioned below:
 Repairing of worn, dull, dirty and clogged equipments: Repairing is often associated
with replacement of used components that is required to be renewed on a periodic basis.
These equipments are worn out batteries, light bulbs, overfilled vacuum bags, leaky
washers, plumbing traps etc. Another important repair in this regard is overflowing or
difficulty in toilet flush. If management of Housing Association will provide these repairs
on a timely and periodic basis, then residents will not have to face issues related with this
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problem. This will helps in enhancing the satisfaction level of residents staying in houses
provided by Silver-tree Housing Association.
 Replacement of Broken and Damaged entities: It is another kind of responsive repair
service that must be given by the management of Silver-tree Housing to its residents so
that no issues or grievances related with damaged and broken entities can be faced. There
are some equipments like damaged appliances, furniture, windows etc. Repairing them is
hard but replacing them is easy. If concerned Housing association will replace it in a
timely manner then it will no problem will be faced by residents due to appliances,
windows and furniture. Also, their stay homes will be well maintained due to which they
will feel more satisfied in staying there (Glaeser and Sinai, 2013).
 Emergency repairs: Another kind of repair and maintenance service that must be
provided by Company to the residents is emergency repairs in a timely manner. In some
cases, if a resident files a complaint about an emergency repair, it is the responsibility of
Housing association to take it sincerely and resolve the issue in a timely manner.
Emergency repairs will include repairing of locks and doors, power loss, electronic
appliances failure, no water etc. If these issues will not be resolved on time, then image
of company will reduce and grievance residents can file case against the Housing
associations.
Above mentioned measures will helps in improving the responsive repair services that is
given by Silver-tree Housing Association to its customers.
Level of rent arrears rising due to introduction of Universal Credit
Rent arrears: It is defined as a situation in which tenant is not able to pay rent on time.
The owed money is known as rent arrears. These are the priority debts, if these debts are not
considered in a serious manner then tenant can face the risk of eviction. This all situation results
in breach of tenancy agreement (Murdoch and Abram, 2017).
Universal credit: It is specified as social security payment which is related to simplify
incentivise paid benefits and working age benefits. It combines and replace six means tested
benefits such as support allowance, employment based income, jobseekers allowance, housing
benefits, income support, child and work tax credit. This policy was introduced in 2010 by work
and pension department.
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Average arrears on new universal credit is around eight percent. Rising level of arrears is
not a resultant of small amount of tenants which accrue large amount of arrears. Reason due to
which residents faced rent arrears is that they faces some unexpected expanses which forces
them to withdraw amount form their rents. These unexpected expenses may arise due to
breakage in electric appliance, health illness or unexpected accidents. Universal credit posses an
adverse impact on housing associations and their income streams. In case of housing
associations, they believe that they are facing high rent arrears due to enhanced caseload at a
single time (Stefancic and et. al., 2013).
Negative impact of universal credit on housing associations
Housing associations are highly worried regarding level of rent arrears increased because
of tenants on universal credit. This will results in increment of homeless and evictions. Some
housing associations said that they will stop renting homes to universal credit claimants as they
possess a high risk of arrears. Legislation and bureaucracy associated with tacking arrears
problem are very complex. In case of Silver-tree Housing, management of company stated that
the accumulation of bad debts on residents due to Universal Credit can impact their
housebuilding plans (Stephens and McCrone, 2017). Housing associations receive more than 350
million every year in rent payments for working age tenants under housing benefit system but
under this new Universal Credit system, money will go directly to the residents and they will pay
their rent themselves
There are some measures that can be initiated by management of Silver-tree Housing
Association so that the problem with rent arrears can be resolved properly.
Measures to overcome the problem of rising rent arrears
 Company can ask the tenants to pay by direct debit or standing order so that any
misunderstanding or error can be cut down.
 Keeping close eye on accounts will help the manager in Silver-tree housing association, it
will helps in acknowledging which tenant have not paid tax so that issue can be resolved
timely.
 If residents are not interested in Paying then housing association can take help of court
and laws against the tenant.
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CONCLUSION
From above mentioned report, it has been concluded that it is the right of every person to
have a safe and secure house with proper facilities. In this regard, housing associations are
responsible to perform regular repair and maintenance so that tenants will not have to face issues.
Universal credit is beneficial for the residents as they get access to money given by government
but it impact the working of housing association in a negative way.
REFERENCES
Books and Journals
Balchin, P. and Rhoden, M., 2019. Housing policy: an introduction. Routledge.
Collins, S. E., Malone, D. K. and Clifasefi, S. L., 2013. Housing retention in single-site housing
first for chronically homeless individuals with severe alcohol problems. American
journal of public health. 103(S2). pp.S269-S274.
Favilukis, J., Ludvigson, S. C. and Van Nieuwerburgh, S., 2017. The macroeconomic effects of
housing wealth, housing finance, and limited risk sharing in general equilibrium.
Journal of Political Economy. 125(1). pp.140-223.
Glaeser, E. L. and Sinai, T. eds., 2013. Housing and the Financial Crisis. University of Chicago
Press.
Murdoch, J. and Abram, S., 2017. Rationalities of planning: development versus environment in
planning for housing. Routledge.
Stefancic, A. and et. al., 2013. Implementing housing first in rural areas: pathways Vermont.
American Journal of Public Health. 103(S2). pp.S206-S209.
Stephens, M. and McCrone, G., 2017. Housing policy in Britain and Europe. Routledge.
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