One in four Leicester City Council tenants late on rent

Officials at Leicester City Council revealed that rental delinquencies are increasing. Council released a statement that 27 per cent of the tenants occupying council housing were in arrears. The figure is a marked increase over previous levels, signaling a disturbing trend that is threatening the entire system.

City officials are quick to defend the bedroom tax, stating that it is a necessary tool to repurpose housing for families that better fit the size of the residence. While that may be true, do the ends justify the means?

Council claims that the reason behind the arrears is an increase in living costs. Increases in utility costs and food are causing problems already. Transportation is also getting more expensive. Yet incomes are flat, failing to rise along with the increases in living expenses.

Critics are quick to point out that the hugely unpopular bedroom tax is causing an immediate budget shortfall for families that have lived in the same home for years. They are reluctant to move even though their family size and situation may have changed over the years.

How far behind are tenants?

Of Council’s 21,200 tenants, 5,800 are delinquent. Roughly 27 per cent are late on their rent.

However, the real problem is the number of seriously delinquent tenants. This class of tenant has increased by 36 per cent in just a year. Council identifies seriously delinquent tenants as those being at least seven weeks in arrears.

In the last four years, unpaid rent has more than doubled from £800,000 to £1.8m. It is a dangerous trend that is unlikely to be easily reversed given the state of the economy and the shaky employment situation. At issue are flat wages and zero hours contracts that result in unreliable and unpredictable income for workers.

These contributing factors have been in place for years, and they have increased rental delinquencies. The bedroom tax has been labelled as the straw that broke the camel’s back. Nearly one in ten Leicester tenants are affected by the bedroom tax.

While officials deny that the bedroom tax is to blame, the evidence points to a different conclusion. That conclusion is that while flat wages and rising costs have pushed families to the brink of being broke and some beyond that point, the bedroom tax is shoving financial problems into high gear.

Tenants who cannot afford bedroom tax need not suffer in silence, nor do they have to struggle to the point that they fall delinquent on their bills. Leicester City Council officials are quick to point out that discretionary grants are often approved to offset any hardship caused by the bedroom tax. They just have to request it to be considered for aid.