The English Housing Survey 2021-2022 found that 26% of private renters reported that they found their rent either fairly or very difficult to afford. Therefore, it can certainly be easy to fall behind on rent payments, but what are the consequences if we do?
Credit History
The first thing to note is that missed rental payments can leave a negative mark on your credit history which may lead to you being refused credit in the future, such as being declined a mortgage application to help you buy a home.
For more information about the world of credit and some ways in which you can improve your credit score, click here.
Rent Arrears: Negotiating with your Landlord
If you fall behind on rent payments, you are in ‘rent arrears.’ If you’re in rent arrears, it’s best to try to tackle the problem as soon as possible; letting the issue build up will only worsen your situation.
If possible, you may want to try to come to an agreement with your landlord. You could:
- Explain why you fell behind on rent, e.g, you had lost your job
- Explain how you can now pay what you owe, e.g, you have found a new job, or you are now claiming benefits
- Draw up a repayment plan to repay what you owe over a certain length of time
Whilst worth trying, you must remember that your landlord is not obliged to agree to this, and they may well continue to proceed with eviction.
Pay what You Can
Even if you cannot repay the full amount of your arrears, and your landlord has not agreed to a repayment plan, you should still try to pay off as much as you can afford. If your landlord takes legal action against you, or if you seek housing help from the council, it will help your case as it shows you are doing everything in your power to pay what you owe.
If your landlord is evicting you and they refuse to accept rent payments after giving you a written notice, you should still put that money aside as rent money. You are legally required to pay rent during the notice period and once the notice period runs out until you’re actually evicted. If your landlord won’t take it, you still shouldn’t spend it. Instead, put this rent money in a separate account so that you can use it as evidence if your case goes to court in order to show you’re prepared to pay off the arrears.
Eviction
If you’re in rent arrears, your landlord can evict you with a minimum of 2 weeks’ notice. If you refuse to leave after this time passes, they can then apply to the court to evict you, at which point you will receive court papers.
At court, your landlord can ask for a possession order from the judge. If you still haven’t left by the date on the order, the landlord can then ask for a warrant of possession, at which point you will be sent a notice of eviction by the bailiffs.