by Denzel
9:58 AM, 5th November 2024, About 2 months ago 3
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Did you know there’s a financial safety net that could help cover rent arrears and prevent tenancies from being put at risk? It’s called the Discretionary Housing Payment (DHP) and Rachel Reeves latest Budget has added 1 Billion extra pounds to the available pot. However, not enough landlords or tenants know how to tap into these funds.
DHPs are designed for people in genuine financial difficulty who need help staying on top of rent. But here’s the reality: many applicants are turned down, often because they don’t know what the council needs to see.
If you’re a landlord or letting agent, helping your tenant understand DHPs could be a game-changer. Here’s how you can make a strong case for support and potentially safeguard your tenancy.
For those who might be new to this, DHPs are special funds that councils allocate to help people who are struggling to meet their rent due to unforeseen circumstances. They aren’t meant as a long-term solution but can make a huge difference for those facing temporary challenges. This is especially important if a tenant’s arrears are beginning to accumulate; securing a DHP could mean the difference between preserving a tenancy or seeing it end prematurely.
Here’s how landlords and tenants can work together to improve the chances of a DHP application getting approved:
Councils need to be confident that their support will have a lasting impact, not just a temporary fix. This means tenants should demonstrate how they’ll stay on track after receiving DHP support. For example, if they’re close to paying off a credit card, they might include a note explaining how that will free up more income for rent in future months. Encourage tenants to outline a realistic and clear plan to stay current on rent.
Why this matters: Councils prefer to fund applications where they see a sustainable solution in sight rather than just putting a quick patch on a bigger problem.
For DHPs to be granted, the council must see that arrears are due to unavoidable financial issues, not poor choices. If a tenant lost their job unexpectedly, faced a health crisis, or had an emergency expense, they should be upfront about it in their application. The council responds best to clear and honest reasons for financial hardship.
Why this matters: A compelling backstory provides insight into the tenant’s situation and demonstrates that their need for help is both genuine and circumstantial, not ongoing.
The size of arrears is a significant factor for councils. If rent arrears have built up significantly, the council may consider the situation beyond what a DHP can resolve. The sooner landlords and tenants address arrears, the better the chance of receiving support. If arrears are beginning to build, it’s important to act quickly and make the case that this assistance will genuinely help.
Why this matters: By applying early, tenants and landlords show the council that the tenancy is still viable and that their help can make a meaningful impact.
When councils assess DHP applications, they’re typically asking two big questions:
The more convincingly these questions are answered, the better the chances of securing a DHP. As a landlord, guiding tenants to prepare a strong application can be beneficial on both sides—it stabilises the tenancy and protects against the risks of rising arrears.
If you’re a landlord or letting agent navigating a challenging situation with rent arrears, remember—eviction doesn’t have to be the only answer. There may be solutions available that can protect your income and help keep tenants in their homes.
I’m Denzel, CEO of Social Housing Options. Our mission is to bridge the gap between landlords and tenants, uncovering solutions that benefit everyone involved. We’re here to provide support at no cost to you or your tenants.
Don’t face these challenges alone.
If you’re dealing with arrears or worried about a tenant’s ability to stay on track, reach out today. Complete the form below to arrange a no-obligation conversation. Together, we can explore ways to keep your tenancy secure and avoid unnecessary disruption.
Every problem has the potential for a positive outcome. Let’s discover the possibilities together.
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Mike
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Sign Up12:06 PM, 5th November 2024, About 2 months ago
Good to know this, I do have a tenant who is two months behind on rent, from a distant past, but has been paying regularly except he fell in arrears around a year ago, I was sympathetic to his problems hence I did not take any eviction proceedings, so may be now is the time to ask him to pay up or face an eviction or the choice is to seek DHP.
As I write this post he had to book cheapest flight to Romania to see his mother who fell suddenly severely ill, on top of that I had to lend him £100 to help him out in times like this, after all we landlords are not made of stones and bricks, our houses are. And yes if necessary we should encourage them to seek help from the council who after all are all mean and rip off all the residents they can using CCTV Cameras, catching motorist inadvertently entering yellow boxes, or get caught for other minor traffic offences, having introduced LTNs, charging for residents parking permits, on top of this charging for emissions based on engine size despite we pay road taxes based on emissions charges, double taxing, so indeed we should all be mean to deal with mean councils; is my moto.
northern landlord
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Sign Up16:07 PM, 5th November 2024, About 2 months ago
It might sound mean but PRS landlords are not social workers. We do not provide social housing. We have no duty of care towards tenants other than providing them with safe decent housing. Something the social sector appears to struggle with.
Bryan
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Sign Up10:22 AM, 6th November 2024, About 2 months ago
All sounds great but these schemes are always partially subjective, open to interpretation and definitely open to abuse. My friend just visited from the south coast and works for the LA there on this very issue. She is subject to abuse almost daily by those trying to claim DHP. They treat it like another benefit they can all get their hands on. My friend generally asks for some bank statements to prove they are in hardship but they refuse to hand them over with a torrent of abuse in return. There are genuine cases but time and effort is being wasted on chancers. There has to be something in return for providing the DHP. How to avoid getting into the same situation. For instance going on cooking courses. One tenant claimed they used to get 4 take-aways per week but now they can only afford 2 because the council doesn't provide enough to live on. There needs to be a massive attitude change and continually handing out benefits is not the answer.