If you’re currently in an Individual Voluntary Arrangement (IVA), or considering one, you may be wondering how it could affect your ability to rent a home. The good news is that having an IVA does not stop you from renting, but there are some important things to understand before you start your search.
What Does an IVA Mean for Renting?
An IVA is a formal agreement that helps you manage and repay your debts over time. It’s recorded on your credit file for six years from the date it begins, which means it can be visible to landlords or letting agents if they carry out a credit check.
Although this can make renting slightly more challenging, it does not prevent you from renting altogether. Many people successfully rent properties while in an IVA.
Staying in Your Current Rental Property
If you already rent a property, entering into an IVA does not usually affect your tenancy.
As long as:
- You continue paying your rent on time, and
- You don’t include rent arrears in your IVA
Your landlord does not need to be informed and your tenancy can continue as normal. Your IVA is a private agreement and does not automatically notify your landlord.
Renting a New Property While in an IVA
You are legally allowed to rent a new property while in an IVA. However, some landlords and letting agents carry out credit checks as part of the application process, and your IVA may appear on your credit file.
This doesn’t mean you’ll be automatically refused. Many landlords will consider your full situation, including:
- Your current income
- Employment stability
- Rental history
- Ability to pay rent going forward
Being open and prepared can make a big difference.
Ways to Improve Your Chances of Renting
If you’re worried your IVA may affect your application, there are steps you can take to improve your chances:
Offer a Guarantor
A guarantor agrees to cover the rent if you’re unable to pay. This can significantly increase a landlord’s confidence in accepting your application.
Pay Rent in Advance
Some landlords may be willing to accept several months’ rent upfront instead of relying solely on a credit check.
Consider Joint Tenancies
Applying with a partner or friend who has a stronger credit history can make approval more likely.
Be Open and Honest
Being upfront about your situation and showing evidence of stable income and responsible budgeting can work in your favour.
Do You Need to Tell a Landlord About an IVA?
You are not legally required to tell a landlord about your IVA unless they ask directly or it is part of the referencing process. However, if a credit check is carried out, the IVA will usually be visible.
Honesty is often the best approach, especially if you can show that your finances are now stable and your rent is affordable.
What Happens After Your IVA Ends?
Once your IVA is completed, it will remain on your credit file for six years from the start date. After that, it will drop off automatically.
When the IVA is removed, renting generally becomes much easier, as landlords will no longer see evidence of past financial difficulty on your credit file.
Having an IVA doesn’t mean you can’t rent a home. While it may take a little more preparation and flexibility, many people successfully rent during and after an IVA.
If you’re unsure about your options or want help understanding how your IVA affects your housing situation, My Debt Plan can help guide you through your next steps with clear, practical advice.
