HOUSING PROVIDERS JOIN FORCES WITH RBS TO EXPLORE ALTERNATIVES TO DOORSTEP LENDING » Communities » 24dash.com

The National Housing Federation will today announce it has entered into a new partnership which will work towards giving low-income households better access to affordable financial services.

The National Housing Federation – the trade body representing 1,400 housing associations in England – will work with the The Royal Bank of Scotland Group (RBS) to explore the development of financial products for housing association tenants.

The partnership will develop the thinking which will ultimately lead to the delivery of loans, savings schemes and other financial products, with an emphasis on improving access for the most financially excluded households.

The inspiration for the RBS partnership is the Federation’s belief that the poorest households, including housing association tenants, are often unable to access mainstream financial services such as affordable credit.

David Orr, Chief Executive, National Housing Federation, said: “We know that many housing association tenants cannot access mainstream financial services and are driven to doorstep lenders charging exorbitant rates. You wouldn’t pay 177% interest on a loan, so why should they?

“We want to give tenants an alternative, and we hope that this exciting new partnership with RBS will help us to identify how best to do it. Ultimately the Federation aims to develop a portfolio of affordable banking and credit services that people on low incomes can access.

“This is a unique partnership and one which we hope will make a real difference to tenants’ quality of life.”

Stephen Moir, Community Investment Manager, The Royal Bank of Scotland Group, said:

“Financial exclusion is a genuine cost to many tenants across the UK, limiting people’s ambitions and opportunities. No one organisation can solve the problem on its own but by working in partnership with the National Housing Federation we hope that we can develop solutions which will improve the lives of the most financially excluded households.”

Housing associations are leading organisations in the fight against financial exclusion. Many are working with credit unions and community development finance institutions to offer affordable loans and savings schemes to their tenants – but provision is patchy. The RBS partnership will look at ways of filling the gaps where the only credit available to tenants is from high interest lenders. It will also explore means of helping tenants to manage their finances, save for the future and access banking services.

The Federation’s Pathway to Financial Inclusion campaign, in partnership with the fair finance pressure group Debt on our Doorstep, has called for an end to the exploitative practices of doorstep lenders and better access to the basic bank account.

The Federation will also announce it is setting up a new affordable contents insurance scheme for housing association tenants, My Home, to be delivered in partnership with leading insurance broker Jardine Lloyd Thompson.

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Press release issued: September 21 2006