The COVID-19 pandemic had a significant impact on housing associations during 2020, with rent arrears in some organisations reportedly rising between 40–50%. This increase follows the latest figures from the ONS putting unemployment levels at 4.9% between August and October 2020, up from 3.8% in the same period in 2019. With the £20 per week boost to the Universal Credit standard allowance due to be cut in April 2021 and further job losses expected, housing organisations will need to prepare for these challenges continuing well into 2021.
Housing associations can mitigate the risk of increasing rent arrears through effective arrears management using specialised debt management and collection solutions. Importantly, with an abundance of products available on the market, organisations must carefully consider whether the system’s key capabilities meet the particular needs of the housing sector.
Evaluating a new debt management system: What does your organisation need and how can it be delivered?
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