Agenda item

To receive a report from the Head of Housing & Health setting out the principles and the overall approach MDH takes to collect rent, service charges and other payments, prevents arrears, manages arrears and ensures that effective and appropriate action is taken to sustain tenancies and maximise income/reduce debt.

The Group had before it a report * from the Head of Housing and Health setting out the principles and the overall approach that Mid Devon Housing takes to collecting rent, service charges and other payments, prevent arrears, manage arrears and ensure that effective and appropriate action is taken to sustain tenancies and maximise income / reduce debt.

The policy was in need of updating and the following summary was provided:

·         Officers worked proactively with tenants experiencing financial difficulty to prevent debt becoming bigger where this could be achieved. However, many were experiencing the effects of the cost of living crisis and housing rent increases.

·         Despite this the rent collection rate was 98% which was an extremely positive result given the current economic position.

·         It had been possible to achieve this position with only 7 evictions overall.

·         It was a key focus of the service to sustain people within their tenancies for as long as possible.

Discussion took place regarding:

·         It was confirmed that when tenants contact MDH to express their dissatisfaction with something in the income management process then MDH would always have informal discussion to see if things could be put right within quickly, however any complaint was still registered within 5-days so it could be actioned properly.

·         The debt recovery process has several stages each with its own timeline, however there was flexibility within the policy approach so MDH can pause at any stage if there was positive engagement from the tenant. As such, each case was dealt with on a case by case basis and in reality has its own timeframe.

·         The assistance of local Ward Members was encouraged if it could be found to resolve a particular issue.

·         Eviction was an absolute last resort and it was a difficult balancing act weighing up the needs of the HRA in terms of people paying rent versus creating a new homelessness pressure.

RECOMMENDED to the Cabinet that the updated Income Management Policy and Equality Impact Assessment contained in annexes A and B respectively be approved.

(Proposed by Cllr A Glover and seconded by Cllr H Tuffin)

Reason for the Decision

Rent collected was paid into the Housing Revenue Account for dwellings and garages/garage ground rent plots (GGRP) and car parking spaces. It was therefore important to maintain the revenue stream. However, as Council housing is designed to help those in housing need, there were many vulnerable people on low incomes living in Council properties. As a result of this consideration must be given to individual circumstances when making decisions about tenancy enforcement action.

The MDH tenancy agreement contained a clause which stated that tenants were responsible for paying their rent and other charges on time. Rent was due on a Monday. The Housing Service offers tenants many different methods of payment and also accepted payments on a weekly, fortnightly or monthly basis as long as rent was paid regularly.

Having a clearly defined policy ensures consistency of approach and ensures that no tenant or resident was treated any more fairly or unfairly than any other.

Note: * Report previously circulated.