Almost half of all council tenants in Levenmouth are in arrears with their rents, it has emerged.
The situation has been described as a ticking time bomb which could explode once the reality of welfare reform hits home. A Fife Council report has revealed that at the end of March, 32% of Levenmouth’s tenants had rent arrears.
This equates to 1,374 households having difficulty with rent payments 19% of which had debts of more than £500.
However, matters have actually deteriorated since then and 43% or 4,248 households are now behind with payments.
Levenmouth is one of Fife’s most deprived areas, with 38% of children in Buckhaven, Methil and the Wemyss Villages living in poverty.
The latest figures are said to be of huge concern to councillors, who have put aside their political differences to tackle the issue.
The report by head of housing Derek Muir will be discussed by members of Levenmouth Area Committee.
Mr Muir said the total outstanding rent arrears for the area at the end of 2012/13 was £488,155, an increase of £20,000 on the previous year. Just two months on, the figure has risen to £527,000 still unpaid.
“The increase has been managed over the last year during a period of financial uncertainty for customers at a level which highlights the work being carried out within the area team to maintain and reduce the outstanding rent arrears due to Fife Council,” said Mr Muir.
Leven councillor Alistair Hunter said the figures painted a very bleak picture.
“Some of the welfare reforms we’ve seen are really only starting to kick in now and universal credit won’t come in until October,” he said.
“It’s generally acknowledged the worst of this is still to come. It’s a hellish situation and we need to do all we can to help.
“It’s a ticking time bomb and there’s no easy solution.”
Fife Council has established two teams based in Glenrothes to pursue debt.
One deals with arrears less than £250 and contacts tenants as early as possible to ensure payment, while the other deals with people who have not responded and where court action against them has begun.
At the end of March, there were 55 tenants in the latter category due £127,238 between them.
Mr Muir said: “Year 2013/14 will continue to see appropriate methods of debt recovery being employed by all staff across the housing service, however major changes in welfare reform may have a negative effect on the amount of rent due to Fife Council.”
Mr Hunter added that the fear among councillors was many people would bury their heads in the sand.
“If you have a certain level of debt, do you just forget about it altogether and stop paying your rent as well. The latest figures are showing 44% of tenants are in rent arrears across Levenmouth.
“From my own perspective there’s no hint of politics because everybody is agreed this is a hellish situation and we need to do all we can to help.”
On a more positive note, the homeless demand in Levenmouth is reducing as applicants are being housed quickly and regularly by staff.
However, this means the council has reduced the number of transfers being offered to tenants looking to move house.
Mr Muir said allocations to transfer list applicants were expected to rise this year as the impact of welfare reform could see many people wishing to downsize o smaller properties, thus creating a chain of available moves for those on the waiting list.