Homelessness prevention by Newcastle Furniture Service

Flexible furnished tenancy rental

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The context

Tenancy sustainment isn’t easy to measure. Data at national level in Scotland only records social housing retention in the first year. Not all tenancies end for negative reasons, or lead to homelessness. Behind long tenancy statistics we may find some households desperate, but unable, to move. Yet when exploring why some tenancies do fail, especially in relation to the most common reason for repossession (abandonment), the challenge of making a house into a home frequently arises in research, with some direct links made between unfurnished tenancies and an increased risk of failure.

Turn2Us reports that two million UK households lack essential household appliances. This has a financial impact: it costs more to do without white goods, can increase household debt and/or encourage use of high purchase or rent-to-own schemes. Living without essentials also negatively impacts well-being, self-esteem, health and in some cases, safety. NFS was set up as a direct intervention to increase sustainment for social tenants on low incomes.

The intervention

NFS, part of the 27,000 home Arm’s Length Management Organisation, Your Homes Newcastle (YHN), began in 1989 when the landlord identified many young people’s tenancies were quickly breaking down. Voids staff often found mattresses on the floor and take-away boxes, suggesting tenants had moved in, but not managed to make the house a home and abandoned it. A pilot furniture rental option was launched, then quickly expanded. NFS now rents furniture to 5,300 YHN tenants and 4,000 social tenants of other providers across 38 social
landlords in England and Wales.

New or existing YHN tenants can opt into furniture rental, with flexibility on which items are needed. NFS offers a range of packs, including all white goods, larger furniture and starter packs financed through a Housing Benefit (HB)/ Universal Credit (UC) eligible service charge. NFS delivers, installs and repairs all items for no extra cost. A furnished tenancy is a temporary solution for some, a long-term one for others. Tenants can hand back items at any time, for example, if they buy their own furniture or enter work and lose HB/UC eligibility. In practice, around 20% of NFS customers don’t get HB/UC, but stay with the service, with flexibility on rental charges offered for those in difficulty.

NFS replaces white goods every four years, unless the tenant does not want this. If they move to another YHN property they can take their items with them. Used items are cleaned, repaired and recycled where possible. They may be offered to social fund recipients or donated to tenants who cannot use NFS for some reason. This furniture rental model is replicated across NFS’s 38 clients.

The outcome

Housing Associations’ Charitable Trust (HACT) analysed NFS’s impact in 2020, surveying tenants and housing management data.ix They found tenants using NFS had average lower monthly arrears, compared to a control group. Tenants using NFS overwhelmingly reported a positive impact on their finances and their wellbeing. The option was seen as flexible, quick and good value for money, compared to alternatives, with savings on repairs and replacements especially appreciated. Social landlords using NFS perceived a link between flexible furniture rental and increased tenancy sustainment.

Key insights

• choice and flexibility are key to a good furnished tenancy offer, enabling new and existing tenants to access what they need when they need it, with the option to return items any time. Such flexibility responds to diverse needs and avoids locking people into a service charge ‘poverty trap’
• the ability to access affordable, new items (especially white goods) is valued by some tenants who may otherwise resort to high-cost purchase schemes, rather than use second-hand furniture
• whilst data shows certain households are more likely to use NFS (i.e. single men over 35; young female lone parents), offering the option to all tenants creates a universal safety net

Find out more…

Andrew Waters, Commercial Development Manager, Your Homes Newcastle
andrew.waters@yhn.org.uk