70% rise in social housing rent arrears

A new report shows that the amount owed by social housing tenants to local authorities has soared in the past five years.

The analysis by Access Paysuite highlights how social housing arrears have jumped by more than 70%, with councils owed £3.1m on average. This is up 71% from £1.8m in 2019.

While arrears have risen steadily over the past five years, the last 12 months have proved especially tough for social housing tenants, with the figures showing a 14% increase in arrears compared to March 2023.

On average, the value owed to local authorities in rent arrears has increased by 44% from £492 in 2019 to £710 this year.

Alex Common, Divisional Director, Product and Engineering, Access PaySuite, said:

“….the cost-of-living crisis has caused real difficulties for many people to meet their living costs, whether they rent their property from their local authority, a housing association or a private landlord.”

What should you do if you’re in rent arrears to your local authority?

Missing rent payments is serious and failing to address arrears can lead to legal action and potential eviction.

Speak to your local authority immediately

As soon as you realise you have a problem, speak to your local authority. Don't ignore letters or phone calls from them, as this will only make the situation worse.

When you contact your local authority, be honest about your financial situation and explain why you've fallen behind on rent. They may be willing to work with you to create a repayment plan or help you get financial support.

Agree on a Repayment Plan

If you're able to pay off your rent arrears over time, your local authority might agree to a repayment plan. This usually involves paying your regular rent plus an additional amount each month until the arrears are cleared.

When negotiating a repayment plan, be realistic about what you can afford. Don't agree to payments you can’t afford that could lead to more missed installments and increased arrears.

Get free debt help

If you're struggling to pay your rent because of financial difficulties, there are lots of different sources of help available:

• Housing benefit: You may be eligible for housing benefit to help cover your rent payments. Contact your local authority to check your eligibility and apply.
• Discretionary housing payments (DHP): If you receive housing benefit but still struggle to pay your rent, you can apply for a DHP from your local authority.
• Speak to us. We provide free debt advice and can find the best solution for you. We can also check to make sure you’re receiving all the benefits and support you’re entitled to.

Prioritise your rent payments

When you're in rent arrears, it’s important to prioritise your rent payments over other bills. Rent is a priority debt. This means not paying it can have serious consequences such as legal action and potential eviction.

Understand your rights

As a tenant, it's important to understand your rights when it comes to rent arrears and potential eviction. Your local authority must follow a legal process before they can evict you, which includes:

• Serving you with a notice seeking possession
• Obtaining a court order for possession
• Applying for a warrant of possession

Throughout this process, you have the right to challenge the eviction and present your case in court. Seek legal advice from a housing solicitor or a charity like Shelter to ensure you understand your rights and options.