Bishop of St Albans asks Government to consider link between under-occupancy charge and rent arrears in housing associations

On 24th June 2014, Baroness Quin asked Her Majesty’s Government when they expect to publish their interim review on the under-occupancy charge.The Bishop of St Albans, the Rt Revd Alan Smith, asked a supplementary question:

Bishop of St AlbansThe Lord Bishop of St Albans: My Lords, the Ipsos MORI report, undertaken by the National Housing Federation in February this year looked at 183 housing associations. It found that two-thirds of tenants affected by the underoccupancy charge were in rent arrears and 38% indicated that they were in debt. That is the equivalent of 72,000 tenants in housing associations in debt in England alone, which seems to be allied in some way to the underoccupancy charge. What assessment have Her Majesty’s Government made of the impact on housing associations of rent arrears because of the underoccupancy charge?

Lord Freud: We have a general look at the level of arrears through the Homes and Communities Agency, whose statistics show that arrears have fallen—not risen—for the past two quarters in a row. The average rent collection rate for associations remains at 99%, a very high figure, which is very much at variance with some of the stories that we hear and the data that the right reverend Prelate referred to.

(via Parliament.uk)