Pilot scheme extended to help reduce rent arrears

A pilot scheme for rent collection in Perth and Kinross is set to become permanent.

The housing and health committee agreed to continuing the direct collection effort in a move to curb rent arrears.

It was originally introduced in January 2016, following on from a previous local authority move which cut the number of places rents for those in rural areas could be paid.

Currently the council successfully collects 98% of its housing rent, but this is lower than the national average of 99.5%. The amount of rent arrears in Perth and Kinross is increasing at a higher rate than in other local authorities in Scotland.

Last year’s pilot scheme collected more than £226,000 in rent from local authority housing, and successfully reduced the council’s rent arrears from 12.78% of all their housing rent in March 2016, to 10.44% in February 2017.

The report presented to the committee highlighted the importance of supporting tenants with rent payments, and said:“It is important that housing staff and other frontline officers across the council understand the issues that people face, including changes to the benefits system and challenges with managing their household finances. It is important for tenants to be appropriately supported by staff to maximise their incomes, have budgeting skills, and where appropriate, can be given help and advice about employment opportunities and support.”

The report’s conclusion to recommend making the scheme permanent explained how the changes had seen an improvement in rent collections:“A key element of this service’s approach to preventing and minimising rent arrears is to maximise face-to-face contact with tenants. This means officers working locally, meeting tenants in their homes, offering support and emphasising the need to keep rent payments up-to-date.”

After the meeting, the chair of Perth and Kinross Tenants and Residents Association Derek Wilkie recognised the easiness in collecting rent payments this scheme provides, but did raise safety concerns over housing officers entering people’s homes to collect payments.

The motion was approved with no questions or comments.