Risk of homelessness to private tenants from Scottish housing associations' debt recovery practice

GHA's CEO, Martin Armstrong

Govan Law Centre (GLC) has raised concern over the growing practice of Scottish housing associations using 'arrestments in execution' against private sector tenants in relation to debts owed by their landlords to housing associations, generally in the association's capacity as a property factor.

GLC believes this policy will force private sector tenants to incur rent arrears, exposing them to eviction, the risk of homelessness and unnecessary detriment. Housing association officers typically refer to such arrestments as 'rent arrestments' and use them every month or four weeks, repeatedly, against individual 'innocent' private sector tenants.

GLC's Principal Solicitor has today written to Martin Armstrong, CEO of the Glasgow Housing Association (GHA) to express the law centre's concern that this policy is disproportionate, regressive, and ultimately puts innocent private sector tenants through unnecessary detriment, with the risk of homelessness. Other housing association landlords in Glasgow are using this practice against private tenants, and GLC believes the Scottish Government should intervene to examine the practice and consequences of this policy.

Lindsay Paterson, Solicitor with Govanhill Law Centre said: "We believe this policy causes unnecessary cyclical monthly detriment to innocent private sector tenants, and exposes them to unnecessary potential fines and emotional distress".

"It can be a frightening experience for our clients to have sheriff officers come to their door to serve such documents on a regular basis, and in our experience the service of schedules of arrestment is causing significant distress and inconvenience to ‘innocent’ private sector tenants".

"We hope the GHA and other social landlords will reconsider their policies here and stop using this form of diligence against 'innoncent' private sector tenants".

Risk of homelessness to private tenants from Scottish housing associations' debt recovery practice

GLC calls for widescale 'FOI' extension in Scotland

GLC has responded to the Scottish Government's consultation on 'Extending the coverage of the Freedom of Information (Scotland) Act 2002', which closed this week, by calling for the Act to be extended to cover the Glasgow Housing Association Ltd, and its factoring company, as well as asserting the general principle that the Act should be extended to a comprehensive range of private, third sector, and other bodies who are in receipt of substantial public funds, subject to 'proportionality criteria'.  GLC has argued that:

"As a matter of general principle, we believe there is a strong case for arguing that any body – whether private, third sector or public – should be subject to the 2002 Act in relation to the public money which they receive (and how it is spent) or public services which they provide subject to fair and reasonable proportionality criteria. Such proportionality criteria could be based around (a) the value of the contract or award and/or (b) the number of employees in the entity".

"We fully support proposals to extend coverage of the Act to GHA. We agree that GHA is a RSL unique in terms of size and public profile. In March 2003, Glasgow City Council transferred its housing stock to GHA with the result that GHA carries out functions which were previously carried out by the local authority. This means that people in Glasgow, who were formerly council tenants and are now tenants of GHA are unable to access information other tenants in other parts of Scotland would be able to access through Freedom of Information Act requests. Extending the coverage of the Act to include GHA will help address this inequity".

"We strongly believe that coverage of the Act should also include GHA’s factoring service, ‘Your Place’. As well as taking on responsibility for Glasgow City Council’s rented properties, GHA took over the council’s factoring responsibilities when the stock was transferred. GHA are now the factors of many ex-council properties. They are in a unique position as a factor in that they are the majority owner in many of the common closes they factor. This means that they often have to balance their role as owner and factor. We feel that it would be in the public interest to be able to obtain information regarding GHA’s factoring service through Freedom of Information requests".

GLC calls for widescale 'FOI' extension in Scotland

Time for change at GHA Ltd

Council-run housing in Glasgow was huge, bureaucratic and saddled with historic post-war debt, but it was democratic. Who would have suggested we take that huge public body and write of its £1bn debt, inject £900m of public subsidy, and create an equally massive, yet undemocratic, private company?

Fast forward six years from Glasgow's housing stock transfer and that is what has come to pass with the Glasgow Housing Association Ltd (GHA). It is essentially the council without the councillors.

Stock transfer was all about the creation of smaller, community controlled, housing associations. Associations which could respond to local need. Associations run by tenants for tenants.

The notion of 'community ownership' was the unique selling point of housing stock transfer. Tenants voted for it, and tenants are entitled to it. The only stumbling block is the Board of the GHA.

Govan Law Centre believes the GHA is a ship lost at sea. The failure of the GHA lies in its Board and its senior management team. They have the wrong vision, the wrong ethos, and are travelling in the wrong direction. They must be pushed overboard.

Scotland's Housing Minister can use his statutory powers to appoint a new Board and senior management team.

The GHA is bankrolled by the taxpayer. Taxpayer and tenants are entitled to demand that the GHA is transformed into genuine community-controlled housing associations across the City as a matter of urgency.

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Time for change at GHA Ltd