The Housing Head of Service provided an annual overview on
rent collection within the Council’s general housing stock covering the
financial year (FY) April 2024 to March 2025.
It was noted that:
- The FY
was marked by outstanding performance, with almost 99% of rent collected.
When benchmarking with other urban authorities, Leicester had amongst the
highest collection rates and lowest eviction levels.
- By
the end of the FY, £1.7m arrears were outstanding, which was 15% lower
than the previous FY. Despite increasing pressures, rent rates remained
lower than the previous years, and the housing team had managed to keep
them steady.
- Like
most social landlords nationally, the Council faced significant challenges
with the collection of rents and service charges because of the widespread
deprivation and cost-of-living crisis, conditions which significantly
affect Council tenants.
- Notwithstanding
the challenges, performance remained strong as only four (4) households
were evicted in the past year, none of which were families. The Council
continued to support people in sustaining their tenancies, with most
evictions related to property abandonment, e.g. the tenant had already
left
- Since
April 2024, 59 rental possession claims were instituted in court, which
equated to an average of 5 cases per month, compared to pre-COVID averages
of 80 cases per month. This reflected a 90% annual reduction, which was a
significant accomplishment.
- The
Discretionary Housing Payments (DHP) and Household Support Fund (HSF)
played a vital role in achieving the foregoing successes. In the past
year, nearly £1m was allocated to support approximately 1400 vulnerable
tenants. An additional £800k had been allocated this year, and the Housing
Division would continue to focus on targeting those who were most in
need.
- A
key consideration for providing support was for the tenancies to be
sustainable and for tenants to have the mechanism for managing future rent
payments - there were payment plans in place to support this.
Additionally, over 5,000 tenants had received support with utilities and
food.
- A
key challenge was the roll-out of Universal Credit (UC). Currently, around
9300 tenants (constituting about 50% of Council tenants) were claiming UC,
52% of whom were in rent arrears. To manage this, a specialist team of
Rent Management Advisors worked closely with the most vulnerable and
complex cases. The team’s work was critical to tenancy sustainment, as in
the past year, 1,111 referrals were handled (9% higher than last year’s),
77% of which were identified as having vulnerabilities.
- Pressures
from the rise in inflation and the ongoing changes to benefits were likely
to intensify in the coming year. However, the Housing team remained
confident in its position to navigate these challenges.
The Deputy City Mayor, Housing, Economy and Neighbourhoods
commended the performance for the FY, noting that it demonstrated the Council’s
commitment to supporting its residents to remain secure in their tenancies and
making effective use of processes and available discretionary
funds.
In response to questions and comments, the following points
were made:
- The
effect of added pressures, like reduction in housing support and migration
of 50% tenants to Universal Credit, would be mitigated against in some of
the following ways:
- By
constantly evaluating the availability of the right resource within the
team e.g. the establishment of the Rent Management Advisory team to fill
service gaps.
- The
caseload of income officers would be constantly reviewed to allow for
fresh perspectives on issues. Pop-up sessions had also been
established.
- Staff
had also recently received training on Council Tax Support to better
assist struggling tenants.
- The
HSF had a robust process for ensuring it was correctly allocated.
The Housing team was working with the Revenue and Customer support teams
to identify the most vulnerable, and there was data sharing with DWP,
ensuring early intervention and supporting with UC claims, so that tenants
do not miss their transitional period.
It was further noted that:
- The
£1m HSF referenced in the report was primarily used for rent arrears
support, and in some exceptional cases, district heating arrears. There
had been an additional amount allocated for food utility and heating.
Historically, tenants were able to benefit from HSF once, but the current
process allowed for discretional allocation, depending on the
circumstances of the beneficiary. This process was subject rigorous
scrutiny.
AGREED:
The Commission noted the report.