Rent Arrears. What Next If You Can't Pay? StepChange

Rent arrears are priority debts. If you have rent arrears on a property you live in, it’s important to contact the landlord or letting agency quickly to offer a way to repay what you owe. If you don’t do this, you’re at risk of eviction.

If you’re looking to rent with arrears on a previous property, you might find it difficult for a landlord to rent to you. There’s also the possibility that court action will be taken against you to recover what you owe.

If you're struggling to rent a property, your landlord or letting agent may agree to you using a rent guarantor who would be responsible for paying any arrears.

Recent changes to eviction laws

A ban on evictions for private renters in England and Wales that's been in place since March was due to come to an end on 23 August but has now been extended by four weeks to 20 September 2020.

Landlords must submit evidence about how their tenants’ circumstances may have been affected by coronavirus if they want to evict. Landlords in Wales must currently give six months' notice of eviction.

In Scotland, the ban on evictions has provisionally been extended until March 2021.

If you're worries you may be at threat from eviction, contact Shelter or consider getting free debt advice.

Help with the financial impact of coronavirus

A number of measures are being rolled out to help people who are struggling financially because of coronavirus. These include payment holidays for some forms of credit, changes to overdraft charges, help for renters and the extension of the moratorium period for debts in Scotland.

The Scottish government has also launched a scheme to offer interest-free loans to private landlords whose tenants are having difficulty paying rent during the coronavirus crisis.

The DWP has suspended certain deductions from Universal Credit (UC). If you have a suspended possession order (SPO) and normally have rent arrears deducted from your UC, you will need to make your rent arrears payment directly. If you’re unable to do this for any reason, contact us immediately, as not paying may lead to your breaching your SPO, and put you at risk of eviction.

Read our guides:

How are creditors helping? Learn if you can reduce or pause payments
Has your income reduced? Get tips on managing finances if you've had a pay cut
Need emergency help? Find out where to get money for food or rent

Need help with rent arrears?

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What happens if you have rent arrears?

If you don’t deal with your arrears, your landlord or letting agency could take steps to evict you, but you do have the chance to avoid this happening.

If you haven’t contacted your landlord about your arrears you need to do this straight away. Contact them with a plan to repay what you owe. They’re not obliged to agree, but many will accept a reasonable offer. It can help to explain that you’re dealing with your money problems or give a reason why you’re not being able to pay the full amount immediately.

Because of the risk of eviction, rent arrears for a property you’re living in are always treated as priority payments.

How do you deal with rent arrears?

Look at your budget and work out how much you can afford to pay
Contact your landlord and tell them you’d like to make a new payment arrangement. Send them a copy of your budget to show you’re offering to pay the most you can manage
If agreed, keep to this new payment arrangement

If you’re struggling to put together a budget or you’re worried you can’t afford to make repayments, get in touch with us for free and impartial debt advice.

If your landlord refuses your offer of payment to the arrears, or if they don’t reply, it’s very important you make the payments anyway.

Use our sample letters to contact your creditors if you can’t afford to pay what you owe.

What happens if I can’t pay my rent arrears?

Your landlord can take steps to evict you.

Your rights as a tenant are complex and depend on where in the UK you live and the type of tenancy you have. If you’re worried about being evicted we strongly recommend you contact Shelter, or Housing Rights if you live in Northern Ireland.

Specialist help contact details

Housing advice can be complex, so we recommend contacting an advice agency that specialises in this subject.

In England or Scotland, contact Shelter or Shelter Scotland. They have a telephone helpline (0808 800 4444) and a website packed with useful information.
In Wales, contact Shelter Cymru on 0345 075 5005.
In Northern Ireland, Housing Rights or call them on 028 9024 5640

Contact your local authority if you're at risk of homelessness because of eviction. Their housing department will be able to advise you about applying for social housing or emergency accommodation.

Can you get a CCJ for rent arrears?

Yes, but this doesn’t happen as often as for other types of debt.

If you do get a claim letter for a County Court judgment (CCJ), you have the opportunity to pay it off, or make a payment arrangement to avoid it being recorded on your credit history.

Read our guide to dealing with County Court judgments.

Can the council help with rent arrears?

The council’s housing department can advise you about applying for social housing or emergency accommodation, and help you deal with the risk of homelessness.

Find contact details for your local authority.

What should I do if housing benefit delays mean I can't pay my rent?

Your local council should process your housing benefit claim within 14 days. Contact the housing benefit department if you don’t get your payment. It helps to keep a copy of your original claim, to help them locate your record. If you claimed online you should have had an email receipt.

Make sure your landlord is aware and ask them to agree to a temporary payment arrangement.

I’m on Universal Credit and can’t pay my rent – what can I do?

Whether your Universal Credit payments have been delayed or you’re struggling to make all your essential payments, you should contact the Universal Credit helpline. They can advise on:

Changing how they make payments to you
Paying you an advance
Paying your rent directly to the landlord

Universal Credit helpline (free calls)

Telephone: 0800 328 5644
Textphone: 0800 328 1344
Telephone (Welsh language): 0800 012 1888

How do I deal with arrears for a previous property?

You should treat rent arrears from a previous property the same as you should do with other non-priority unsecured debts, unless the landlord has taken court action to recover the money you owe them.

Find out more about which debts to pay first.

However, these arrears may be shown on your credit file and may affect your ability to take out more credit. As your credit file is checked when you apply for a tenancy, you may find that landlords will refuse to rent to you while you have unpaid rent arrears.

Some local authorities won’t allow you to apply for council housing if you have rent arrears for a council house you’ve previously lived at. This means you may need to clear the arrears quickly if you want to get rehoused with them.

If you’re able to pay off the arrears, either by negotiating a payment arrangement or as part of a debt management plan, your payments will be noted on your credit file. This shows that you’re dealing with your debt problems.

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How we help

I can’t pay my rent, how can you help me?

If you need help with your rent arrears or to work out how much you can afford to pay towards them, we’re here. Use our online debt advice tool to put together a budget. You’ll then get a personal action plan, tailored to your situation, with practical advice on dealing with your debts.

Or, if you'd prefer, you can call us and talk to one of our advisors (free from all landlines and mobiles).

Need advice on rent arrears?

Rent arrears. Get help if you can’t pay your rent