Agenda item

(a)       That the Committee note the latest financial position for rent collections in 2023/24 as set out in the report; and

(b)       That the Committee support the proposed changes to the Corporate Debt Policy to strengthen the collection of Housing Rent by taking court action, as a default position, in cases where contract holders were not making payment, were 12 weeks in arrears and/or who owe £1,500 or more and who were not engaging with the housing service to address the arrears.

The Service Manager – Revenues and Procurement introduced the latest operational update on the collection of housing rent, an analysis of arears more than £5k, and proposals to strengthen the debt recovery process by amending the Corporate Debt Recovery Policy and automatically taking court action against contract holders who owe the equivalent of 12 weeks unpaid rent and/or £1,500 and who were not addressing their weekly rent payments and arrears.

The Service Manager reported that the collection of housing rent remained an area of risk but total rent arrears up to week 27 were £2.6m compared to £2.7m at the same week in the previous year, an improvement of £100k. 

The Service Manager reported that during the July 2023 Committee meeting, it was agreed to provide Members with an in-depth analysis of those contract holders who owed the Council more than £5k of unpaid rent.  This information was shown at 1.04 the report.

In relation to the Corporate Debt Policy, the Service Manager reported that, although court action was taken as a last resort, there was a growing need to adopt a more commercial approach to the collection of rent arrears to ensure losses in collections were minimised for the Housing Revenue Account (HRA).  Appendix 1 of the report set out proposed changes to parts of the Corporate Debt Policy in relation to collection of housing rent.  The Committee was asked to endorse the proposed changes to the Policy in relation to the trigger points for legal action for housing rent. 

The Chair questioned the number of tenants in arrears between £200 - £500 and asked if this included tenants who paid by Direct Debit.  Officers explained that if a tenants paid monthly by direct debit this could show as them owing £250 but they would not be in arrears, broadly speaking the first column for tenants owing between £200 - £500 could be discounted.

Questions were raised around the additional costs by taking court action and whether the additional costs could be recovered.  The Service Manager agreed to provide information around the schedule of court fees to the Committee following the meeting.  

Comments were made around whether considerations of evicted tenants becoming homeless and then having to be provided with temporary accommodation was considered along with the cost implication attached to that.  Officers explained the work of the Case Review Panel who go through a rigorous process and only once all options had been exhausted would the Council proceed with eviction.  There were safeguards which sat outside the Corporate Debt Policy.  The Service Manager also advised that of those tenants previously evicted, none had been re-homed by the Council. 

Recommendation (a), as outlined within the report, was moved by Councillor Geoff Collett and seconded by Councillor Antony Wren.  Recommendation (b), as outlined within the report, was moved by Councillor Ted Palmer and seconded by Linda Thew.

RESOLVED:

(a)       That the Committee note the latest financial position for rent collections in 2023/24 as set out in the report; and

(b)       That the Committee support the proposed changes to the Corporate Debt Policy to strengthen the collection of Housing Rent by taking court action, as a default position, in cases where contract holders were not making payment, were 12 weeks in arrears and/or who owe £1,500 or more and who were not engaging with the housing service to address the arrears.