RSLs fear Rover workers ‘may end up homeless’

Closure of the MG Rover car plant in Birmingham could push up homelessness in the region, housing experts fear.

Social landlords in the West Midlands are preparing to offer debt counselling to tenants who will lose their incomes if the car giant’s Longbridge factory closes.

Councils and housing associations are anxious for tenants to prioritise their debts to ensure they can pay rent and mortgages and keep their homes.

As Housing Today went to press, the future was looking bleak for Longbridge’s 6000 employees – as well as nearly 20,000 workers at MG Rover suppliers elsewhere in the UK – after the chances of a rescue bid from China’s Shanghai Automotive Industry Corporation were described as “one in a million” by the Transport & General Workers Union.

Bromsgrove District Housing Trust said about 600 of its residents were employed by MG Rover or its suppliers.

Mike Brown, chief executive of Bromsgrove, said the closure of Longbridge could lead to a rise in homelessness in the area.

He said: “In the short to medium term, it could have a negative impact on homelessness. It will increase our problems as we take all homeless referrals from Bromsgrove council.”

Brown added that the trust’s rent arrears could also rise.

“We need to get to people and make sure they pay the right debts first. [The closure] could have an adverse affect on rent collection figures and on the ongoing viability of our business.”

It’s frightening for tenants and staff, many of whom live with partners who work at MG Rover

Pat Brandum, West Mercia

Pat Brandum, chief executive of West Mercia Housing Group, which manages 5000 homes, said the group had a “high proportion” of properties near Longbridge.

She said: “It’s frightening for our tenants and our staff, many of whom live with partners who work in the MG Rover plant. We can provide debt counselling but the important thing is we put employment back in the city.”

Some of MG Rover’s suppliers are located within Birmingham’s housing market renewal pathfinder, but the car firm itself is not in the pathfinder area.

Rod Griffin, director of development at the pathfinder, said: “Once we have understood how this will impact on the supply chain, we will work with Birmingham council and our partners to see how we can help.”

But it has been suggested that if MG Rover does collapse, the Longbridge site could be used for off-site manufacture of houses, which would provide new jobs.

Sarah Webb, policy director of the Chartered Institute of Housing, said: “I wonder if anyone has thought about using Longbridge for off-site manufacturing? There’s a desperate shortage of construction capacity and Longbridge is filled with skilled workers.”

If the Department of Trade and Industry got together with the ODPM, they could bring this issue together with John Prescott’s ‘step change’ in supply of housing.”