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‘Disgraceful’ level of rent arrears slammed
DISGRACEFUL LEVELS ... says Coun Peter Boyack.
CASH-strapped South Tyneside Council is losing out on vital funds as a result of ‘disgraceful’ levels of rent arrears, a councillor has warned.
In the six months from April last year, 967 residents ended their tenancy agreements with South Tyneside Homes – leaving the properties standing empty.
And members of a housing select committee were informed this week that it took an average seven weeks for borough homes to be re-let, meaning less cash going in to Town Hall coffers at a time when bosses must find £20m savings in the new financial year.
Coun Peter Boyack, Labour representative for Whitburn and Marsden, had estimated that “in the region” of £2m in rent arrears were now owed to the authority, but John Musson, director of housing at South Tyneside Homes, said the actual figure at the end of December was £1.386m.
And Coun Boyack said the amount of time taken to re-let empty homes was hitting the council in the pocket.
He added: “There were 967 terminations of tenancy over the period, and the average re-let period is seven weeks.
“Working on the basis that it is the loss of £500 per property, that amounts to a rent loss of £500,000. That’s absolutely disgraceful.”
The report comes at a time when the council is already dealing with £4.4m in unpaid council tax
John Musson, director of housing with South Tyneside Homes, admitted there was a problem with levels of empty properties in the borough, but said great strides were being made to tackle it.
Mr Musson said: “Since South Tyneside Homes was established in 2006, rent arrears have reduced year on year. Despite the economic climate, this trend has continued throughout this financial year.
“In December, we collected 103 per cent of the rent debit from tenants, which included advanced payments and tenants paying off arrears.
“These successes have been achieved by offering tailored support to tenants, helping them to manage their money, pay their rent and reduce any arrears.
“At the end of December, the level of rent arrears in the borough stood at £1.386m. This figure is £24,000 less than at the same point in 2010.
“There is a problem with empty homes, particularly in the area of a low demand for sheltered housing, and we have set up a review to address that.
“But I can say that year-on-year, month-on-month, we are improving performance on rent arrears, despite the economic climate.”
Committee members were also warned that benefit changes, including the introduction of Universal Credit next year – whereby housing benefit will no longer be paid directly to the local authority – could add more pressure to the collection system.
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Wednesday 23 May 2012
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Comments
There are 11 comments to this article
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tynesider
Friday, January 27, 2012 at 01:23 PMand who is taking about benefits ? they are not the people in arrears and trouble , it is those who are self employed , you too are way out of touch with reality .
tynesider
Friday, January 27, 2012 at 01:21 PMWavydavey , I take it your not affected by the austerity measures, which brings me to my next point , The wealthy feed on the poor , i forsee a class war and its bloke,s like you who are the main contributors to it .
Wavydavy
Thursday, January 26, 2012 at 04:19 PMIt's a tough life but the bottom line is if you don't pay your rent, out you go. It's the same if you don't pay for your car, working or not.....it's gone and not after months of warnings to pay. The benefit system has been taken for a ride for years by a growing minority. I would guess that the majority that don't pay and who may or may not not be working have a colour TV, subscription to sky and all the other trimmings that should be got rid of to focus payment on their real responsibilities like keeping a roof over their head. They don't because they know the local government will not put them out. And who pays? the hard working tax payer. Tough times I'm afraid call for tough decisions.
myviewonlyandonlymine
Thursday, January 26, 2012 at 03:11 PMI agree with papagray, personally I can't understand why the housing benefit isn't paid directly to the council, it'd save the government a fortune in admin fees. These sorts of people in social housing clearly can't control their finances otherwise they wouldn't be in social housing in the first place. Clearly they have no respect for the hand that feeds them, ie: you and I the tax payer. Against their human rights my eye! All of us have had to suffer in these hard times, with rising living costs and the like, but most responsible people cut back on luxuries. But no not the people who make a career out of handouts, maybe they should cut back on the fags, special brew and scratch cards!
papagray
Thursday, January 26, 2012 at 10:23 AMit should revert back to the old system that the benefit is paid directly to the landlord,not the tenant, that way it ensures a roof over their heads. the new system brought in because it was against their human rights shows how many problems the human rights act has been manipulated to benefit the tenant short term only. with regret this was brought in by the labour party..
tynesider
Thursday, January 26, 2012 at 06:09 AMQ . Do you really think that after a good nights sleep , people wake up and say " right i am going to get into financial difficulty today " eeeeeeeeeee well i never .
geordie999
Wednesday, January 25, 2012 at 09:44 PMnothing compared to the rent arrears next year ...those on benefits will see a chunk taken away if they have bedrooms with no one in them ..can they afford to make up the difference .....?
Heinrich Scrotwengler von Grossteschattenburg
Wednesday, January 25, 2012 at 05:51 PMI regret to say that I have always thought of 'social housing' as being overpriced slums for suckers. I agree with sanddancer and tynesider.
tynesider
Wednesday, January 25, 2012 at 05:48 PMDont really know what ya gettin at son , what i trying to portray, is the whole country is 1 trillion pound in debt , therefore it will reflect on rents , mortgages , bills etc .............. sky tv ? eh mobile ? ya mad u
sanddancer
Wednesday, January 25, 2012 at 04:45 PMI agree Tynesider its a disgrace, they also have to pay for their full sky package, and mobile phone bills first. How dare the council expect the rent.
tynesider
Wednesday, January 25, 2012 at 04:24 PMPeter , shame on you . Of course there will be arrears, with ALL bills not just the local authorities. You my friend should show a little respect and empatyhy as this is one of the most deprived areas in the country .To stay alive the people must eat first , then pay rent , & rising utilities ,I am sure its a case of i,m alright jack with some councillors these days............NO IDEA HAVE YOU ..
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