Matthew*, a landlord, contacted us regarding significant rent arrears. His tenant owes over £7,000 in rent arrears and has been with the same landlord for 11 years. The tenant, who has been ill for some time, has recently moved to Universal Credit.
Matthew is having difficulty paying the mortgage and wishes to get the rent paid directly through Universal Credit but isn’t aware of the process.
Our advice
We provided Matthew with advice to help him understand the legal options available in this situation.
We advised Matthew that:
• Universal Credit can pay rent directly to the landlord if there are two months of arrears. We sent him the link to the online form.
• Regarding the arrears, it may be possible to come to an agreement with the tenant to pay these off. Our mediation service may be able to assist with this.
• If no agreement was possible, the landlord could ask Universal Credit to set up a Third-Party Deduction from the tenant’s UC payment to go towards the arrears every month. Third-party deductions may be set up for a property where the tenant is currently living and has rent arrears.
• If it was not possible to set up a Third-Party Deduction for £7,000, he would need to contact a solicitor to discuss preparing a Civil Bill. Alternatively, he could try the Small Claims Court if he wrote off the amount owed above £5,000. The Small Claims Court does not require the assistance of a solicitor, but the maximum claim value is £5,000.
*Name has been changed to protect privacy