Grants for tenants in rent arrears

£10m to help people worst affected by pandemic to avoid eviction

Councils have been given £10 million to provide grants to tenants who have fallen behind on their rent as a result of the pandemic and are at risk of eviction.

The grants will help tenants who are struggling financially as a direct result of the pandemic, allowing them to reduce or pay off their rent arrears. They will be available to tenants in both the private and social rented sectors.

This is part of a package of measures available to local authorities to prevent homelessness, alongside Discretionary Housing Payments and advice on maximising income. The grants also come on top of the Scottish Government’s £10 million Tenant Hardship Loan Fund.

Housing Secretary Shona Robison said: “We have been doing all we can to support tenants who are struggling as a result of the pandemic, and this latest funding takes our total housing support to almost £39 million.

“These grants will support tenants and landlords who are willing to work together to address rent arrears and agree a repayment plan to ensure the tenant is able to avoid eviction.

“Councils have substantial experience in supporting people who have fallen behind on their rent, and are therefore well placed to work with both tenants and landlords in making use of this grant fund. Anyone who has been financially impacted by the pandemic and needs help to avoid eviction should contact their local authority housing department to discuss their circumstances.”

Councillor Kelly Parry, COSLA Community Wellbeing spokesperson, said: “We are working closely with the Scottish Government to support tenants through the grant fund.

“The pandemic has resulted in some facing a significant loss of income which has resulted in a proportion of these developing rent arrears. The fund is limited and therefore will be targeted at those most at risk of eviction, but will allow local authorities, tenants and landlords to work together to stay in their homes and prevent homelessness.

“Councils have a lead role in supporting a fair and inclusive recovery. Enabling people to sustain their tenancies helps maintain their important community connections.”

Nearly £1.5million will be allocated to Edinburgh to help those in social and private tenancies at risk of becoming homeless.

This share of the Scottish Government’s new £10m Tenant Hardship Grant Fund will further aid the City of Edinburgh Council in preventing evictions as a result of COVID-19 related rent arrears.

The aim of the fund is to provide an additional tool for the Council to help save tenancies, create sustainable housing solutions for individuals and prevent homelessness, alongside its other initiatives in place.

This includes the Council’s Private Rented Service (PRS) Team, which looks to help private renters keep their existing tenancy or to move to either a new private or mid-market rent secure tenancy, and  the ‘multi-disciplinary response’ team which helps Council tenants who are struggling to maintain their tenancy or falling into rent arrears.

In addition Edinburgh Help to Rent, which is a service the Council contracts Crisis to deliver, provides rent deposit guarantee bonds. 

Under Scottish Government guidelines, local authorities have to allocate the Tenant Hardship Grant Fund by the end of this financial year (March 2022). The Council is currently assessing eligibility criteria in order to support those most at risk.

Councillor Kate Campbell, Convener of the Housing, Homelessness and Fair Work committee said: “This money from the Scottish Government comes at a critical time. Between the cut in Universal Credit, the national insurance increase, the end of furlough, rocketing household fuel bills due to the energy crisis, and now the fuel crisis – households are being hit hard.

“We will use this money to help people who have fallen into rent arrears during the pandemic, to help prevent evictions, homelessness and the burden of debt being placed on vulnerable households. This is a lifeline that will help people to stay in their own homes.

“Our Private Rented Sector Team has stopped 427 households from becoming homeless in the last 18 months, while our multi-disciplinary response team is successfully supporting our council tenants who’ve fallen into arrears. This funding from the Scottish Government means we can do even more to prevent families and households becoming homeless.”

Councillor Mandy Watt, Vice Convener of the Housing, Homelessness and Fair Work committee said: “The work being done by the Council and in collaboration with partner organisations like Crisis has already made a big difference to preventing people from becoming homeless. But there is still more that needs to be done with around 6,000 people currently homeless in our Capital.

“As we come out of the Covid-19 pandemic, it could become even more difficult to find suitable accommodation for everybody who needs it. So the work of our prevention teams will be more important than ever.

“We will be working to identify those most at risk without delay because many people are already in financial difficulty and it’s likely to get worse as winter weather and rising energy prices put more strain on household budgets.”

Nina Ballantyne, Citizens Advice Scotland Social Justice spokesperson, said: “The Citizens Advice network saw a real spike in demand for housing-related advice during the pandemic. Our analysis suggests almost 300,000 people in Scotland missed a housing payment last year because they ran out of money before pay day.

“We called for more support for tenants and are delighted to see this fund launch – we’d now encourage people to seek advice on what support is right for them and make use of all the options available.”

Local advice is available from Granton Information Centre. Telephone 0131 552 0458, 0131 551 2459 or email info@gic.org.uk

Metro Bank’s top tips for debt management

·       Debt Awareness Week 22 – 28 March 2021

·       Nearly 500,000 in rent and mortgage arrears

·       Mortgage payment holidays deferral ends on 31 March 2021

For the first time since the pandemic hit, normal service will start to resume as financial payment holidays wind down and nearly nine million Britons who have taken on debt during the pandemic will need to start tackling their debt repayments. 

Hot on the heels of Debt Awareness Week (March 22-28), March 31st will be the last day that homeowners can ask for a mortgage payment deferral.  The UK’s community bank, Metro Bank is advising any homeowner concerned about being able to return to normal payments to talk to their mortgage provider as soon as possible.

Recent published data estimates close to half a million people are in rent or mortgage arrears  because of coronavirus and 130,000 UK households  are still taking advantage of mortgage payment holidays,  which is of concern as 16 million people expect their income to fall in the next six months.

Andy Piggott, Director of Lending Products, Metro Bank, said: “We recognise that homeowners have faced extraordinary circumstances impacting their finances and we are here to help. 

“We want to talk to our customers who are struggling and encourage them to contact us as soon as possible. Anyone worried about how they are going to start paying their bills again should be proactive in seeking support. Good lenders will want to work with their customers to help find a manageable solution.”

Metro Bank has put together these top tips to tackle any financial worries:

TALK TO YOUR LENDER

Good lenders want to help.  If you can’t resume your payments, they can look at a range of options including:

·       Short term options, such as accepting reduced payments for an agreed period of time.

·       Long term options, such as extending your mortgage period to reduce payments.

·       Good lenders will explain the impact of what the tailored support means for you and your mortgage, including what will be reported on your credit file and whether you will be considered to be in arrears during any agreed arrangement.

FREE DEBT ADVICE

These organisations offer free help about budgeting and can give advice on how to talk to your lender about your repayments:

1.     The Money Advice Service – moneyadviceservice.org.uk

2.     Citizen’s Advice Bureau – citizensadvice.org.uk

3.     StepChange – stepchange.org

4.     National Debt Line – nationaldebitline.org

5.     Shelter – shelter.org.uk

6. Granton Information Centre – www.gic.org.uk

SUPPORT FOR MORTGAGE INTEREST

If you are on state benefits – income support, pension credit, job seeker’s allowance, universal credit or employment or support allowance – you may be able to get government help for interest payments on your mortgage – visit gov.uk/support-for-mortgage-interest for more information.

For more information please visit

– https://www.metrobankonline.co.uk/mortgages/i-want-some-information-about/mortgage-payment-support/

CASE STUDY: PIOTR

Providing welfare advice at the right time and in the right place can both provide health benefits for patients and reduce demand on the NHS.

Funded by NHS Lothian through the Edinburgh Health and Social Care Partnership, Granton Information Centre runs an advice service in GP surgeries and medical centres.

Piotr (35) found Granton Information Centre’s GP service a lifeline when he and his family faced eviction:

“Life was going along quite happily. We didn’t have much money but my children were well fed and clothed and we were okay. That all changed in the space of a few weeks and I struggled to cope,” Piotr explained.

“First, my wife had to give up her work earlier than we had planned. She was expecting our third child but she became ill so she had to stop working. She had high blood pressure and we did not want to put her life, or the baby’s life, in danger.

“We had been saving what we could because we knew my wife would be going on maternity leave, so it just meant being even more careful about what we spent.

“Then, two things happened in the space of a few days. First, my car broke down and it needed a really expensive repair. At the time I was doing three different jobs to try to make ends meet. I needed the car for delivering parcels during the day and also to get me to my other jobs. What made things worse was that if I didn’t work I didn’t get paid.

“Then, the same weekend, I injured myself playing football with my son! It was crazy – I fell awkwardly and landed on my wrist! I had planned to cycle to one of my other jobs to keep some money coming in, but I sprained my wrist and ankle and so now I couldn’t even do that!

With no income and debts quickly spiralling, Piotr ignored letters from his landlord.

“I put it off”, he explained. “Although my English is okay, the letters were difficult to understand. I did not want to worry my wife so I kept it to myself. I hoped that, once I was working again, I could sort it and things would be okay. That was wrong – things would just have got worse and worse.”

Piotr accompanied his wife to an appointment to see her practice nurse, who suggested it would worthwhile speaking to a Granton Information Centre adviser.

The adviser was in the medical centre at the time – and Piotr explained his problem.

“At last I felt able to share my problem with someone. She was very patient”, Piotr said. “We were so lucky to have met her that day. She explained that we were facing eviction: unless immediate action was taken we would have found ourselves homeless.

“It was very serious, but our adviser was so good. She made sure that we were able to stay in our home. She also worked with us to find out what benefits we were entitled to. I had thought I could not claim benefits because I was working – but I was wrong. ”

While Piotr and his family are not debt-free, their debts are being managed and the family are now receiving the benefits they are entitled to.

Piotr concluded: “It was a relief to talk over our problem with someone who understands the system. I had been keeping it all to myself and it made me ill. We were so close to losing our home.

“Now, we can plan our future. And I am more careful when I play football!”