Financial Inclusion

The NLA has taken a lead role in combating financial exclusion amongst tenants in the private-rented sector.

We recognise the importance of support and advice for those facing financial difficulties, especially when those difficulties can affect the sustainability of tenancies.

It is a myth that landlords see a high turnover of tenants in their properties as beneficial. A high turnover of tenancies generates significant costs for landlords: ‘voids’ (periods where properties are left empty between tenancies) and any transition costs between tenancies (or in the event of having to end a ‘bad’ tenancy), both mean that high tenancy turnovers are inefficient in generating rent. There is also no guarantee new tenants are going to be well-adjusted or dependable. The vast majority of professional landlords prefer longer, well-maintained tenancies as they make better business sense. The financial stability of a tenant is therefore of vital importance to all landlords.

The NLA is calling on all local authorities to employ Tenancy Support Officers for private-rented sector tenants. These officers can assist both landlords and tenants in advising on issue affecting a tenant’s financial situation before a tenancy reaches crisis point.

There are many organisations that provide financial advice and assistance to social landlords and tenants. We are keen to work with the Regional Financial Inclusion Champions and other organisations to ensure that the same advice and assistance are available to private sector landlords and tenants.