4 in 5 council landlords are seeing significant increases in the number of rent arrears

August 2023

4 in 5 council landlords are seeing significant increases in the number of rent arrears: A survey of 28 local authorities and local authority-owned organisations (ALMOS) across England has revealed that four out of five council landlords are seeing a significant rise in the number of rent arrears. 

The survey carried out by council housing organisations, the National Federation of ALMOs (NFA) and the Association of Retained Council Housing (ARCH) found that 85% of landlords reported higher rent arrears amongst their tenants. Together the organisations manage 294,000 homes, which is almost a third of the sector altogether. 

While the number of households in rent arrears was 97,220 last year, the latest survey shows that this figure has risen to 101,200 – a 4% increase in the past year. The amount that these households owe has also risen by 11%. In fact, the average amount owed by each of the households in arrears was up 23% from £427 to £527. 

The research also found that almost 75% of landlords reported increased pressure on local homelessness and housing advice services in the past year, with just over a third of households in council housing receiving Universal Credit and the same proportion receiving housing benefit, which for many will cover rental costs. However some tenants are being left short, including those who have to pay an under occupancy charge, people whose benefits are capped and those with non-dependent deductions. 

The NFA and ARCH have called on the government to increase the basic Universal Credit element, cease paying Universal Credit in arrears as well as improve benefits for people in short-term employee and set a minimum level of benefit. 

Chloe Fletcher, policy director at the NFA, said: “Even tenants with some of the lowest rents in the country are really struggling to make ends meet. Our members house some of the poorest and most vulnerable families in the country and our officers are telling us they are the ones being hit hardest by the current cost of living crisis. Fundamentally, people need more money in their pockets at this incredibly difficult time.”