Managing Rent Arrear, and other costs

Location

This on-line course is designed to help you minimise the possibility of your tenant going into arrears and/or incurring other costs, and what you can do if these occur.

Note that there is no legal requirement to do this, as against Gas Check; Electric Check, etc, but it is best practice.

The process of eviction is mentioned in summary, but in no detail.

Note, this course refers to one tenant, and one landlord for ease. The principles apply to more than one of either.

Summary

• Matters to consider early on
• Essential checks
• Guarantors
• Rent guarantee insurance
• Rent in advance
• During the let
• Managing damage/loss
• Managing rent
• Breathing Space
• Taking action
• Sample letters

Start at the beginning

Sometimes, a landlord will take on a tenant without fully knowing who they are, and without carrying out a thorough check on them. All too often this is due to time constraints – i.e., insufficient time to check, and/or having a vacant property not earning any money.

This is very short-sighted; trying to save a (relatively) small amount of money at the start of a let can so easily lead to losing large sums at the end, with the associated stress.

Things to do BEFORE offering

Trust your instinct

A critical part of a landlords/agent’s armoury is their intuition, I call it gut instinct. I’ve only gone against it a couple of times, and both times it has cost me money and unnecessary grief.

This is obviously something you cannot teach but come with experience. If you feel uneasy about the person wanting to rent your property, don’t offer. If you don’t offer, strongly suggest you don’t give a reason, in case it is discriminatory – this can be difficult for agents wanting to retain the tenant on their books.

Essential checks

There are several things that are strongly recommended you carry out:

1. Meet them, where possible in person. You cannot form a view of that person if you don’t meet them.

There are occasions where it is not possible to meet in person – e.g., recent lockdowns/out of the country, etc. and you might have to arrange a video call. This is the second-best method, but much better than nothing.

2.  Get as many details as possible.

Using an application form is good for this – be aware if they don’t want to give you basic information.

National Insurance Number is always a good one to get, as they can be traced through that. See here for information on getting one - https://commonslibrary.parliament.uk/getting-a-national-insurance-number/

Note that any information taken and held are subject to data protection rules – see www.gov.uk/data-protection. You will need to have a Privacy Statement to give them

3.  Reference & Credit Check them.

It is better to get this done by a professional agency. They normally charge around £30 (ensure you check the rate), and it is probably the best £30 you will spend running your business.

1. It is better to get this done by a professional agency. They normally charge around £30 (ensure you check the rate), and it is probably the best £30 you will spend running your business.

   If you decide to do it yourself, ensure you cover: -

   1. Finance:

Look at money-in on a regular basis (income/benefits), and money-out on a regular basis (rent/food/utility bills, etc).

Look at the previous 3 to 6 months, easiest way is to see bank statements (ensure account number is redacted). If the tenant does on-line banking only, they can normally get a print-off showing everything required.

Do these figures in general balance (there might be occasions of high spend – Christmas/birthdays, etc), or are they always spending all their income on essentials?

If your proposed rent is higher than their current one, rework the figures using your rent.

b. Credit check:

There are online sites you can use to carry out credit checks on potential tenants. A credit check will confirm whether the tenant pays on time and if they have any County Court Judgements (CCJ)against them.

Even a CCJ might not preclude them. For example, a CCJ incurred as a result of a minor debt when they were young, and is now fully discharged (paid off) can actually be positive, it shows that person has learnt a valuable lesson, and is unlikely to do it again.

A history of missed payments, previous IVAs (individual voluntary arrangement) or payments to debt collection agencies can all be potential causes for concern.

You should exercise your own judgement based on each individual case. A person missing a couple of payments in the past or having a poor credit score doesn’t mean they’ll be a bad tenant – especially if they happened because of redundancy or economic downturn.

However, if someone has large outstanding priority debts like mortgage arrears or HMRC debt, they might be forced to pay those over their rent payments.

This is where a professional Referencing agency is highly experienced at understanding and interpreting the situation.

c. Employment:

Are they in regular, paid employment, or is it spasmodic – good some months bad the others? Irregular employment can easily lead to arrears.

Can they show proof that they have been in employment for at least 6 months, and preferably 12 months or more?

If asking for an employment reference, be sure to ask for the reference letter to be written on company headed paper or through an official company email address.

If you’re going to conduct the reference on the phone, you might want to call the company’s main switchboard and ask to speak to the person directly rather than using the number provided by the tenant

                  d. Proof of address:

To check the person’s current and previous addresses, here are the most commonly accepted proof of address documents:

1. Recent utility bill (excluding phone bill or insurance document)
2. Council tax bill issued for the current year
3. UK driving licence
4. Recent bank, credit card or building society statement
5. Previous tenancy agreement

                     e. Proof of identity:

Photo ID is the easiest way to prove the applicants are who they say they are. Asking for a driving licence or passport is the most common way to check someone’s identity. A driving licence is ideal because you can then confirm their address at the same time.

If the tenant doesn’t have photo ID, you’ll need to carefully consider whether the other reference checks you carry out are enough to prove the tenant’s eligibility.

Don’t forget you will also have to conduct a Right to Rent Check if you are going to offer. You may want to do this now, or later.

            f. Previous landlord reference:

If the tenant has previously lived in rental properties, references from their previous landlords can be invaluable when it comes to deciding whether you want to offer them a tenancy.

It’s also a good opportunity to identity any gaps in the applicant’s rental history or in the landlord contact details they provide. With that being said, don’t rush to judgement about this as there can be perfectly legitimate reasons for these not being provided.

Top tip:

Check the landlord providing the reference is the same person who owns the property by looking at the Land Registry online - https://www.gov.uk/government/organisations/land-registry. If the applicant is using a guarantor, you can use the Land Registry to confirm the validity of the guarantor.

Wherever you can, check with the landlord before the current one. Their current landlord might be desperate to get them out and provide glowing references. It happens!

Other things to consider

Guarantors:

If the prospective tenant fails some of the above checks for legitimate reasons, consider asking for a guarantor.

Typically, young tenants, especially students will not have sufficient credit history, if any, to pass a credit check. Also, overseas tenants might struggle with a UK check; however, many professional agencies are able to check overseas people, just depends on the circumstances

If you do decide to get a Guarantor:

1. Credit-check them. No point in someone being a Guarantor if they are a ‘man of straw’.
2. Establish if they are a UK property owner, preferably in England as it is possible to get a charge on the property – with difficulty.
3. How long have they known the tenant; is there a relationship?
4. Explain carefully what the guarantor are taking on.
5. Get a Guarantor form they can sign to tie them legally to protecting their tenant.
6. Ascertain if there are any parts of the situation they are unwilling to guarantee. For example, several students sharing a house on one agreement will be jointly and severally liable for the rent (and other bills). It is likely all will need guarantors, most guarantors are only willing to guarantee their portion of the costs, not the whole rent, etc.

Rent Guarantee insurance:

Seriously consider taking out rent guarantee insurance. It gives you peace of mind. Any company offering this insurance will insist on a professional referencing being carried out, so ascertain this before you do your own checks, as they might be superfluous.

Costs

Note that none of the costs incurred by carrying out the above can be directly charged to the tenant. The Tenant Fee Act only allows tenants to be charged the following fees:

1. Rent
2. A holding or a security deposit
3. changes to the tenancy agreement requested by the tenant
4. early termination of the tenancy agreement requested by the tenant
5. Payment of bills such as gas, electricity, water, broadband, TV licence, and Council Tax
6. The loss of a key
7. A fee for the late payment of rent

and these can only be charged if stated in the tenancy agreement

So be aware that credit checks/insurance, etc cannot be charged to the tenant. However, damages/losses can be – more about that later.

It is not unknown for a tenant to offer to pay 6 months (or sometimes more) rent in advance.

Whilst this appears to be beneficial to the landlord it is likely to be putting off the potential of rent arrears for 6 months; if they won’t pass a credit check now, they probably won’t in 6 months’ time. Establish why they are making this offer, it could be that they have come from abroad, and their new employer is paying the first 6 months. Proof of their future earnings might persuade you they are a good risk. However, if you are taking students, it is a good idea to take the rent to coincide with the payment of their student loans, normally 3 times a year, around the start of each term.

During the let

If you carry out all the above with due diligence, it should minimise the possibility of rent arrears.

The critical things that must be done are:

1. to maintain a proper working relationship with the tenant – you don’t need to be best buddies
2. keep lines of communication open and keep a log of conversations/texts/WhatsApp /emails, etc.If a verbal conversation with a tenant is important, confirm it by email, i.e., ‘just to confirm our conversation of …’ that way you have evidence that might be required at a later date.

   Many landlords also keep two logs, one of any conversations, etc, with the tenant, the other for matters pertaining to the property, e.g., work to be carried out, etc.

3. keep an accurate record of rent payments.

So often rent arrears can be traced back to bad communication, and/or the relationship with the tenant breaking down. Even if you have taken out rent guarantee insurance, the insurance company will expect you to make effort to manage the let.

Managing damage/loss

This matter is quite simple, ensure

1. you have a good inventory, checked, and signed by all parties prior to the let commencing. Don’t hand over the keys until this is signed (along with all the other necessary paperwork).
2. Conduct regular mid term inspections. Normally, this would be quarterly during the first year; if satisfied everything is being looked after, and the tenant is willing to report problems as they arise, many landlords are happy to make the inspection 6-monthly. Some will even go to annual, once they are totally happy with the tenant, especially if they are reporting problems.
3. Keep the tenant informed of your plans to rectify faults, and to point out any damage/loss you believe they have caused.
4. Ensure any problems are dealt with as soon as possible; keep lines of communication open.

Managing rent

The initial steps are:

1. Preferably, get the tenant to set up a Standing Order (or Direct Debit, if you have the facilities)
2. Check you have received the expected rent, on the expected day. You might have to allow for Bank Holidays.
3. If you need to raise the rent, ensure you do it correctly. The recommended way is by means of a Section 13 notice (form 4 - https://www.gov.uk/guidance/assured-tenancy-forms#form-4)

If the rent is missing/wrong:

1. make a polite phone call the following working day. You would be surprised how many problems that simple call makes. It might be that the tenants’ salary was late being paid, and there were insufficient funds when the Standing Order tried to debit their account. The tenant might not even realise this has happened.

   Don’t make the call on the same day, it might be paid in before midnight.

2. Keep a written record of everything – many landlords keep a ‘tenant log’ of communications between them.
3. Be conscious of any extenuating circumstances that might affect their response. If you are aware they have just lost their job/had a disaster in their life – tread carefully. This is especially true if they have been adversely affected by the recent pandemic.
4. Always offer the tenant the opportunity to discuss, and possibly work out a re-payment schedule.
5. Be prepared to negotiate. You might be willing to take less rent for a time if they are a good tenant.
6. Any letters should be sent by first class post and get proof of postage (not registered post).

If the rent is still not forthcoming:

1. On the second day of the arrears advise the tenant (in writing) that they are in arrears, and that they need to discuss it with you
2. After 1 week (now 5 weeks in arrears), advise the tenant that rent is still not forthcoming – letter 1 in annex
3. After 2 weeks (now 6 weeks in arrears), write the first formal letter (letter 2 - Formal demand for overdue rent - Letter Before Action)
4. After a further 2 weeks (now 8 weeks/2 months in arrears), write the second formal letter (Rent arrears - Letter 3 - Formal demand for overdue rent - taking action)
5. After another 2 weeks (now 10 weeks in arrears), serve a notice, and advise the tenant (Rent arrears - letter 4 - after Notice Requiring Possession (Section 8))

Note that if you take your rent in advance, as is normal practice, they will be in arrears of 1 month as soon as the rent is due.

At all stages try to negotiate and see if an Income & Expenditure form will help. If the tenant agrees to a rent repayment schedule use letter ‘Rent arrears - following agreement on repayments’

Keep the Guarantor informed

At all stages keep the Guarantor informed, they can frequently apply ‘pressure’ you can’t, especially if they are parents.

In the appendices are examples of two letters that could be sent to the Guarantor; it is recommended that the initial contact is verbal, personal visit or phone call. This will help to stop raising tensions.

Important caveat

As from May 4^th, 2021, any debtor can apply for a Breathing Space, this includes tenants in debt.

Breathing Space Moratorium

The Breathing Space scheme can help people struggling with debt, including rent or mortgage arrears. It can freeze payment demands and legal action while they get free debt advice. It could also stop or delay eviction for rent arrears or mortgage repossession. It is sometimes called the debt respite scheme, and is valid for a maximum of 60 days, and could be revoked before then.

Under this scheme, all creditors (including landlords) must:

• stop asking for payments
• freeze interest, fees, and charges on the arrears
• pause any enforcement action through the courts, debt collectors or bailiffs

Breathing space is not a payment holiday. Debtors must make any payments that they can afford, especially rent. During the moratorium landlords cannot issue eviction proceedings for debt, e.g., a Section 8 notice/Money Claim. They can serve a Section 21 notice – however it is likely a court would halt proceedings if they were informed the debtor (tenant) was subject to an active Breathing Space Moratorium. There is currently (May 2022) consultation on allowing debtors to be granted up to 7 years to repay their debts, including rent arrears. This wouldn’t stop you serving a Section 8 notice.

Mental Health Breathing Space Moratorium

As above, but valid during the entire time it is in place, i.e., no 60 day limit; and the debtor is not liable for any future debt, whilst the Mental Health Breathing Space Moratorium is valid.

How to invoke a Breathing Space Moratorium

It can only be invoked by a qualified debt advisor, and all creditors must be advised. A debtor won't qualify for a Breathing Space if they have any of the following at the moment:

If their DRO, IVA or bankruptcy order has been discharged, they can still get breathing space.

Taking action

If you believe the arrears problems are not going to sorted out, you may decide to end the let, and/or seek to recover some, or all of the debt.

Recovering the debt

If all the above fails to recover any, or all of the monies owed, there are only three choices left:

1. Recover outstanding debts from the deposit, if one has been taken.
2. write off the debt. All too frequently landlords are willing to do this as they realise there is minimal likelihood of recovering any debt, and any cost associated with legal pursuance will probably be money badly spent.
3. Take legal action to attempt to recover part, or all the debt.

Using the deposit

If you have taken a deposit, and protected it correctly, it might be possible to recover some, or all, of the monies owed from the deposit. It must be recognised that the deposit is deemed to be the tenant’s money and permission must be obtained to take any/all. If the tenant won’t/can’t give permission, the matter will need to be taken to the deposit schemes arbitration mechanism. As with legal action (below) good evidence is required, or the request will fail.

Legal action

There are two ways of applying to court, making a Money Claim Online (MCOL) for a debt of less than £10,000, or applying to the court via Notice N1. Money claim online is cheaper to use than the county court money claims centre.

Whichever you use, ensure all the evidence is presented at the time of making the claim. The defendant (tenant) will be given the opportunity to rebuff/repudiate the claims, so your claim needs be as watertight as possible – hence the reason for keeping records all the way through, especially regarding conversations.

Using Money Claim On-Line

Application can be made direct to Money Claim Online (MCOL) - http://www.moneyclaim.gov.uk/web/mcol/welcome

It is important to take a note of the reference number when making a claim as everything is referenced by that.

Claims issued in MCOL must be:

• for a fixed amount of money
• for no more than one claimant (landlord) and against no more than 2 defendants
• served to a defendant or defendant(s) with an address in England or Wales

To make a claim in MCOL, you need:

• a valid credit or debit card to pay the court fees
• an address in the United Kingdom
• an email address
• regular access to a computer and the internet MCOL is the best option using the internet.

Using form N1

If it is difficult to use the internet, direct application to court using Form N1 can be used. Explanation of completing form N1 is in the Appendix.

Ending the let

Where arrears/damage is proving to be a problem, it is usual for the landlord to seek eviction of the tenant in addition to the requests for arrears/damage costs.

The full details of ending a let are in another CPD course, availabler online at the LLAS website but in summary:

Housing Act Tenancies

If the let is an Assured Shorthold Tenancy, it is known as a Housing Act Tenancy. The only ways of ceasing this is by serving:

1. a Section 21 notice, frequently called a ‘no fault’ notice. This is a two-month notice, whereby the landlord could apply for accelerated court proceedings if the tenant remains at the end of the notice, or
2. Section 8, where there is a ground (a fault). In this case the Ground would be non-payment of rent. The notice period is 2 weeks, and it would be necessary to apply to court if the tenant won’t vacate.

Non-Housing Act Tenancies (NHA) Also known as Common Law tenancies.

• A tenancy would be created as a NHA if the rent is over £100,000 a year, or where it is not the tenant’s main home.
• Company tenancies are also NHAs.
• A company let is when a company takes on a residential tenancy agreement as the tenant, rather than an individual.

The tenancy will be in the company name. A NHA is terminated by a simple Notice to Quit.

Summary of matters covered

• Matters to consider early on
• Essential checks
• Guarantors
• Rent guarantee insurance
• Rent in advance
• During the let
• Managing damage/loss
• Managing rent
• Breathing Space
• Taking action

Sample letters follow:

Appendices

Example letters

Letter 1 – informal request for overdue rent

I have checked our records and it would appear that you owed rent arrears of £«amount» as at «date»

I am sure this is only an oversight but would like to remind you that your Tenancy Agreement states your rent should be paid regularly in advance. If you have already made a payment to bring your account up to date, you can ignore this letter and continue making regular payments, otherwise please ensure your balance is cleared within 7 days of receiving this letter.

Should you be experiencing financial difficulties or wish to discuss your payments, please contact me immediately. If you have applied for Housing Benefit/Universal Credit and are waiting for the outcome, please contact them to obtain an update and let me know the result.

Letter 2 – Formal demand for overdue rent – Letter Before Action

I am writing to advise you that, as previously discussed with you, it appears from my records that your rent is currently overdue as follows:

Outstanding Rent for the period    : £xxx           Due: dd/mm/yyy  Attached is a schedule of the rent arrears.

I therefore kindly request that the outstanding balance be paid immediately and that you ensure that all future rental payments be made in full on the due date. I take this opportunity to advise you that unpaid arrears could result in court action being taken against you. If the arrears are not cleared, an application could be made for possession of the property, and for all monies due, for which you may become liable for legal costs.

Should you be experiencing financial difficulties or wish to discuss your payments, please contact me immediately. I have attached an Income/Expenditure form you might find useful. If you have applied for Housing Benefit/Universal Credit and are waiting for the outcome, please contact them to obtain an update and let me know the result.

If you would like to discuss this matter, please contact me urgently.

I can confirm that I would be agreeable to mediation and would consider any other system of Alternative Dispute Resolution (ADR) in order to avoid the need for this matter to be resolved by the courts. I would invite you to put forward any proposals in this regard.

In closing, I would draw your attention to paragraphs 15 and 16 of the Practice Direction which gives the courts the power to impose sanctions on the parties if they fail to comply with the direction including failing to respond to this letter before claim.

Thank you for your co-operation in this matter.

Letter 3 - Formal demand for overdue rent - taking action

I am writing to you to advise that due to your persistent rent arrears and your failure to commit to a repayment arrangement, I will now be preparing an application to the County Court to obtain a Possession Order.

As advised in previous letters (attached), this could result in Court Costs being added to your balance, a County Court Judgment and the loss of your home. However, I am offering you one last chance to prevent this application being sent to the court, by making the following payments:

• Current rent plus £«installment» every week/fortnight/month.
• Your first payment is due in the week commencing «date» and
• must be made regularly and on time until the balance is cleared to prevent this Court application being made.

If you have any queries with regard to this arrangement or wish to negotiate the amount, please contact me immediately to do so.

If you agree to comply with the above terms, please sign below and return one copy of this letter in the prepaid envelope provided before the date of your first payment. On receipt of this signed agreement, I will immediately put the court proceedings on hold as long as you maintain the payments. If I make an application to Court, it will be because you have not maintained the agreement.

letter 4 - after Notice Requiring Possession (Section 8)

As you will know, a Notice Requiring Possession (Section 8) was served on you on «date».

This notice becomes effective on «date» at which point I can consider applying to the County Court to obtain a Possession Order. This could result in Court Costs being added to your balance, a County Court Judgment and the loss of your home.

It is important you make immediate arrangements to clear this debt, either in a one-off payment or by manageable instalments, agreed by myself. I have enclosed an income and expenditure form for you to complete and return to me within 7 days of receiving this letter in the envelope provided. This is to assess how much you can realistically afford to pay on a regular basis.

If there is any outstanding query with regard to Housing Benefit, please call me on …………………….. immediately for an update and then let us know the outcome.

Rent arrears letter - following agreement on repayments

Following recent communication, I write to confirm the agreement you have made to clear your rent arrears.

You have agreed to pay your current rent plus £«installment» every week/fortnight/month off your arrears. Your first payment is due in the week commencing «date».

It is important your payments are made regularly and without fail as any breach could result in an application to the Court being made for a Possession Order. If your circumstances change, please ensure you contact me immediately to renegotiate your payments.

Letter 1 to Guarantor

Re: Non receipt of rent address of property

I refer to the Guarantor Agreement signed by yourself on date in respect of the tenancy at the above address undertaken by name(s) of tenant(s). Rent for the month of month of now overdue by N days. A total of £amount is now outstanding.

According to the terms of the Guarantor Agreement, you are required to pay any overdue rents and other obligations falling due. I would be grateful if you would remit to us the above amount within 14 days.

I have made the tenant aware of these arrears and have offered to discuss this matter with them.

Letter 2 to Guarantor

Re: Non receipt of rent address of property

I refer to the previous letter dated date of letter, and the Guarantor Agreement signed by yourself on date in respect of the tenancy at the above address undertaken by tenant.

We hereby notify you that the Guaranteed Persons are in default of rental payments under the Tenancy Agreement dated date. Please find enclosed copy letters and notices sent to the Guaranteed Persons today along with a statement of arrears. You will be aware that, as Guarantor, you are jointly and severally liable for the amount that is outstanding under the Tenancy Agreement totalling £ and that as such you will be included in any proceedings to recover the amount and/or possession of the Property.

Any unpaid arrears could result in court action being taken against both of you and the tenant, for which you may become liable for legal costs. If a County Court Judgement or Decree is entered against you for the rent, this could affect your credit rating.

I hope that this can be avoided by you making the above payment in full.  You may wish to take advice in relation to this letter and enclosed notice. There are details below of free advice services.

Please feel free to discuss this with me

Advice

National Debtline www.nationaldebtline.co.uk  Freephone Tel 0808 808 4000

Pay plan www.payplan.com  Freephone Tel 0800 280 2816

Citizens Advice online www.adviceguide.org.uk  or check local Yellow Pages or Thompson local directory for address and telephone number Community Legal Advice

Government Advice https://www.gov.uk/repossession/get-advice

Shelter www.shelter.org.uk   Tel: 0808 800 4444

www.communitylegaladvice.org.uk 

Financial Conduct Authority www.fca.org.uk

Form N1

What is a claim form?

A claim form is the document that must be completed by a claimant when they commence civil proceedings in the County Court or High Court. Normally, standard claim form N1 must be used – a copy of form N1 can be obtained from the Court or found on the judiciary’s website https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/10 15936/n1-eng.pdf

How do I complete form N1?

Preliminary matters

At the top of the form, the name of the Court location in which the proceedings are to be commenced should be stated. This will be in one of the County Court locations or a district registry of the High Court (or the High Court in London), depending on the type and value of the claim.

Most claims are made in the County Court. A claim should not be started in the High Court unless the value of the claim is more than £25,000 (or in the case of a personal injury claim valued at £50,000) or more. The type of claim may also determine where the proceedings should be commenced, for example, a defamation claim can only be commenced in the High Court unless the parties have agreed otherwise in writing.

The claim number and date of issue will be filled in by the Court when it issues the proceedings.

Names of the parties

The ‘claimant’ is the person (landlord) bringing the claim against the ‘defendant’ (tenant) and their names should be stated in full (including titles). Where one of the parties is an individual carrying on business in a name other than their own name, their trading names should also be stated.

Defendant’s name and address

The defendant’s name (your tenant) and address for the purposes of service of proceedings must be stated.

This may not be the same address as that set out above. For example, service may be intended to take place on the defendant’s solicitors, or debt advisor (outside of a Breathing Space Moratorium).

Brief details of the claim

A concise statement setting out the nature of the claim should be provided, specifying the remedy sought. If the claimant is only claiming a specified sum, and interest is claimed, this should be stated.

Value

If the claim is for money, the value of the claim is the amount claimed – not including any interest or legal costs.

Where a fixed sum of money is claimed, this figure should be stated. Where the claim is not for a specific amount, the claimant should give the court an idea of what they expect to recover, for instance, ‘not more than £5,000’; or ‘more than £5,000 but not more than £25,000’; or ‘more than £25,000’. If appropriate, the claimant can state something like ‘I cannot say how much I will recover’.

It is normal in the case of rent arrears to state ‘rent arrears are £x at date and are accruing at a rate of £n per day’. This would allow you to give a total amount at the time of a hearing

Amount and costs claimed

The ‘amount claimed’ must be set out at the bottom right hand side of the first page of form N1 as indicated. The ‘amount claimed’ is the principal sum claimed and any interest. If the amount claimed is not a fixed amount, ‘damages to be assessed’ should be entered. Any fees and costs also claimed must be included. This includes the Court fee which the claimant must pay on commencement of proceedings. If the claimant is successful, the defendant will normally be ordered to pay the amount of the Court fee back to the claimant.

Solicitors costs

Where proceedings are commenced by solicitors, the claimant can claim at least some of those legal costs back as ‘fixed costs’ if successful. The amount of fixed costs that can be claimed depends on the value of the claim.

Human rights issues

The claimant is required to confirm, by ticking the appropriate box on form N1, whether the claim includes any issues under the Human Rights Act 1998. Unless you are seeking damages for a breach of your human rights, the answer will be ‘no’.

The particulars of claim

The particulars of claim is an important part of the form N1 and should include a concise statement of the facts on which the claimant relies. The particulars of claim can be set out on form N1 itself or in a separate document (which must include the title of the proceedings, name of the Court, the claim number and the names of the parties).

If the claimant seeks aggravated, exemplary, or provisional damages this should be stated, and why.

This is not normally the case for rent arrears.

Any interest claimed must be stated, together with the basis on which interest is claimed. If the claim is for a specific amount of money the percentage rate at which interest is claimed should be stated, and the period for which it is claimed. The total amount of interest claimed to the date of calculation should be stated, along with the daily rate at which interest accrues after that date.

The statement of truth

The claimant (or their solicitor) is required to sign the ‘statement of truth’ confirming that the facts stated in the particulars of claim are true. If someone is signing on behalf of the claimant, or a firm or company, their position or office must be stated.

Address for service

The claimant must provide an address for service and receipt of payments. This may be the address of the claimant, or their solicitor. The address must include the postcode, unless the Court otherwise orders, and be within the UK.

If you require assistance with the fees.

Use form EX160 to apply for help with the fees. Ensure you apply at the same time as the submitting the N1 form

Venue Facilities

Directions