When I look at today’s social housing sector, one thing stands out – we’re at a turning point. Access PaySuite’s latest 2025 Rental Arrears Index shows that 40 per cent of social homes are now in arrears. That translates to £655 million of potential uncollected rents, and that could rise by up to £240 million if just five per cent of the government’s £4.8 billion welfare cuts translate into unpaid rent.
This is about more than just numbers and statistics. It’s households under pressure, communities under strain and housing providers facing mounting operational and financial pressures.
This reality is lighting a fire under the need for real change in the way housing providers interact with their tenants and manage arrears within their portfolio. Too often, the sector operates reactively, chasing arrears once they happen, sending reminders and escalating enforcement. This approach doesn’t really work for either tenants or housing staff, creating tensions and inefficiencies across the board.
Where policy meets practice – Leveraging government investment
The government’s long-term housing agenda presents an opportunity to strengthen financial resilience and expand affordable housing stock.
The £39 billion Social & Affordable Homes Programme (2026-2036), along with the extended Affordable Homes Guarantee Scheme (AHGS), gives registered providers access to guaranteed loans for building new affordable housing, with support extended to 2028/29 for completions.
These initiatives have the potential to dramatically improve housing quality and supply across England, yet without modern, resilient payment infrastructures, these investments risk being undermined. Even as new homes are delivered, tenants facing increasingly tighter household budgets, compounded by the freezes on taxes and National Insurance thresholds, may struggle to pay their rent.
This is where technology plays a critical enabling role. Streamlined payment processes, combined with predictive analytics, can help bridge this gap between policy ambition and day-to-day reality. With tenants receiving timely, practical support and housing providers maintaining stable and predictable cashflows, the technology offers tangible outcomes: fewer arrears, more resilient households and stronger financial performance for providers.
Smarter, data-driven financial support
The future of housing payments lies in technology that empowers all parties.
Innovative platforms, such as Access PaySuite’s Income Management Evo, are designed to move housing providers away from reactive debt collection towards proactive financial support.
Designed specifically for housing providers, local authorities and public-sector organisations, solutions such as Income Management Evo transform payment processing, reconciliation, exception handling, refunds and reporting wherever tenants engage, whether online, in person or over the phone.
By harnessing AI-driven analytics, these systems can identify those tenants at risk of falling behind before arrears happen, allowing interventions to be tailored towards an individual’s specific needs and circumstances.
Here, AI doesn’t just flag potential problems, it can also recommend the most effective course of action. For example, if a tenant consistently struggles in certain months due to seasonal employment patterns, AI can recognise these data patterns and automatically suggest payment plans, offer alternative payment methods or send personalised reminders through the tenant’s preferred channel.
Timely, discreet and, most importantly, human-centric, these AI-powered interventions ensure tenants feel supported rather than pursued.
Beyond identifying at-risk tenants, these AI-driven systems streamline the way housing teams manage payments and exceptions. Payments can be reconciled automatically, anomalies highlighted in real time and approvals for refunds or adjustments handled quickly and securely. What would previously take hours of manual output and input can be completed in a matter of minutes. In fact, participants of early adoption programs have reported clearing just under 90 exceptions in seconds.
The administrative burden these quick fixes and AI-powered automations alleviate allow housing staff to focus on meaningful engagement with tenants rather than time-consuming back-office tasks.
At the same time, a range of flexible payment options, from Direct Debit and Open Banking to digital wallets and real-time payments, makes it simpler for tenants to stay on track. Combined with personalised alerts and targeted communications, these tools enable housing providers to intervene proactively, offering support before arrears accumulate.
By connecting automation, analysis and multi-channel payment capabilities, housing providers can safeguard their income streams while fostering a more supportive, tenant-focused approach to financial wellbeing.
Building a sustainable, tenant-centric future
The challenges outlined in our 2025 Rental Arrears Index are formidable but they also highlight the potential for systemic change. Traditional reactive arrears management is inefficient, expensive and often counterproductive.
Smarter arrears management benefits the entire housing ecosystem. Housing staff can operate more efficiently because interventions are data-driven, tenants feel supported rather than penalised and rental income is protected. Crucially, this approach replaces friction with trust, and short-term firefighting with long-term resilience.
As household finances remain under pressure, driven by real-term income stagnation and welfare reform, the role of housing providers is evolving. They are no longer just landlords; they’re anchors of financial stability within their communities.
Technology alone isn’t the answer but it is a powerful enabler. When used thoughtfully, it allows housing providers to move earlier, act smarter and engage in more personalised ways. It creates the space for meaningful conversations, targeted support and preventative action, all of which are essential if arrears are to be reduced sustainably rather than simply managed.
By shifting the focus from arrears recovery to financial resilience, our sector can deliver lasting stability for tenants, housing providers and communities alike. Only then can the sector fully support the government’s long-term housing ambitions.
Alex Common is the divisional director of product and engineering at Access PaySuite, part of the Access Group.
