High arrears in cities attributed to higher staff attrition and additional complexities of density
Major urban areas have experienced a surge in social housing rent arrears, according to the latest survey from benchmarking company Housemark.
Manchester saw an increase of 27.6% and London 19.5% in arrears for the year to 30 June compared to the same period last year. Other parts of the country by contrast have seen a notable drop in arrears.
Landlords in Scotland have reported a notable decrease in arrears, down by 20.3%, and rural areas across the UK have shown improvements too.
At a national level, the stark divergence has balanced out to a relatively steady rate, ending June 2024 at 2.78%.
Housemark’s monthly Pulse survey, which collected and analysed data from 158 social landlords over June 2024, found high urban arrear rates were due to higher staff attrition and the complexities of managing densely populated areas.
Jonathan Cox, chief data officer at Housemark, said: “These findings demonstrate the diverse challenges faced by social housing providers across the UK.
“While urban areas grapple with rising arrears, many rural regions are bucking the trend with effective management strategies.
“This underscores the importance of understanding regional dynamics and their impact on housing management and rent collection.
>> Read more: Social housing tenant satisfaction drops to five-year low, Housemark analysis reveals
“Interestingly, 44% of landlords who reported improved tenant satisfaction between 2023 and 2024 had utilised Housemark’s consultancy services. This highlights the critical role of data quality and customer experience in driving improved performance among social housing providers. Housemark remains committed to supporting landlords with data-driven insights to navigate these complexities and enhance tenant satisfaction.”
Other findings from the Pulse survey include analysis of the year-end tenant satisfaction measures, which shows that just three in 10 landlords recorded increased satisfaction rates between 2022/23 and 2023/24.
There was also a 19% rise in complaints volumes between June 2023 and June 2024, driven by landlords ending the practice of recording informal complaints.
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