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End housing associations' use of Ground 8 when seeking possession for rent arrears, says Citizens Advice report

21-05-2008

A new report today from Citizens Advice reveals that while the Government’s rent arrears pre-action protocol appears to be bedding down well, some housing associations are continuing to choose to seek possession for rent arrears using the mandatory Ground 8 under the 1988 Housing Act. This prevents judges from using their discretionary powers to take into account any mitigating factors such as outstanding housing benefit problems.  It also prevents advisers from negotiating alternative solutions which might avoid outright possession, homelessness and unnecessary hardship for vulnerable people.  

Unfinished business indicates that the early impact of the rent arrears pre-action protocol, introduced in October 2006 to set out the steps landlords must take before resorting to court action, has been positive and Citizens Advice has found that most social landlords will only take possession action for rent arrears as a last resort.  

However, some housing associations do not follow the protocol and still seek possession for rent arrears using the mandatory Ground 8. As a result some CAB clients have been threatened with homelessness in circumstances where this might have been avoided if discretionary grounds had been used.  Citizens Advice does not believe that the use of Ground 8 by housing associations is consistent with the Government’s wider homelessness prevention agenda.

The report calls for the ending of housing associations’ right to use Ground 8 when seeking possession.  Whilst it remains however, Citizens Advice is urging the Housing Corporation to at least revise its guidance to discourage use of this Ground, and collect statistics on the nature and extent of its use.

Most housing associations do not use Ground 8, regarding its use as inconsistent with their wider social role and responsibilities. However among those that do, there is considerable variation in practice, with some using it in exceptional cases whilst others use it as a matter of routine. This results in inconsistency and unfairness for tenants who may face a greater risk of eviction simply because they rent from a housing association which uses Ground 8.

Based on its findings, Citizens Advice calls on the Government to give the pre-action protocol a higher visibility in court practice, and to end housing associations’ right to use Ground 8.      

Citizens Advice Chief Executive David Harker said:

"There really is unfinished business here. A minority of housing associations – and I stress it is a minority – are still using Ground 8 to recover rent arrears. This is unhelpful, inconsistent and often unfair. As our report Unfinished business shows, the time has come to discontinue the use of Ground 8 by housing associations and we are therefore pleased that the Department for Communities and Local Government has set up a stakeholder group to look at the problem.  We hope this will result in early action to end this practice."

Case studies

A CAB in East London reported a single parent who got into arrears when she first took up low paid and sporadic work after years of unemployment. She was poorly advised by Jobcentre Plus that benefits would stop when she started work and therefore she did not apply for housing benefit. The arrears resulted in the housing association obtaining possession under Ground 8. She faced eviction, was worried her child would be taken into care and was left very wary of trying to work again.

A CAB in Hampshire reported a couple in low paid work and with dependent children, who had been issued notice under Ground 8.  The client was unable to reduce her rent arrears to less than 8 weeks before the hearing because her working tax credit had been stopped due to a change in her circumstances.  In the meantime the family had an income of only £400 per month.  The bureau had tried to negotiate with the landlord to withdraw Ground 8 and rely on Grounds 10 and 11 instead, but had been unsuccessful. The clients were extremely concerned that their family would be made homeless.

  • Unfinished business: Housing associations’ compliance with the rent arrears pre-action protocol and use of Ground 8.

Additional notes to editors:

  1. Under the 1988 Housing Act landlords may seek possession under Ground 8 where there are at least two months’ rent arrears when notice is served and at the date of the court hearing.  This is a mandatory ground, meaning that the judge has no choice but to make the order.
  2. Therent arrears pre-action protocol introduced in October 2006, sets out the steps which social landlords should take prior to seekingpossession.The protocol provides the court with sanctions which can be used against any social landlord who unreasonably fails to comply with the terms of the protocol. In such circumstances the court may impose an order for costs and/or, in cases other than those brought on mandatory grounds, adjourn, strike out or dismiss claims.

Notes to editors on Citizens Advice

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