On this page
- Can you rent a property with an IVA?
- Can you stay in your current rented property?
- Will your landlord know about your IVA?
- Will an IVA affect a rental credit check?
- Can you rent a new property during an IVA?
- Will an IVA affect your rental deposit?
- Can you pass a landlord's reference check with an IVA?
- Can you move house during an IVA?
- What if you cannot rent because of your IVA?
- Frequently Asked Questions
Can You Rent a Property With an IVA?
Yes. Having an IVA does not automatically prevent you from renting a property.
However, an IVA can affect your ability to pass the checks carried out by a landlord or letting agent. A landlord may check your credit history, ask for references and assess whether you can afford the rent.
An IVA is recorded on the Individual Insolvency Register while it is active. It will also normally appear on your credit file for six years from the date the IVA starts. This means a landlord or letting agent carrying out appropriate checks may become aware of the IVA.
Whether you are accepted as a tenant will ultimately depend on the landlord or letting agent and their own referencing criteria.
If you are already struggling with debts, you can also read our guide to what an IVA is and how the process works before deciding whether it is suitable for you.
Can You Stay in Your Current Rented Property During an IVA?
In most cases, yes. Entering an IVA does not automatically mean that you have to leave your rented home.
Your rent is normally treated as a household expenditure when your IVA is assessed. You will need to demonstrate that the rent you pay is reasonable and affordable based on your circumstances.
It is important to continue paying your rent during an IVA. Rent is a priority household expense and falling behind could put your tenancy at risk.
If you already have rent arrears, you should tell your debt adviser or Insolvency Practitioner. Rent arrears can be treated differently from ordinary unsecured debts and may not simply be included in an IVA in the same way as credit cards or personal loans.
Will Your Landlord Know About Your IVA?
There is no general requirement for you to automatically tell your landlord that you have entered an IVA simply because you are their tenant.
However, your IVA is recorded on the Individual Insolvency Register, which is a public register. It contains details of current IVAs and can be searched by members of the public.
Whether your landlord becomes aware of the IVA therefore depends on the circumstances. They may become aware of it if they carry out a search or credit check, or if you need to provide information about your financial circumstances when applying for a new property.
The Individual Insolvency Register normally retains details of an IVA until three months after it has ended. You can search the Individual Insolvency Register on GOV.UK.
Will an IVA Affect a Rental Credit Check?
It can.
An IVA is recorded on your credit file and can therefore be visible when a landlord or letting agent carries out a credit check. The IVA normally remains on your credit file for six years from the date it begins.
This does not necessarily mean that you will be refused a tenancy. Landlords and letting agents use different referencing criteria, and some may consider your application if you can demonstrate that the rent is affordable.
However, you should be prepared for the possibility that a landlord may ask for additional security, such as a guarantor or rent in advance, depending on their policies and the circumstances.
Can You Rent a New Property During an IVA?
Yes, you can potentially move into a new rented property while you are in an IVA.
The main difficulty is likely to be passing the landlord's or letting agent's affordability and referencing checks.
Before applying for a property, it is sensible to ask the letting agent what their criteria are. This can avoid paying application or referencing costs only to discover that an IVA automatically prevents you from passing their checks.
If you are open with the letting agent about your circumstances where appropriate, they may be able to explain what alternatives are available if you do not meet their standard referencing criteria.
Will an IVA Affect Your Rental Deposit?
An IVA does not automatically prevent you from paying a rental deposit.
However, you will need to make sure that any deposit and other moving costs are affordable within your IVA budget.
If you are considering moving home, discuss the proposed change in rent and any associated costs with your Insolvency Practitioner before making significant financial commitments.
In England, the rules governing tenancy deposits and other upfront rental costs depend on the type of tenancy and circumstances. You should also make sure you understand the current rental rules before signing a new agreement.
Can You Pass a Landlord's Reference Check With an IVA?
It is possible, but there is no guarantee.
A landlord or letting agent may look at several factors when deciding whether to accept a tenant. These can include your income, affordability, credit history and previous rental history.
An IVA can appear as a negative factor on your credit file, but the final decision is generally made according to the landlord's or agent's own criteria.
If you are refused because of your credit history, you may be able to find another landlord with different referencing requirements. A guarantor may also be acceptable in some circumstances.
Can You Move House During an IVA?
Yes, it can be possible to move house while you are in an IVA.
However, you should tell your Insolvency Practitioner about a significant change in your housing costs. Your IVA is based on your financial circumstances, including your income and reasonable household expenditure.
If your rent increases substantially, this could affect the amount of disposable income available for your IVA payments. Your Insolvency Practitioner will need to consider your circumstances and the terms of your individual arrangement.
Equally, if your housing costs fall, your disposable income could increase and this may need to be taken into account during your IVA review.
For more information about the wider implications of an IVA, see our guide to the pros and cons of an IVA.
What If You Cannot Rent Because of Your IVA?
If you are struggling to find a landlord who will accept you because of your IVA, do not assume that you have no options.
Different landlords and letting agents use different referencing policies. You may be able to find a property where the landlord is prepared to consider your application despite the IVA.
Depending on the circumstances, a landlord may also accept additional security, such as a suitable guarantor or another arrangement that gives them confidence that the rent will be paid.
If you are considering an IVA and you currently rent your home, it is worth discussing the potential impact on your housing situation before entering into the arrangement.
Does an IVA Make Renting Impossible?
No. An IVA can make renting more difficult, but it does not automatically prevent you from renting a property.
The most important things to consider are whether you can afford the rent, whether the landlord's referencing criteria allow tenants with an IVA and whether you have a suitable alternative if you fail the standard credit check.
If you are already renting, the fact that you enter an IVA does not normally mean you have to leave your existing home. Your priority should be to maintain your rent payments and comply with the terms of your tenancy and IVA.
What Should You Do Before Starting an IVA If You Rent?
If you rent your home and are considering an IVA, it is important to look at your housing position before committing to the arrangement.
Consider:
- Whether your current rent is affordable.
- Whether you are likely to need to move during the IVA.
- Whether you have any existing rent arrears.
- Whether your tenancy is likely to continue for the foreseeable future.
- How a future rental application could be affected by the IVA.
- Whether you have a guarantor or other options if you need to rent another property.
An IVA is a legally binding agreement, so it is important to understand the wider consequences before entering into one. You can read more about how IVAs work before making a decision.
Frequently Asked Questions
Sources and Further Information
For official information about IVAs and the Individual Insolvency Register, see the GOV.UK guidance on Individual Voluntary Arrangements and the Individual Insolvency Register.
You can also read our guides to what an IVA is, how IVAs work and the pros and cons of an IVA.
