Support tenants with affordable credit

Housing Associations are more than landlords. For a long time, Housing Associations have recognised the importance of financial inclusion. Most have introduced strategies or dedicated staff to help tenants access affordable credit, manage money, and reduce the risk of arrears. While the level of support varies across the sector, these initiatives can make a real difference, helping tenants avoid cycles of debt and supporting tenancy sustainability.

High-cost credit and tenant vulnerability

The reality facing social tenants is stark:

• 42% of social renters live in poverty after housing costs
• 80% of social tenants have no savings to cushion unexpected expenses
• Nearly half of loan shark victims live in social housing, making them particularly vulnerable to predatory lending

For Housing Associations, the consequences of this vulnerability are direct and costly.

Rent arrears among housing association tenants reached £819 million in 2023.

Research from Shelter Scotland estimates that each eviction from social housing costs nearly £24,000 once legal, rehousing, and support costs are factored in. While this figure is based on the Scottish system, similar pressures exist across England and Wales where temporary accommodation and homelessness prevention services also drive up the true cost of arrears-related evictions.

Reliance on high-cost credit pushes tenants closer to arrears and eviction, with devastating consequences for tenants and heavy costs for housing associations.

The benefits of credit union referrals

Credit unions offer tenants an accessible route to fair finance:

• Affordable loans: typically at far lower APRs than high-cost credit.
• ‘Save as You Borrow’ savings accounts: encouraging long-term financial resilience.
• Higher approval rates: compared with mainstream lenders, especially for those on lower incomes.
• Responsible lending: Credit unions are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

For tenants, this means safer borrowing and a chance to build financial resilience.

For housing associations, it reduces arrears, lowers eviction risk, and strengthens tenancy sustainability.

Why NestEgg?

While many Housing Associations already recognise the value of referring tenants to credit unions, the reality can be complex.

Some Housing Associations cover multiple regions, each with their own local credit union. Others may not have strong relationships with local financial partners.

NestEgg’s Platform solves this challenge by:

• Streamlining referrals: one platform which can connect tenants to affordable credit wherever they live
• Providing tenant choice: tenants are matched with the most suitable credit union for their circumstances.
• Offering impact measurement: NestEgg’s analytics can demonstrate reductions in arrears and improved tenant wellbeing

Why it matters

Partnerships between Housing Associations and credit unions go beyond helping individual tenants. They build stronger communities by reducing reliance on high-cost lenders, cutting arrears, and sustaining tenancies.

For Housing Associations, that means fewer evictions, lower costs, and better outcomes for both residents and staff.

By embedding affordable credit into financial inclusion strategies, Housing Associations can protect tenants, safeguard rental income, and demonstrate leadership in tackling poverty.

NestEgg’s Platform makes this simple, scalable, and measurable, whatever the size or footprint of your organisation.

Ready to cut arrears and strengthen your tenants’ financial resilience?

Book a demo to see how our Platform can support your strategy.