RENT ARREARS (Hansard, 21 February 1991)

§ The Parliamentary Under-Secretary of State, Department of the Environment (Baroness Blatch)

I have today arranged for the information to be placed in the Library.

As at 1st April 1990, rent arrears owing to all English housing authorities amounted to some £360 million, (7.8 per cent. of the total rent collectable). This is an increase of 12 per cent. compared with the figure at 1st April 1989. The 10 authorities with the worst arrears represent 37 per cent. of the total; their level of arrears ranges from about 18 per cent. of the rent collectable, in Camden, to about 45 per cent., in Brent. London accounts for 46 per cent. of the national total; total London arrears are £165 million, and nine of the 10 worst authorities are in London; but we are glad to see that seven London boroughs have reduced the amount of rent outstanding to them.

The figures are an indictment of too many authorities for their poor management, and, while a third have improved their performance and deserve commendation for this, the figures show that far too many are not acting upon the advice on rent collection given by the department and the Audit Commission.

The three poorest performing authorities are those that turned in the worst performance last year. In Brent, Lambeth and Southwark, tenants between them owe over £60 million worth of rent. Since the introduction of the new housing finance system in April 1990, the costs of arrears are borne by the tenants who do pay their rent. If some tenants do not pay, either rents generally will go up or the level of service will fall. Authorities are also required to account to their tenants for their housing management by publishing indicators of their performance, from April this year onwards. The Government expect tenants to demand major changes in authorities' policies towards non-payers, and to put pressure on them to ensure that arrears of this magnitude become a thing of the past.