Struggling to pay your rent? Here’s what you need to know

​Thomas Pertaia, Legal Adviser, DAS Law, explains your rights if you can’t pay your rent.

5th July 2021
I’m struggling to pay my rent and my landlord has threatened to evict me.  What is the current legal position on evictions during the pandemic?

Prior to issuing legal proceedings for eviction, particularly where rent arrears are concerned, your landlord does have a protocol that they should follow. This will include evidencing that they have taken steps to understand your financial position and work with you to try and resolve the rent arrears. This may include agreeing on a payment plan.

However, the restrictions previously placed on evictions have been lifted as of 1 June 2021 in England and 1 July 2021 in Wales, meaning that bailiffs can now be appointed to enforce a possession orders. As of 4 May 2021 government introduced the Debt Respite Scheme (Breathing Space) which may be used to temporarily delay any possession claims based on rent arears. More information on the scheme is available on GOV.UK.

However, as of 1 June 2021 the restrictions previously placed on evictions in England have been lifted, meaning that bailiffs can now be appointed to enforce a possession orders. The restrictions previously imposed still remain in force in Wales until 30 June.

As of 4 May 2021 government introduced the Debt Respite Scheme (Breathing Space) which may be used to temporarily delay any possession claims based on rent arears. More information on the scheme is available on Gov.uk.

The Coronavirus Act 2020 also imposed a longer notice period for eviction notices served on tenants by the landlords seeking possession (namely Section 8 and Section 21 notices).

How much notice does the landlord have to give me?

This largely depends on the type of notice you are being served with and the reasons behind the service of the notice.

Section 21

Notices served on or after 1 June 2021 will need to be a minimum of 4 months.

Section 8

Notices served on or after 29 August 2020 will need to be six months in most part, save for limited circumstances e.g.

  • Notices served on or after 1 June 2021 will need to be 4 months in most part, save for limited circumstances e.g.
    • If 4 months or more rent is owed the notice could be 4 weeks;
    • Serious anti-social behaviour attracts 4 weeks’ notice;
    • Nuisance and immoral use of property could allow possession proceedings without notice;
  • Full list of grounds and period of notice required is available on GOV.UK.

The updated provisions put in place as of 1 June are in place until the end of September. The plan is to return to pre-pandemic notice periods from 1 October 2021, this is subject to government’s review of the situation.

From 1 August the notice period for rent areas will be further reduced and 2 months’ notice will be required where less than 4 months’ is owed.

Wales

As of 29 September 2020 any section 21 notice will need to be at least 6 months. In most parts section 8 is also 6 months save for very limited circumstances such as serious anti-social behaviour which requires 4 weeks’ notice. The full list of grounds and the period of notice required is available on Gov.uk.

The updated provisions put in place as of 29 September are in place until 30 September 2021. What will follow after that date is not yet clear.

If you do have any concerns around the enforcement of a possession order, we urge you to seek legal advice.

Can I challenge an eviction notice under the current legal guidelines?

This will largely depend on the eviction notice you have been given and whether your landlord has followed the correct procedure in issuing the notice. If they are relying on a Section 21 notice, a landlord doesn’t need to rely on a particular reason for trying to get possession. Therefore, these will be difficult to challenge.

However, there are strict requirements that the landlord needs to comply with when issuing such a notice, and if these are not met, you may be able to challenge that the notice isn’t valid.

If a landlord has issued you with a Section 8 notice you may have more of a chance of challenging it as the landlord will be relying on a certain reason to seek eviction. There are certain grounds in which it will be mandatory for the court to award possession under a Section 8 notice if satisfied – e.g. if you owe two months’ rent or more.

Nevertheless, there are some grounds where it is at the discretion of the court – e.g. if the landlord is complaining about the condition of the premises. The key point is that if you are looking to challenge an eviction notice, you should seek legal advice.

If you are struggling with debt and this is the reason for you being served notice then you may be able to take advantage of the new Debt Respite Scheme (Breathing Space) which started on 4 May 2021. This will potentially give you more time and can temporarily stop things like interest accruing and could prevent the landlord from serving you with a section 8 notice or starting possession proceedings against you, but does not prevent the debt from continuing to build if you are not paying the rent. If you are considering using the debt respite scheme, then you should take legal advice.

I’ve been out of work/on furlough/on significantly less salary, how can I negotiate with my landlord?

As discussed above, your landlord does have a protocol that they should follow prior to serving an eviction notice or issuing proceedings. This will include evidencing that they have taken steps to understand your financial position and work with you to try and resolve the rent arrears. This may include agreeing on a payment plan.

If you cannot afford to pay your rent due to the Covid-19 outbreak, you should contact your landlord as soon as possible to try to negotiate a payment plan based on your financial position at the time. This could include a temporary rent reduction or a rent holiday. It may also be wise to inform your landlord of the steps that you are taking to address the issue.

Legally, you are still liable to pay the full amount of your rent. It is likely that the landlord will try to recover the shortfall by spreading the cost over future payments, unless an alternative agreement is reached. You should ensure that any agreement between you and your landlord is documented.

How do I know if I’m entitled to housing benefits?

Housing benefits are now being replaced by universal credit so most people will need to claim universal credit instead. You may be eligible for universal credit if:

  • You’re 18 or over (there are some exceptions if you are 16 or 17);
  • You’re on a low income or out of work;
  • You’re under state pension age (or your partner is);
  • You and your partner have £16,000 or less in savings between you;
  • You live in the UK.

You cannot claim universal credit if you received severe disability premium or are entitled to it. Further information with regard to the eligibility criteria for such benefits can be found here.

The government offers online ‘benefit calculators’ that will tell you what benefits you are entitled to, how to claim, and how your benefits may be affected if you start work. These calculators are free and anonymous: https://www.gov.uk/benefits-calculators

Local authorities are also providing support during the covid-19 outbreak for those who are on a low income or unemployed in the form of council tax reductions. Those who already receive a council tax reduction will automatically receive a new bill from the council. Those who do not usually receive a council tax reduction should contact their local authority to see if they would be eligible for a reduction.

Can my landlord increase the rent?

Depending on the tenancy agreement, your landlord may be able to increase the rent but any proposal to increase rent must be fair and realistic and landlords are required to follow a set procedure.

If you have a periodic tenancy that rolls on a week by week or month by month basis, your landlord cannot increase the rent more than once in any 12 month period without your agreement. If you have a fixed term tenancy, your landlord can only increase the rent if you agree.

A tenancy agreement will usually set out the process your landlord must follow to increase the rent. If your tenancy agreement is silent with regard to a rent increase then your landlord can attempt to renew your tenancy at the end of the fixed term with an increased rent, or agree a rent increase with you and keep a written record of this agreement that you both sign.

Additionally, if there is no rent review clause in your tenancy, your landlord is able to use a Section 13 notice to increase the rent. This rent increase can only come into effect once the fixed term has ended and has become a periodic tenancy, but the notice itself can be served during the fixed term. If you pay rent weekly or monthly, your landlord should give you one month’s notice. If you have a yearly tenancy, your landlord should give you six months’ notice.

You are able to challenge a Section 13 notice given to you by your landlord if you feel that the increase is unreasonable. If you are unable to resolve this with your landlord then this dispute can be escalated to the First Tier tribunal. Any application to challenge the rent increase must be received by the tribunal prior to the expiry of the Section 13 notice. We would strongly advise that you seek legal advice before proceeding with any legal claim to discuss the options available to you.

Can I still move home during lockdown?

If you cannot find a new home due to the lockdown restrictions, you may wish to contact your landlord to inform them you are unable to move and to negotiate a tenancy extension. If your fixed term tenancy is due to expire, this will automatically continue as a periodic, monthly rolling tenancy.

Landlords and tenants need to work together and offer flexibility at such a time.

In England and Wales, you are able to move home providing that you can take appropriate measures to stay safe and comply with social distancing. During any move you should ensure that you are complying with public health guidance.

As well as following public health guidance, you should consider whether any adjustments can be put in place to make the viewing process safer, such as:

  • Virtual viewings;
  • Ensuring the property is unoccupied during a viewing;
  • ‘Touch free’ viewings

If the move is not essential then it should not take place until you are advised that it is safe to do so. The government have highlighted that people should be prepared to delay or pause moves where possible. This may become a measure that is implemented by the government depending on the situation of the virus in the coming weeks.

The property market in Scotland and Northern Ireland is still open and functioning in line with similar guidance to England and Wales.

If a clinically extremely vulnerable individual is due to move, they should consider the circumstances and situation around their move. They may also wish to seek medical advice to ensure the move is carried out safely and with limited risk to their health.

Obviously, if a person has tested positive for coronavirus or is self-isolating, they should consider delaying their move until it is safe to do so.

Further information on this topic can be found on DAS Householdlaw. To find out if you have access to this resource, please consult your policy documentation or contact your insurance broker.

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Customers can also access guidance on a wide range of legal matters such wills and probate, consumer rights, property lettings, divorce, contesting parking tickets, holiday and flight compensation, neighbour disputes and identity theft & fraud.

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Disclaimer: This information is for general guidance regarding rights and responsibilities and is not formal legal advice as no lawyer-client relationship has been created. Note that the information was accurate at the time of publication but laws may have since changed.

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