Rent arrears policy

This policy sets out how Ashfield District Council (“the Council”) prevents, manages and recovers rent arrears (for its current and former tenancies) in a fair, consistent, and supportive way.

The policy applies to tenants who hold an Introductory, Secure, or a Demoted Tenancy with the Council.

Rental income is the Council’s primary source of funding for delivering housing services, and is ‘ring-fenced’ for this purpose, including tenancy management and the repair and maintenance of homes. The Council aims to maximise the collection of rental income and other tenancy charges to ensure the continued delivery of high-quality services to tenants.

This policy will be applied in a firm but fair and supportive manner. Where tenants fall into rent arrears, the Council will prioritise early contact and intervention, providing advice and assistance at the earliest opportunity to help prevent arrears from increasing. Payment of rent and other tenancy charges is a condition of all the Council’s tenancies. 

The Council's aims and objectives are to:

• Maximise income collection and minimise arrears by making sure tenants understand their responsibility to pay rent and service charges from the start of their tenancy. The Council aims to collect 100% of all rent and tenancy charges due and will provide early intervention, appropriate support, and high-quality advice where needed.
• Provide a high-quality, responsive income service that is delivered fairly, consistently, and efficiently, with the tenant voice informing and shaping the design and delivery of the service.
• Ensure tenants understand the Council’s income collection procedures, including how rent and service charges should be paid and the actions that may be taken where payments are not made as required.
• Where appropriate, take timely legal action to minimise the escalation of arrears, ensuring that all action is proportionate and compliant with relevant legislative requirements.
• Use eviction only as a last resort, where all other reasonable actions and remedies have been exhausted.
• Maintain clear, effective, and timely communication with tenants, providing appropriate support tailored to individual needs in line with the Council’s Reasonable Adjustments Policy and Vulnerable Tenants Policy. This includes supporting tenants to improve financial capability, such as budgeting skills, facilitating access to internal and external support services, and working with other agencies to support vulnerable tenants at each stage of the recovery process.
• Explore the use of alternative payment options to address rent arrears for example,  requesting payments directly from benefits, where possible. 

As part of the lettings process, an affordability assessment will be conducted with the applicant to determine whether the property being offered is financially sustainable. The offer of a property may be withdrawn if the tenant is not able to afford it.

Where prospective tenants are identified as being at risk of financial hardship, appropriate advice, guidance, and support will be offered to help them sustain their tenancy and manage their financial circumstances.

At the pre-sign-up stage, it will be determined if the prospective tenant has any support needs and is involved with any other agencies. 
Housing applicants will be advised that they are required to pay the first week’s rent in advance at the sign up stage if they accept the offer of the property. This requirement is clearly stated in offer letters, so applicants are fully aware of this expectation before accepting the tenancy.

At the sign up stage, Lettings Officers will explain the tenant’s responsibility to pay rent and any applicable service/tenancy charges, as well as the consequences of non payment.

All new tenants must pay their first week’s rent in advance, even if they expect to receive benefit towards their housing costs or not. In exceptional circumstances, the Lettings Officer may consider accepting a payment of less than one full week’s rent. A repayment agreement will need to be make up any shortfall. 

Tenants will be informed that if they do not pay their rent in advance, their rent account will begin in arrears.
Lettings Officers will:

• Provide all new tenants with detailed information on the rent and tenancy charges for their home and the amount payable. 
• Provide information on the different rent payment methods available and promote Direct Debit as the preferred method of payment.
• Advise tenants to contact the Housing Management Department’s Income Team as soon as they experience difficulties paying their rent, or if their circumstances change.
• Offer an appointment with a Money Management Advisor to provide support with benefit claims or budgeting advice.
• Where appropriate, offer an appointment with a Tenancy Sustainment Officer, for example where a tenant is vulnerable and requires additional support to set up their tenancy.

Money Management Advisors will:

• Review all new tenants’ rent accounts on a regular basis to check if tenants are paying their rent.
• Where tenants have arrears on their account, Money Management Advisors will:
  • Contact the tenant to check the position with their current rent account.
  • Check whether Housing Benefit / Universal Credit payments are likely to be received.
  • Support tenants with applying for benefits and in making an application for Discretionary Housing Payments (where applicable).
  • Offer budgeting advice and support with applying to charities and external agencies (if eligible).
  • Discuss payments required to clear any arrears or make affordable payment arrangements to clear any arrears / work towards paying in advance.
  • Advise of the consequences of non-payment and next steps.

Housing Officers / Tenancy Sustainment Officers

• Make early contact with all new tenants, ideally within the first six weeks of their tenancy, to ensure rent payments are being maintained and to identify and address any difficulties they may have in paying their rent / sustaining their tenancy.
• Make referrals to the in-house Tenancy Sustainment or Money Management Teams for advice and support if appropriate.

All tenants have a responsibility under the terms and conditions of their Tenancy Agreement to pay rent and service/tenancy charges due, in advance. This responsibility applies regardless of whether the tenant is claiming Housing Benefit or the Universal Credit housing element.
Tenants are responsible for making and maintaining any claim for Housing Benefit or the Universal Credit housing element to which they are entitled, ensuring that any housing payments they receive are used to pay their rent. Where rent is paid at a frequency other than weekly, for example monthly, the rent account must be maintained at least one month in advance.

It is the tenants responsibility to notify the Council of any changes in their circumstances, which may affect their ability to pay their rent. They must also report any changes of circumstances to the relevant benefit agency if this is likely to impact on their benefit entitlement.

An Introductory Tenancy is a one-year probationary tenancy which applies to all new tenants, who have not held a secure or assured tenancy immediately before they signed for the tenancy.
An Introductory tenant does not have the same rights as a Secure tenant. Mandatory Possession would be awarded if the case progressed to Court within the first year of that tenancy if the tenant breaches their tenancy conditions.

Where introductory tenants’ rent accounts remain in arrears, a decision will be made to proceed with the arrears stages and consideration to either serving an extension of the introductory tenancy period or notice of possession to end the introductory tenancy. 

If two people have signed the tenancy agreement (joint tenants), they are jointly and severally liable for the payment of rent and any service/tenancy charges. This means that each person is fully responsible for the payment of rent/service/tenancy charges and all arrears on the rent account. Tenants will be made aware of this when they sign for a property.

In cases of rent arrears, the Council will:

• Address all letters to all tenants named on the Tenancy Agreement.
• Make reasonable efforts to speak to all joint tenants to discuss the arrears and agree appropriate action.
• Serve legal notices and provide legal documents, such as Notice Seeking Possession, to all tenants named on the Tenancy Agreement, in accordance with legal requirements.

Rent and service / tenancy charges are reviewed each year in line with Government policy. Any change will take place from April, and the Council will give a minimum of four weeks’ notice for any changes.

Rent and service / tenancy charges are due weekly over a forty-eight week (or forty-nine week on occasions where there are fifty three Mondays in the financial year) collection year. 

Four rent free weeks are set out in the annual rent calendar, which is available on the Council’s website.
A rent account is considered in arrears if payment is not received during the week, it is due.

The Council promotes a range of convenient methods for paying rent, including standing order, bank transfers, Direct Debit, and debit or credit card payments. Tenants are encouraged to make payments promptly to help maintain their accounts. Full details of all available payment options can be found on the Council’s website, on the reverse of rent letters, or provided upon request.
Payment by Direct Debit will be promoted as the Council’s preferred method of payment, as it helps tenants to manage their rent payments and reduces the risk of arrears.

Tenants can register for the Council’s Tenant Portal which allows tenants to make a rent payment, view a rent account statement, report/view repairs, and update contact details. The Portal can be accessed through the Council’s website. If tenants are unable to use the Portal, services can still be accessed by contacting the Council by email, telephone or in person. 

Where a tenant falls into arrears, an officer will contact the tenant to discuss the account at the earlier opportunity and request that a payment is made to clear or reduce the arrears.

Tenants will be provided with advice on claiming benefits and referrals will be made to the money management team who can help with making Universal Credit and Discretionary Housing Payment applications, Housing Benefit applications, budgeting support, and applying to charities and external organisations.

Officers within the Income Team will verify Universal Credit housing costs and will apply for the ’housing costs’ element of a Universal Credit claim to be paid directly to the Council if a tenant meets the criteria forAlternative Payment Arrangements (APA).

Where a tenant has applied for Universal Credit or Housing Benefit, is doing all they can to ensure the claim is assessed without delay, and is making interim payments as required, legal action will be not taken pending assessment of the claim. 

The Council takes a firm but fair approach to arrears recovery, balancing enforcement with support. It recognises that tenants’ circumstances can change for a variety of reasons, which may make it difficult to pay the rent, and will seek to take this into account when determining appropriate action.

The income team will monitor rent accounts where arrears have accrued and will take appropriate action in line with the Council’s Rent Arrears Procedure to prevent arrears from increasing. 

Rent arrears recovery is based up on a staged escalation process. This involves a series of letters and contact being made. The stages and actions depend on the amount/rate of escalation of arrears and length of time the tenant has been in arrears. 
When recovering arrears, we will tell tenants the consequences of not paying. Any actions we are taking will be sent in writing to tenants and documented on the tenancy records.

Officers will make personal contact with tenants who are in arrears. This could be by letter, telephone, text message, email, a visit to the property or inviting them into the office for interview, whichever is the most effective/appropriate. At each stage of the process, officers will contact tenants and ask them to pay the money owed.

When officers conduct visits to a tenant’s home, they will present their Council identification card and clearly explain the purpose of the visit. To respect privacy and confidentiality, officers will request to enter the property so that discussions are not held on the doorstep. If it is not convenient for the tenant to discuss their rent account at that time, an alternative appointment will be arranged. The outcome of all visits will be appropriately documented.

Officers may work outside normal office hours when required to contact tenants that are unavailable during office hours i.e. during evenings and weekends. 

Officers will comply with the relevant Pre-Action Protocol for Possession Claims issued by His Majesty’s Courts and Tribunals Service (HMCTS), ensuring that tenants are treated fairly and given appropriate opportunities to address their arrears before legal action is considered.

If tenants cannot clear the balance on their account in full, we will agree a repayment plan based on what they can afford. Tenants’ circumstances will be considered. All repayment plans will be confirmed in writing.

Should a tenant keep to the repayment arrangement, we will not take any further action. Should the tenant fail to make the agreed payments, case escalation / legal action will follow. 

Where a notification is received under the Debt Respite Scheme (Breathing Space), rent arrears recovery action will be halted during the breathing space period. Tenants must continue to pay their rent and service/tenancy charges whilst under ‘breathing space’ terms. If they do not, we will contact the Insolvency Service to advise them of this, as it may breach their ‘breathing space’ terms and may result in it ending early.

A formal notice will be served if the Council is considering possession action. This Notice is a legal requirement and gives 4 weeks' notice of the issue of court proceedings.

Before any possession action is taken, the tenant will be contacted by letter to warn that a Notice will be served setting out the Council’s intention to seek possession of the property.

If the tenant fails to engage after the warning letter and any further contact, the Council will serve either a ‘Notice Seeking Possession’ (for a Secure tenancy) or a ‘Notice of Proceedings for Possession’ (for an Introductory tenancy).

The Notice explains why the Council is seeking to repossess a home and gives a date after which court proceedings may be started. The Notice advises tenants to contact agencies able to offer support and / or representation in Court, including the Citizens Advice Bureau and Solicitors.

All Introductory Tenants have the right to appeal the decision to end an Introductory Tenancy. Details of how to apply for a review, along with the relevant application form, will be included within the Notice.

Further contact will be made with the tenant(s) after the Notice has been served. If the tenant does not engage or make / maintain a repayment arrangement, recovery action will continue.

The Council may extend the terms of an introductory tenancy by a further 6 months if the rent account is in arrears. The tenant has a right to request a review panel hearing on the decision to issue the extension. The tenant must do this in writing within fourteen days of the date of issue of the notice.

A hearing will be arranged for an independent officer to check that the arrears procedure was followed correctly and to decide if the extension of tenancy should continue.

The Council may consider ending an introductory tenancy. Possession proceedings must start before the anniversary date of the tenancy. The tenant will have the right to appeal against the Notice being served. The tenant must do this in writing within fourteen days of the date of issue of the notice.

A hearing will be arranged for an independent officer to check that the arrears procedure was followed correctly and to decide if the termination of tenancy should continue.

The Council will only apply to the court when all other reasonable options have been exhausted. The Council will request an order for Court Costs. The tenant will be responsible for any Court Costs as well as any outstanding rent arrears. All costs will be added to the tenant’s rent account.

Once the notice has expired a court hearing will be arranged for Mandatory Possession to be granted by the court. The court fees will be added to the tenants rent account.

Prior to the court hearing for possession, officers will continue to contact the tenant to notify the tenant the Council’s intention to seek a Mandatory Possession Order and to advise that no further right of appeal is possible. Advice will be provided on alternative housing options.

If after a Notice has been served, a tenant does not pay their rent or keep to an agreement to reduce the arrears they owe, we will look to take action through the Courts to take possession of a property and recover any debts outstanding.

The Council will only apply to the court when all other reasonable options have been exhausted. 

We may issue possession proceedings for any tenant who owes 8 weeks’ rent or £700 (whichever is greater).
We will attempt to contact the tenant warning of Court action, before we apply for possession proceedings.

Further contact will be made with the tenant after the Possession Order application to try and clear the rent account, to prevent a Possession

Order being granted against the tenant.
The court will provide a date for the possession hearing. In advance of the court hearing, Officers will contact the tenant(s) to discuss the process.

If the tenant fails to comply with a Possession Order made in Court, then we will look to take possession of the tenants home. Tenants will be advised to seek a variation to a Court ordered repayment plan if the plan is unsustainable and/or putting the tenant under undue financial pressure.

Tenants will be responsible for any Court Costs incurred as well as any outstanding rent arrears. Any court costs awarded by the Court will be added to the tenants’ rent account. 

We may apply for a warrant of eviction if the tenant does not comply with order made in Court. Before this we will attempt to contact the tenant to discuss the situation, warning them of eviction and telling them that unless the Possession Order is brought up to date, we will apply to the Court to evict them.

We will ask for the costs of any eviction application to be awarded against the tenant. 

If we make an application for eviction, we will not agree to suspend the warrant. The tenant will need to make an application to the Court to request this. If the eviction is suspended and a subsequent order is made in Court and that is broken, we will make a further eviction application.

Garage and plot tenants must keep their rent account up to date. If a garage or plot rent account falls into arrears, the Council may serve a Notice to Quit to end the tenancy and recover possession of the garage / plot.

Before serving a Notice to Quit, the Council will give tenants a reasonable opportunity to clear the arrears in full. Any outstanding arrears will be pursued in accordance with the Council’s former tenant arrears recovery process.

Any goods or possessions left in the garage after the Council takes possession will be removed and disposed of.

The Council will notify tenants who have a large amount of credit on their rent account.

Tenants may request a refund of any credit balance. Before making a refund, the Council will check whether the tenant owes any other Council debts. If so, the credit may be used to reduce or clear those debts.
In accordance with the terms of the Tenancy Agreement, the Council may retain a sum equivalent to one week’s rent on the account or the equivalent amount to cover any charges/net rent before the next payment is made.

If you have a joint tenancy any rent refunds will need to be paid to a joint bank account, or we will need permission from the joint tenant to pay these to an individual tenant. We aim to process refunds within 28 working days following receipt of a completed refund form.

The Council will pursue former tenancy arrears using proportionate and appropriate methods, offering support and repayment plans where needed. 

Before a tenancy is terminated, the Council will remind tenants of their responsibilities under the Tenancy Agreement. This will include informing tenants of any outstanding balance on their rent account and requesting payment to clear the debt.

When tenants give notice to end their tenancy, officers will request a forwarding address to allow for contact regarding any outstanding matters.

Where a debt remains outstanding after the tenancy has ended and no forwarding address has been provided, the Council will make reasonable efforts to trace the former tenant’s whereabouts, including the use of Experian and other appropriate tracing methods. Where appropriate, an external collection agent may also be instructed to recover the debt.

Where a repayment agreement is made to clear an outstanding debt, the terms of the agreement will be confirmed in writing by Officers.

In the event of a resident’s death (for sole tenancies), we will attempt to claim any arrears from the deceased’s estate.

Debts will be written off in accordance with the Council’s Irrecoverable Debts Procedure.

Tenants can request a rent statement at any time. This will help them to keep track of their account and payments.

Rent statements are also available through the Tenants Portal which can be found on the Council's website. Details and how to register can be provided upon request and are also available on the Council’s website. 

The Council has many tenants who are vulnerable due to age, health, disability, or personal circumstances. Without appropriate support, these tenants may be at greater risk of accruing rent arrears.

The Council is committed to ensuring that all tenants receive the support they need at the earliest possible stage. To achieve this, records are maintained of tenants who identify themselves as vulnerable, and these vulnerabilities are considered in all contact and communications.

Communication methods and approaches are tailored on a case-by-case basis, ensuring they are appropriate to the individual tenant’s needs and circumstances.

Where a tenant is identified as being vulnerable, the Council will follow its Vulnerable Tenants Policy to ensure that all relevant factors are considered and that appropriate support is provided.

Tenancy Audits are undertaken to review vulnerabilities and to ensure these are kept up to date.

Officers will refer the tenant(s) to internal support services for support and to appropriate external advice and support organisations.

The Council may pursue other options, including applying for Alternative Payment Arrangements/and or direct deductions from benefits where we believe the tenants will benefit from this due to vulnerabilities and to prevent rent arrears from accruing on the account.

Officers will undertake Equality and Proportionality Assessments to ensure that any vulnerabilities are identified and fully considered when determining the appropriate type of contact and course of action.

In accordance with the Council’s Lettings Policy, the Council does not allow tenants to transfer with our stock if they owe debt, unless exceptional circumstances apply. An example of exceptional circumstances is where the Police advise the Council that a tenant, or a member of their household, is at risk if they remain. In such circumstances, the case will be reviewed by a senior officer, considering the individual circumstances and any supporting information provided.

Where a transfer is approved as an exception, clearing the rent arrears will be a condition of the new tenancy. Tenants’ will be informed of this requirement and will be required to agree to and sign up to a repayment plan for the former tenancy arrears before the move can take place.

Where a tenant wants to exchange with another tenant and they have arrears, the Council may give provisional permission to exchange, conditional upon the arrears being cleared before the exchange can take place.

The Council will only share rent account information with other landlords when the tenant has given consent in writing.

It is the responsibility of the Assistant Director, Housing Management to ensure that the implementation of the Rent Arrears Policy is monitored.

The Income Manager is responsible for delivering the policy and is accountable for its implementation and for officer training.

The Income Team Leader is responsible for giving advice and supporting staff when dealing with tenants who are in serious rent arrears and for those facing eviction. All serious cases will be discussed with the Income Manager to ensure that all actions have been taken, and support has been offered in order that rent and tenancy charges are repaid before submitting the case to court.

All Officers dealing with lettings, rent collection and arrears recovery have the responsibility to read, understand, and implement this policy.

The Income Manager will monitor, review, and evaluate performance on rent arrears recovery on a weekly basis. 
The Council sets a range of local performance indicators annually, which are monitored on a regular basis to support continuous improvement in service delivery and overall performance. Statutory performance indicators will also be monitored and reported on.

Regular reports will be submitted to the Assistant Director, Housing Management detailing the amount of arrears, numbers of tenants and the income team’s performance against targets for recovery for rent arrears. The report along with profiling data will be used to identify trends in dealing with rent arrears and potentially inform the need for an improvement plan. 

The Assistant Director, Housing Management will report performance to the Senior Leadership Team.

This policy will be reviewed every two years or in line with legislative, regulatory requirements or best practice.

The Council has a complaints procedure that is available to any person who is not satisfied with the way in which their case has been dealt with. Details are available on the website or upon request by telephoning:

• phone: 01623 450000

Where a tenant disputes the level of rent arrears or a proposed repayment arrangement, this will be considered separately from the Council’s formal complaints procedure. The case will be reviewed by the Income Team Leader, who may, where appropriate, refer the matter to the Income Manager for further consideration.

A full Equality Impact Assessment has been completed for this policy.

Produced by: Nicky Moss, Assistant Director - Housing Management

Approved: 3 August 2026 V1

Next review date: August 2028