Effects of cost of living crisis drive rise in rent arrears in Nairnshire
RENT arrears for council tenants in Nairn and Cawdor are on the rise.
According to a recent housing performance report presented by council officers at the Nairn area committee last week, total tenant arrears for the fourth quarter of the 2022/2023 financial year totalled almost £160,000.
That was an increase of almost 40 per cent compared to the same period in 2021/2022 when the total was £114,666.
The level of arrears rose consistently over the year and was recorded at £110,830 for quarter one, £138,219 for quarter two and £146,630 in quarter three.
Nairn Citizen’s Advice manager Gill MacLean said the rise was possibly down to legislation aimed at addressing the ongoing cost-of-living crisis.
She said: “Our experience at CAB is that the Highland Council’s interpretation of the legislation is that they are not taking action to enforce the rent arrears at the moment – therefore the amount of arrears is growing.
“This is also due to the impact of cost of living and high energy costs over the winter – some tenants might have had to choose whether to heat their property or pay rent.
“Our bureau has had a significant number of clients seeking advice as they have been self-rationing energy and making use of food banks.
“Thus, clients have less money to use on rent, which leads to an increase in rent arrears.”
While presenting the performance report at the area committee, Highland Council housing manager Sandra MacLennan stated that there are currently 270 cases of rent arrears for the area, most sitting in the band of £75 to £250.
Homelessness presentations received by Highland Council in Nairnshire were also higher in quarters three and quarter four, at 18 and 17 cases respectively.
A total of 372 presentations of homelessness was made across the whole Highland region in quarter four.
Ms Maclean said: “We have had an increase with private landlords serving notice and tenants presenting as potentially homeless as a result.
“However, Highland Council have not been taking action regarding this until tribunal action has been raised and an order issued.
“As the legislation has now been in place for a while, it may be that more landlords are going through the process – which is not a quick process – so, perhaps we are seeing the consequences now.”
She added that since the Covid pandemic there had been an increase in people looking for advice on housing and homelessness following relationship breakdowns.
Their office, she added, is very busy trying to help people manage increasing levels of debt, with increasingly complex cases presented.
Councillor Barbara Jarvie said: “This seems to be a Highland-wide trend but it is a lot of money that is in arrears.
“Most of it is smaller amounts, which isn’t huge, but to some people it is a lot of money and if they are struggling to find it it’s important that there is a support network in place to support them.
“I am particularly worried about carers, because many don’t get carers allowance but can’t literally get more hours of work because they are looking after someone else.
“I just want people to go forward to the likes of CAB or contact the housing department. Ask for help because it is there – it’s better to reach out rather than letting this become a bigger problem.”
Anyone seeking help can contact their local CAB, housing charity Shelter, or Highland Council.
The Scottish Government’s website also provides details of debt advice agencies at mygov.scot/support-money-debt.
Highland Council have been contacted for comment.