Holding on to Home Report – Tenancy Sustainment in Social Housing

The link between financial and socio-economic circumstances and antisocial behaviour has been frequently explored, often touted as an important indicator, and a link that is often tightly interwoven. Perception is often just as impactful as actual and can often severely impact a community and an individual. Findings from the British Crime Survey (BCS) demonstrate that area characteristics are the strongest predictor of perceived high levels of ASB.^[1] In that regard then, for that reason alone we should be concerned with the financial health of those living in social housing. This is furthered by the body of research that reiterates the correlation between antisocial behaviour and socio-economic situation.^[2] Research also highlights the negative influence of neighbourhood-level deprivation on children and their antisocial behaviour consequently.^[3]

Of course, macro-economic circumstances are often out of our control, and we can often only be reactive to the litany of issues that often blight our communities. However, research from a major study of tenancy sustainment in the social housing sector, the Holding on to Home study, highlights some key recommendations in how to deal with the financial challenges faced by tenants, particularly the drivers of rent arrears. This important piece of research highlights the key recommendations and analysis presented to best safeguard tenants, and therefore our communities.

Data collection for the study was centred on four case study landlords in England, of which three are Resolve members. These were: Southern housing, Walsall Housing Group, Stockport Homes and East Riding of Yorkshire Council.

Financial difficulties are, of course, faced by the social housing sector. As pressures increase, and budgets contract, it is only expected that providers feel the burden. In the research from the report, it was noted from one stakeholder that the current environment is “the toughest it’s ever been… involving a whole panoply of different challenges”. The housing crisis continues to ravage the UK, and as a result demand is ever increasing. Some of the challenges identified by the landlords’ queries are the vulnerability of social housing tenants; the roll-out of Universal Credit; staffing challenges; siloed ways of working; and the challenge of reaching tenants who have fallen into areas. It was found through the research, that most tenancy sustainment activity was reactive, meaning that it is broadly concerned with engaging tenants who have accrued rent arrears. It was found that landlords did undertake preventative work with some key tenant groups.

Financial Difficulties of Social Housing Tenants

The scope and gravitas of financial difficulty found by the research among tenants was severe. It was found that arrears figures were an inadequate picture of financial difficulty, as rent and housing is often for many an inelastic good, and many will often prioritise other spending in favour of housing. It was found that nine per cent of those surveyed were in arrears, while 70 per cent were finding it difficult to pay their rent. It was established that there is a lost group of tenants, who are at risk of arrears but are not recognised due to them not yet being in arrears.

As the cost-of-living crisis has continued to worsen, the financial circumstances of some social housing tenants grow to be worrisome. The survey data highlighted that there were below average income levels to the national average, with a high proportion of those in receipt of benefits, and a lower-than-average employment rate; 36 per cent were in paid employment. 66 per cent had no savings; 43 per cent said their household income did not last until their next payment, with one quarter behind on a bill, and 21 per cent used food banks. Often those in employment were on casual contracts, which increased difficulty with understanding projected income. When tenants where in paid work, it was found that it was often not protecting tenants from poverty and rent arrears.

As an inelastic good, tenants often prioritise rent over other essential items. 69 per cent of respondents were cutting back on food, incurring debt, and selling personal items in order to pay rent. In total, 61 per cent had cut back on essentials such as good and heating.

Landlord and Tenant Communication and Key Recommendations

It was found in the report that engagement between landlord and tenants is a key element in maintaining tenancy sustainment, enabling residents to be offered support. Anxiety and stigma were often found in tenants in most need, and therefore, they were less likely to seek it out on their own volition.

The report identifies a few recommendations, which can be viewed in detail, however a few key recommendations were:

• Landlords should develop tenancy sustainment strategies that focus on the priority areas of generating accurate, relevant data; maximising tenant incomes; and improving communications and engagement.
• Landlords should prioritise improving data collection and systems to support early tenancy sustainment intervention. It is vital that landlords can identify tenants at risk of arrears and who need support to maintain their tenancy.
• When developing interventions to improve rent payment levels, landlords should focus on activities that maximise tenants’ income, rather than those that seek to improve motivation and financial capabilities.
• In the context of scarce resources, it is crucial that landlords, in the words of one of them, “make every conversation count”. Every contact with a tenant is an opportunity to identify tenancy sustainment risks, and to better understand tenants. Tenancy sustainment should be the responsibility of all staff, and it is essential that information systems are integrated.

As the cost-of-living crisis continues to unfold across communities in the UK, both tenants, and landlords, are experiencing challenges that threaten the stability of housing provision. Financial good health is a key indicator for a variety of positive outcomes, and as a result identifying where we can best help those in difficulty is instrumental in safeguarding communities. This piece of research, as is others, is key to understanding the difficulties we face. We will continue to be at the forefront of these issues, and as always encourage an open dialogue on these issues.

^[1] https://eprints.hud.ac.uk/id/eprint/9209/

^[2] https://www.sciencedirect.com/science/article/pii/S0272735814001652

^[3] https://psycnet.apa.org/record/2009-09998-021