Social landlords in major urban areas experience sharp rise in rent arrears

Its monthly Pulse survey collects and analyses data from 158 social landlords “to highlight the complex and varied challenges faced by social housing providers”. 

Housemark suggested that urban environments are contending with escalating arrears “due to higher staff attrition and the inherent complexities of managing densely populated areas”.

The survey revealed a contrast between these areas and Scotland, where arrears are down by 20.3%. 

The overall national rate of rent arrears has remained relatively stable, ending June 2024 at 2.78%.

Rural areas across the UK were found to have shown improvements.

“Rural regions showcase more stable housing management conditions and effective income recovery practices, resulting in reduced arrears,” Housemark said.

Other key findings from the latest survey included: 

• The latest analysis of year-end Tenant Satisfaction Measure (TSM) results showed that 3 in 10 landlords recorded increased overall satisfaction rates between 2022/23 and 2023/24.
• There was a 19% rise in complaints volumes between June 2023 and June 2024; 3.86 to 4.57 stage 1 and 2 complaints per 1,000 homes (organisations reporting in both months).
• This rise seemed to have been driven by landlords ending the practice of recording informal complaints in line with the Housing Ombudsman Service’s complaint handling code.
• Despite this, Housemark analysis showed as many as 1 in 3 landlords have below-average complaint volumes and could be risking non-compliance with the Housing Ombudsman’s complaint handling code.

Jonathan Cox, Chief Data Officer of 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.”

Harry Rodd