3 practical steps to reduce rent arrears

As there has been an increase in Eviction Notices linked to rent arrears by 26%
and 146% increase in calls to the charities dealing with rent arrears we have complied a quick list of essential steps to take.

If you are having issues with rent arrears you should speak with your landlord and explain what you are doing and if possible agree a temporary repayment plan while you take the steps below. If your landlord is a Local Authority or a Housing Trust they will have support staff and funds that can help you.

Step 1: Check you are in arrears

Humans are not perfect, sometime not all payments are accounted for on your rent account or there is an error in the sums. Your firs step should be to ask for your rent statement and compare it to your rent receipts and Housing Benefit payment records. We have found that sometimes doing this exercise reveals that the arrears are lower than you imagine.

Step 2: Maximise your income

If you are in arrears due to financial difficulty your next step should be to maximise your income.Firstly ensure you are getting all the benefits your entitled to.

If you are getting all you can, our recommendation then would be to minimise your extra payments going out, like your sky, mobile, telephone bills etc. Use a budget sheet to see where your income is going and strip out any non-essentials. Remember it does not hurt calling your providers and saying you are having problems and see if they can help with a special offer or lower tariff.

If you have an “overpayment” from a benefit get a benefit advisor (CAB or solicitor) to have a look at the decision and amounts. It may be possible to appeal the decision or if too late to appeal the Local authority and DWP can write off some of the debt. They also have the option to reduce your overpayment recovery rate. They generally need you to put it in writing and they can reduce the recovery rate to a minimum amount, this possibly saving you another £5-£15 a week.

Step 3: Rent Arrears Funding / Clearing Help

If you have maximised your income and reduced your outgoings and are still getting a shortfall or have a large amount to pay back, the next step would be to apply for Discretionary Housing Payment from your Local Authority for an increase of Housing Benefit payments and / or towards any rent arrears you already have. The latest stats show that Local Authority’s still have significant reserves remaining.

You should also speak with your Local Authority Homeless Persons unit. Their “homeless prevention fund” may be able to help with the arrears and they can help you find cheaper accommodation. Remember if a property becomes unaffordable due to Housing Benefit reduction or otherwise you are unlikely to be found intentionally homeless as long as you have liaised with you landlord, reduced outgoings and maximised income (ex parte Fahia / Ex parte Tinn) though do seek professional advice as each situation is different.

If despite (or lack of assistance) from DHP an HPU you still have arrears you can apply for a grant from the following which can be used towards your arrears.

• British Gas Energy Trust 
• EDF Energy Trust
• Veolia Water Trust
• npower Energy Trust

You can of course ask friends and family for a short term loan to help you pay towards your arrears.

Check if your deposit is protected, if not this can result in a claim which can reduce your rent arrears. If you have disrepair in the property also seek legal advice on this as this again can be used to of-set against any arrears.

Remember your rent is a “priority debt” and should be paid first. If after paying rent you are in difficulties speak with your Local Job Centre to see if a short term benefit advance would help, however remember if you do this your subsequent benefit payment would not be any earlier so the gap between the two payments will be greater than normal and you will have to manage your money effectively.

If you have been on benefits (income based) for more than 26 weeks look in to Budgeting Loan, to help you with:

• a cooker, fridge and washing machine;
• furniture such as a beds or a sofa;
• the costs of moving into a new home;

However remember this will have to be paid back in due course.

If you have not been on benefits that long or require urgent assistance, look into your Local Welfare Support fund to see if they can help you with expenses or items and also speak with your local charities and food banks, to see if they are able to assist with basic needs.

 Notice / Possession Proceedings

If you get a notice of possession or proceeding paperwork we advice to go see a local Legal Aid solicitor or CAB as soon as possible for assistance.

If you have any further tips let us know below.