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Housing and money

Many housing providers are in a strong position to reach financially excluded groups and are becoming increasingly engaged in combatting financial exclusion.

Housing and financial inclusion

Research and Resources 

Many social landlords now include reducing financial exclusion in the work they do with their tenants. There are obvious benefits in this both for tenants and landlords for tenants the improvement in the quality of their life and making them more included in society and for landlords it can be a way to improve organisational cost efficiency and effectiveness.

Tenants in social housing are disproportionately affected by financial exclusion and it is estimated that they make up around 60% of all the financially excluded.

According to National Housing Federation 2007 

figures:

• Nearly one in six social-rented tenants have no bank account, twice as high a proportion as the rest of the population.

• 81% have no savings account.

• 91% have no insurance cover.

The cumulative impact of exclusion is that the communities social landlords serve are losing millions of pounds through high loan interest charges and underclaiming of benefits. Social landlords are in a position to make a major contribution to the promotion of financial inclusion. As ‘trusted intermediaries’ they can make the link to financial inclusion for those that others find hard to reach. As ‘community anchors’ and large social enterprises at the heart of the communities they serve they can facilitate and drive financial inclusion partnerships and projects.

Financial inclusion work can help social landlords become more cost efficient:

• Rent arrears are often associated with a household having wider debts.

• Court actions and evictions, the vast majority of which are on the grounds of rent arrears, are expensive for landlords.

• Tenancy abandonment is often associated with financial stress, and abandoning tenants often leave behind arrears that risk turning into un-collectable debt.

• Dealing with tenants in crisis is much more time consuming than investing in early intervention.

Key housing organisations:

Some of the key organisations working to promote financial inclusion within the housing sector are:

Chartered Institute of Housing is the professional body for people who work in housing. It has produced good practice guides, training and offers support to hosuing professional looking to develop financial inclusion work. It hosts the Financial Inclusion Champions for Housing.

National Housing Federation represents 1300 housing associations across England. It is commited to promoting financial inclusion and is collecting case studies of good practice.

The National Federation of ALMOs is the representative body for ALMOs. ALMOs are 'Arms Length Mangagement Organisation' which manage social housing stock on behalf of local authorities.

Research and Resources 

Financial Inclusion and Rural Social Housing: This guide was produced to offer support and advice to rural social housing providers to assist them in their efforts to tackle financial exclusion amongst their tenants. (CIH and Commission for rural communities 2010) 

Transact's Housing Partnership group developed two 'Making the Link' brochures aiming to increase social landlords engagement in financial inclusion issues. (2008)

Financial inclusion in social housing: policy into practice is available to buy; written by Community Finance Solutions, it is a practical guide to improving social tenants' access to financial services. (2008)

The Chartered Institute of Housing (CIH) produced a Financial Inclusion good practice briefing outlining the national policy context and how housing providers can develop financial inclusion strategies. (2006)

CIH has also reported on financial inclusion activity across the housing sector:

Life After Debt: residents, social landlords and financial inclusion describes financial inclusion policy developments and analyses survey results and case studies of housing organisations promoting financial inclusion (2006).

Breaking Free: financial awareness and the role of social landlords preceded 'Life After Debt' in 2003.

The Housing Corporation's report Community Access to Money provides an overview of the activities housing associations are undertaking to promote financial inclusion. (2005)

Practical examples

RBS Innovate is funded six housing organisations to run projects promoting financial inclusion during 2008.

The National Federation of Housing  has a collection of case studies of housing associations promoting financial inclusion including partnership working with local credit unions and providing free ATMs to tenants. 

Enterprise in Disadvantaged Communities reports on the impact of a Neighbourhood Renewal Fund project in South Tyneside in 2006. The project had an anti-poverty focus, looking at various aspects of financial inclusion including credit union development and financial literacy.

Financial Capability 
The FSA has published guidance on the regulation governing the financial inclusion activities that social housing providers can provide. To view the guidance click here
A Guide to financial capability for social housing tenants, produced by Toynbee Hall and National Housing Federation, is a practical tool for people delivering sessions on various aspects of financial capability to social housing tenants. (2008)
Savings
Save with rent: how social landlords can help deliver the Savings Gateway - this Chartered Institute of Housing publication makes policy recommendations to government and landlords. (2008)
Credit Unions

Credit where credit's due looks at ways to expand the provision of low cost credit to social housing tenants. Produced for the National Housing Federation, the report recommends ways for landlords to partner with credit unions. (2007) 

Insurance

Widening the Safety Net: learning the lessons of insurance with rent schemes considers how housing providers can increase take up of contents insurance, written by Demos in partnership with Toynbee Hall (2005)  

Welfare Rights

For whose benefit? (2010) - This research paper by Shelter suggests reform to the Local Housing Allowance to make it work in the best interest of tenants, landlords and based on survey of 435 LHA claimants. 

Housing Associations & Welfare Rights Best Practice Guide - This guide created by the Scottish Welfare Rights forum aims to provide housing associations with a tool for ensuring that their tenants are getting all the assistance they are entitled to.