What drives tenancy failure amongst the under 35s? Aimee Ambrose Senior Research Fellow

Transcription

1 What drives tenancy failure amongst the under 35s? Aimee Ambrose Senior Research Fellow

2 Overview 1. Research aims 2. What the secondary data tells us 3. What the primary qualitative data adds 4. Tenants' stories 5. Concluding thoughts: the journey to tenancy failure 6. The client's response to the research

3 Background Centre for Regional Economic and Social Research: a leading policy research centre understanding impact of disadvantage on places and people critical assessment of policies and interventions Commissioned by a consortium led by the Hyde Housing Group and including Family Mosaic, Hexagon, Viridian and Your Housing in Spring

4 Aims To Understand... root causes of tenancy failure amongst under 35s the personal characteristics and barriers contributing to tenancy failure impact and role of support and operational interactions between landlord and tenant To help... develop appropriate interventions identify opportunities for innovation in services influence housing management and support policies

5 Secondary data analysis: Key risk factors in arrears and eviction

6 Confirmation of the problem Analysis of data on 57,000+ tenants Identified risk factors... Younger tenants are more likely to end up in arrears (more exposed to risk factors and age itself a factor).

7 What are the risk factors? Age Gender Household comp Income/rent Employment Previous housing

8 What are the risk factors? In eviction (for arrears) and/or rent arrears Age: and year olds: arrears Arrears decrease over 40 85%+ aged U35 in various levels of arrears highly vulnerable if income reduces year olds: evicted (1.1%) Gender: (Young) men more likely to evicted (46% all evictions) but no direct link to arrears

9 What are the risk factors? Household composition: Arrears more likely in multi-person But evictions more likely in single person households Income/rent: Pay 200+ p/w rent: arrears and eviction Income < 100 p/w: eviction Partial housing benefit (31% v. 11% overall): arrears

10 What are the risk factors? Employment: F/t employment: lower risk but young tenants more likely to be unemployed at start of tenancy (30% of 16-20) Unemployment disproportionately affects YP: arrears and eviction Previous housing: Previously temp or supported accom': arrears and eviction More significant: previously private renting: lower risk

11 Getting beyond the stats interviews with current tenants London, Essex, W Mids and NW. All in arrears to varying degrees

12 Deeper understandings: what the qualitative data adds

13 Key themes Arrears/tenancy management Journey to high rent arrears or eviction Experience of managing tenancies/ personal barriers Relationship with the landlord and seeking help Views on support functions Opportunities for further support The future Experience of homes Housing aspirations and the future

14 How arrears accrue: the theory Probably because we are younger, you re balancing your outer life and things you want to do, I would guess around 35 I d hope I d know enough about living that I can just do it comfortably, whereas at my age I ve had to have a lot of help from my mum with tenancy sustainment, I don t really understand a lot of it, I imagine that s probably it. Inexperience Unemployment Temptation I think cos of job-wise, people can t get jobs or low income, they ve got kids and us young people like to go out and have fun and spend our money on things we might not need but we want.

15 How arrears accrue: the theory Irresponsible? "I think the young ones nowadays think they should be given special treatment, they don t understand, unless they've got children, young people nowadays don t care, they prefer to go out and get drunk than pay their rent. I'm not saying they're all like that but the majority of young people who haven't got dependents, they don t care, they live in a society where everything's given to them for free and that's how they think society should be."

16 Getting into arrears: the reality Insecure employment Benefit interruptions/changes (inadvertent arrears) Low income, increasing outgoings Setting up home (carpets, furniture) Changes in household (divorce, kids leaving home- benefit changes, reduced income) Life events (i.e. bereavement) Mental health problems Physical illness (and lost income)

17 Tenants' stories: the journey to rent arrears

18 Getting into arrears: income Insecure employment and the benefits 'maze' Chesney... JSA claimant, full HB, got into arrears while working. Casual work "not worth the hassle" "I was doing labouring on sites, but it was all temporary work so I just couldn't be arsed with it, cos I'd be coming off benefits and then back on again, it was a nightmare, it took weeks to process and I'd have nothing while they did it."

19 Getting into arrears: income Georgina...works p/t, reduced hours for a "stable income" "I'd been on income support and my rent was getting paid then and I got a job and then I got another job and then I had to fill in loads of forms that I didn't really understand to try and get the benefits sorted...but it came back that I had to pay full rent and Council Tax and that alone was more than I was earning. I gave up one of my jobs and dropped the hours right back on the other so I could go back on Income Support."

20 Getting into arrears: income access to rent makes non-payment more likely... Chesney... "It's better if they take it straight out otherwise I end up spending it...i thought i'd be able to catch up on the rent easy cos i was working but then I stopped working and thought, 'oh, I messed up.'" Letitia... "I wanted to get my sister a really good birthday present. There's no one I can borrow from so I used the service charge money."

21 Getting into arrears: income Low income Clara...works p/t, partial HB. One child. Got into arrears while working due to HB suspension. Borrows regularly from family [What makes it difficult to pay your rent?] "There's the gas and electric...plus food, packed lunches, school uniform, water, TV licence, all of it. There's practically nothing left after all of that, so I have to borrow off my mum, dad or brother. It feels like I'm doing that almost every day."

22 Getting into arrears: income Benefit changes... Becky... Two children. Full HB but pays 'Bedroom Tax' "They wrote and said I had to pay 23 a fortnight for the bedroom tax. I thought that it would go away. But it didn't and the landlord said they would seek possession. The CAB got my DLA back dated and that covered the backlog but going forward, I don't know."

23 Getting into arrears: income Changes to DLA/PIP and changes in family circumstances had also led to arrears... Olena...working p/t with partial HB. Two children. Got into arrears when her HB was stopped. "I was going through a divorce but because i was claiming I was a single person, they were thinking he was still living there and they stopped everything for a couple of months so then I couldn't provide with just this job."

24 Getting into arrears: home Setting up home...covering the cost of carpets a common concern. Claire... "They said I had to buy the carpets before I moved in because of the noise but I wasn't expecting that and didn't have the money and that's what started my money troubles..."

25 Getting into arrears: home Life events Vicky... "I'm struggling [to make the rent], it's more than 400 a month plus arrears. I only earn 5 something an hour...i owe two and a half grand cos I kind of let it go when I had a really bad patch...my Dad died and I was involved in a court case. That's how it happened...i'm only 25, I shouldn't have this much stress."

26 Getting into arrears: illness Martia...accrued arrears while working, then broke her leg and was unable to work. "It was pay the arrears or eat...so I was evicted in the end."

27 Getting into arrears: illness Chris...poor mental health rendered him unable to work and his support needs are now very high. "I didn't pay the service charge the whole time I was in the special unit. I'm in huge arrears but have no way of covering them out of ESA. I reckon it's 50/50 whether I get evicted. I need more so much hand holding even just to fill out a form."

28 The role of inexperience Not as significant as other factors, particularly income No evidence that YP poorer 'tenancy managers' Home and family complications can occur at any time Inexperience in handling rent payments may not be exclusive to YP Inexperience possibly more manifest in responses to problems.

29 Relationship with landlords Disengagement is common and can form a barrier to asking for help Contact often around financial issues Sense that they are 'only about the money' Dissatisfaction with repairs and limited communication undermines relationship tenants then find it hard to see the landlord in a supportive role

30 Tenants' stories: seeking help with rent arrears

31 Seeking help with arrears Landlords did not get in touch until significant arrears had accrued? Tenants unlikely to contact them proactively due to fear and lack of existing relationship Family often first port of call Those with existing support links more likely to enlist support of HA.

32 Seeking help with arrears Clara... [At what point did the landlord get in touch to say you are in arrears?] "That was about November." [How long had the arrears been mounting at that point?] "Since June." [Do you think they dealt with it well?] "Not really, I should have been checking in but I think they should have said something, so it just built up and up. They need to communicate more, they didn't communicate at all."

33 Seeking help with arrears Most who had approached landlords had positive experiences. "I wouldn t bury my head in the sand again, I buried my head in the sand cos I thought they wouldn t understand and want you out straight away but it's not the case, they said we try and work with families, obviously they want good tenants in the property, they don t want properties sitting empty cos it's not earning money for them and I think they do want to help, as long as you're willing to work with them I think they're willing to help you." Becky

34 Seeking help with arrears Johnny... benefit complications led to rent arrears and social anxiety, which meant he couldn't leave the house, compounded matters. "I was sort of leaving it, I started paying small amounts for a while but I stopped cos I had no income and they approached me at the start of this year and said you have to sort it or you re going to be evicted so I ve been working with the tenancy sustainment officer. I guess if they worked with me when the thing started happening...it would have been easier if I d contacted them but I didn t really know what to say, I wasn t going to say I understand I m in lots of debt but I m also not getting any money so I think if they had a way to notice this was going on earlier that would have been better." "They do send letters out but I had no idea that there was a tenancy sustainment officer and she's been the one that's told me the most. If they'd told me about her last years I wouldn't be in anywhere near as much debt as I am."

35 Seeking help with arrears Once contact is established, a range of support is offered including budgeting; income maximisation; help with finding employment; courses, etc. Clara...now has regular engagement with the HA "Since the arrears happened, I see [name] and [name] regularly and they help me with my CV, they've helped me with my financial bits and benefits, council tax and tried to find me a job with the right hours. They bring my rent statement and we look at it every month. If I had problems again, I'd just go to them."

36 Seeking help with arrears Olena...visited a resource centre provided by the HA on her estate. "I was panicking until i spoke to a specialist advisor, of course it would scare anyone that receives a letter that your benefits have stopped, plus a four figure number that you owe. I was ready to go out and borrow money from someone but they said 'no! Don't do that, it's ok'. They calmed me down and i could carry on living my everyday life again."

37 Seeking help with arrears Earlier intervention and emphasis on prevention? Vicky... "When I moved in they didn't tell me nothing about the support they offered. It was only when I got into arrears that they started calling to say they could help. I wish they'd told me sooner."

38 Future plans and aspirations Emphasis on survival and getting by All but one envisage staying in SH for the long term Three aspire to own their own property in the much longer term.

39 Concluding thoughts

40 Often a single event that leaves a legacy Journey to arrears Inexperience? Low income Unemployment Benefit complications Setting up home Personal problems Ill health Do not approach landlord pro-actively Landlord also not always proactive Try and raise the money i.e. informal borrowing, selling things Arrears accrue until crisis point is reached- this is when help is sought/offered Or the 'drip drip' effect of low income Trust Confidence Fear Priorities

41 The clients' perspective

42 Tenancy Failure Research Sharon Wheeler Your Housing Group

43 32,000 Homes Mix of high and low demand areas Universal Credit since 2013 YHG have Money Advice, Tenancy Support and Employment teams

44 Why the research? We think we know why tenancies fail, are we right? Is it us or them? Who is most at risk? And when? Is anything else going on?

45 What s it telling us? There are higher risk groups Employment is crucial Support is useful but can be it can be hard to ask for help Perceptions differ on communication- particularly rent Other business actions e.g. repairs, has impact on rent and tenancy sustainment

46 How we communicate/ build up trust Pre tenancy risk analysis Early support offer based on risk profile Further develop our Employment support offer Help customers create a home- furniture, utilities

47 Sharon Wheeler Community Sustainment and Inclusion Manager Your Housing Group