Technical Notes 2023, Issue 66 - Rent Arrears update
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1. The purpose of this Technical Note is to provide Elected Members with an update on East Dunbartonshire Council tenant’s rent arrears for the last financial year.
2. For the financial year 2022/23, the rent arrears outcome was £986,147.15, set against a target of £1,000,050. This was a decrease of £88,327.40 against the financial year end outcome for 2021/22. This outcome has been achieved despite the current economic challenges being faced due to the ongoing cost of living crisis.
3. The Housing Service continues to prioritise the maximisation of rental income through a dedicated team, whose role is to actively pursue rent arrears and to provide support and advice to those tenants struggling to pay their rent. The service was enhanced through an additional 2 Housing Officers being added to the team during April 2022. In addition to the full reintroduction of all rent arrears processes in 2022, following the pandemic restrictions, limited court action was still allowed in terms of the eviction of some tenants who were in serious rent arrears.*
*The Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Dates and Rent Cap Modification) Regulations 2023, has extended the moratorium on evictions until 30 September 2023. This prohibits evictions of tenants for rent arrears below the amount of £2,250. The Scottish Government also has the ability to extend this moratorium for a further six months after this date.
4. For financial year 2023/24, the Housing Service will look to reduce rent arrears further, utilising all methods available to address escalating rent arrears, while specifically using the following key assistance actions:
- promoting and administering the Hardship Fund, where applicable, to assist tenants who have accrued rent arrears through no fault of their own. The budget of £100,000 resulted in a spend of £99,652 with 142 tenants being assisted;
- promoting appointments at Job Centres through the joint working of Housing Officers and DWP Work Coaches assisting tenants whose rent is paid, or partial paid, through Universal Credit (this resumed on 4 April 2023 at Kirkintilloch Job Centre); and
- through early intervention support, which was recently introduced to assist with tenancy sustainment, in an attempt to alleviate early tenancy rent arrears. This is done though offering new tenants, at the time of an offer of acceptance of their new tenancy, an opportunity to discuss rent liability, payment methods such as setting up Direct Debits, and assistance to apply for any benefit entitlement, where this is applicable. A dedicated part time officer is carrying out this support.