A report by the University of Salford suggests that if housing associations reduced the amount of unpaid rent owed by a tenant they are less likely to rely on non-mainstream forms of credit.
This actually helps landlords because it means tenants are less likely to fall deeper into unmanageable debt. In fact, some housing associations are helping householders to access cheap loan schemes and other financial services.
National Housing Federation chief David Orr said: “Housing associations can cut rent arrears, avoid evictions, reduce tenant turnover and save money on management and legal costs by adopting financial inclusion strategies as this report shows.”
The report found that in north Devon, rent arrears fell from 5.7 per cent to 1.9 per cent in just over a year because decent financial services were made available.
It is estimated that there are around three million people in the UK who do not have access to mainstream and affordable loan products.