Last Updated: 25/5/2020
Private renters have been left heavily exposed by the lack of measures put in place to protect them against financial difficult during the Covid-19 pandemic.
Whilst mortgage holders are enjoying a 3 month payment break (which has been extended for a further 3 months), private renters have been left paying the full cost of their rent payments.
The amount of people that rent properties in the United Kingdom is 20%, this equates to a massive 4.6 million households (Government Source).
This will undoubtedly leave a massive financial strain on a high amount of people who can no longer afford to pay their rent payments. So let’s have a look at options for you if you are struggling to pay your rent during this period.
- Payment break – Your landlord or property agents may authorise a payment break in this period if you explain the circumstances which have led you to not be able to pay. I have seen this happen successfully quite a few times recently, which is good news.A lot of the times the deal which is agreed will add the rent on to the rest of the rental period. This is how the mortgage payment break works. The problem with this is the future payments can jump up quite significantly and quickly become unaffordable.
- Use credit – We have noticed banks and credit card companies are extending more credit to people who are struggling at the moment. It would not be responsible for me to advise you to do this. Debt has a long term detrimental effect on your financial health, and should be avoided.
- Look for a debt solution – Rent arrears can not be included in IVA’s or debt management plans but the debt surrounding them can. You can consolidate all of your other payments into one lower monthly payment with an IVA, for example. See our page: What is an IVA? IVA’s start at £80 per month and the term is usually 5 years (60 months). Your rent arrears would not be included in your IVA, unless the debt was crystallised and you were no longer living in the property.
If you would like to discuss any debt solutions further, you can contact me by clicking Get Started for Free or just start a chat with me when I am online.