THE problem of deepening arrears isn’t one that’s unique to homeowners. A growing number of tenants are falling behind on their repayments as rents continue to rise.
The cost of renting a private home in Scotland has hit a record high and it’s likely to continue going up next year, driven by a combination of strong demand and the costs of legislation, such as the new tenancy deposit scheme. The average rent in Scotland reached an all-time high of £672 in the three months to the end of September, according to Citylets.
The number of people calling debt charities about rent arrears has soared of late – the Money Advice Trust has reported that tenants seeking advice on arrears accounted for half of the calls to its debtline in the first eight months of this year. As with mortgage arrears, however, there are measures that can be taken to stop your landlord from evicting you.
1. Face up to it
Burying your head in the sand is the worst thing you can do, so get advice before the problem gets worse. Your local Citizens Advice Bureau will be able to help you work out what to do, while Shelter Scotland’s free helpline (0808 800 4444) is another valuable source of advice for anyone worried about arrears.
2. Try to negotiate
Let your landlord know if you’re struggling to pay your rent rather than wait for them to find out. If they do write to you about your arrears, keep the correspondence as it could be useful at a later point. Some landlords will agree a repayment schedule for the short-term, rather than having to go through the hassle and potential costs of eviction and then finding a new tenant.
3. Prioritise
Put other debts on the backburner – even council tax and energy bills – if it means being able to pay your rent. Keeping a roof over your head should be your main objective.
4. Check you are getting what you are entitled to
Millions of pounds in state support goes unclaimed every year because people don’t realise they qualify it. The benefits search at www.turn2us.org.uk can help you work out if you’re receiving all the help you’re eligible for.
If you’re on housing benefit and it doesn’t cover all your rent, Shelter Scotland recommends asking for a discretionary payment to bridge the gap.
5. Review your finances
Put a budget together by working out exactly what money you have coming in and where it’s going. That way you can identify possible savings that can go towards getting your rent payments back in line. You may be paying over the odds for your household energy and be able to switch to a cheaper deal, for example.