Yes, you can rent with an IVA. Your current tenancy isn’t affected as long as you can afford the rent (which is factored into your IVA budget). But if you’re looking for a new rental, landlords will see the IVA on credit checks, which can make it harder to pass referencing.
The best way to rent with an IVA is to use a guarantor, offer a larger deposit, or be upfront with the landlord about your situation and show proof of stable income.
Does an IVA Affect Your Current Tenancy?#
If you’re already renting and you enter an IVA, your tenancy shouldn’t be affected.
Your rent is an essential expense, so your Insolvency Practitioner (IP) will include it in your IVA budget. As long as you can afford your rent, you can continue living in your current property.
Your landlord won’t be automatically notified that you’ve entered an IVA. The IVA appears on the Individual Insolvency Register (a public register), but landlords don’t routinely check it unless they have a specific reason to.
However, there are two situations where your landlord might find out:
1. You include rent arrears in your IVA
If you owe rent arrears and include them in your IVA, your landlord becomes a creditor. Your IP will notify them that you’ve entered an IVA.
This could cause problems when your tenancy comes up for renewal. The landlord might refuse to renew because you’ve fallen behind on rent in the past.
If you have rent arrears, it’s usually better to keep them outside the IVA and arrange a separate payment plan with your landlord.
2. Your tenancy agreement has an insolvency clause
Some tenancy agreements include a clause that allows the landlord to evict you if you enter into an insolvency arrangement (like an IVA or bankruptcy).
These clauses are uncommon, but they do exist. Check your tenancy agreement before entering an IVA. If there’s an insolvency clause, talk to your IP about whether it’s enforceable.
In most cases, landlords can’t evict you just because you’re in an IVA — as long as you’re paying your rent on time.
Renting a New Property with an IVA#
This is where it gets harder. If you’re looking for a new rental while in an IVA, you’ll face challenges during the referencing process.
Most landlords and letting agents run credit checks on prospective tenants. An IVA will show up on your credit file, and it signals that you’ve had serious debt problems in the past.
Landlords want tenants who can reliably pay rent. An IVA suggests financial difficulty, which makes them nervous.
But it’s not impossible to rent with an IVA. You just need to approach it differently.
How to Rent with an IVA#
Here are the most effective strategies for securing a rental property while in an IVA:
Use a Guarantor#
A guarantor is someone (usually a family member or close friend) who agrees to pay your rent if you can’t.
Having a guarantor with a good credit rating gives landlords confidence that the rent will be paid, even if you run into financial difficulties.
The guarantor needs to:
- Have a stable income (usually at least 2.5x the monthly rent)
- Pass their own credit check
- Be a UK resident
- Sign a legally binding agreement
Most lettings agencies accept guarantors. If your guarantor has a solid credit history, the landlord is much more likely to overlook your IVA.
Offer a Larger Deposit#
Standard rental deposits are usually 5 weeks’ rent (in England under the Tenant Fees Act 2019). But you can offer more to reassure the landlord.
For example, if the rent is £800/month, the standard deposit would be around £920. You could offer £1,500 or £2,000 instead.
A larger deposit reduces the landlord’s financial risk. If you miss rent payments, they have more security to cover losses.
Not all landlords will accept deposits over the legal limit, but private landlords (rather than agencies) are often more flexible.
Be Upfront with the Landlord#
Honesty can work in your favour. If you’re dealing with a private landlord (not an agency), consider explaining your situation before they run the credit check.
Tell them:
- You’re in an IVA
- You’re managing your debt responsibly
- Your rent is included in your IVA budget, so it’s protected
- You have proof of stable income
Some landlords will appreciate your honesty and transparency. It shows you’re taking your finances seriously rather than hiding problems.
Letting agents are less flexible because they follow strict referencing criteria. But private landlords have more discretion.
Show Proof of Stable Income#
Provide evidence that you can afford the rent. This includes:
- Payslips from the last 3 months
- Bank statements showing regular income
- A letter from your employer confirming your salary
- A letter from your IP confirming your IVA is up to date
If you can demonstrate stable, regular income that covers the rent (even with your IVA payments), landlords are more likely to accept you.
Get a Reference from Your Current Landlord#
If you’ve been renting successfully for years and always paid on time, get a reference from your current or previous landlord.
A strong rental history can outweigh the negative impact of an IVA. It shows that you’re a reliable tenant even if you’ve had debt problems.
Look for No-Credit-Check Landlords#
Some landlords (usually private landlords with a single property) don’t run credit checks at all. They rely on references, proof of income, and gut instinct.
These landlords are harder to find, but they exist. You can:
- Search for private landlords on sites like OpenRent, SpareRoom, or Gumtree
- Avoid large lettings agencies, which always run credit checks
- Look for older landlords who own their property outright (they’re often less strict)
Be cautious of landlords who advertise “no credit checks” as a selling point — some are legitimate, but others might be renting substandard properties or operating illegally.
Will Your IP Allow You to Rent a New Property?#
Yes, but there are conditions.
Your IP needs to approve any major changes to your living expenses. If you’re moving to a new rental property that costs significantly more than your current rent, your IP might object.
For example:
- Your current rent: £600/month
- New rental: £900/month
That’s an extra £300/month in living costs, which means £300 less going toward your IVA payments. Your IP (and your creditors) won’t approve this unless there’s a valid reason (like moving closer to work or needing more space for a growing family).
If the new rent is similar to your current rent, your IP will usually approve it without issue.
You also need to consider:
- Deposit: You’ll need to save for a deposit (usually 5 weeks’ rent). Your IP might question where this money came from if it’s a large sum.
- Moving costs: Removal van, new furniture, etc. These aren’t usually covered in IVA budgets.
- First month’s rent in advance: Some landlords ask for the first month’s rent upfront in addition to the deposit.
Make sure you can afford these costs without affecting your IVA payments.
Does an IVA Appear on Tenant Referencing?#
Yes. Tenant referencing companies run credit checks as part of their process, and an IVA will appear on your credit file.
Your credit file shows:
- That you’re in an IVA
- The start date of the IVA
- The total debt amount
- Your payment history
Referencing companies use this information to assess whether you’re a financial risk. An IVA usually results in a failed reference unless you have a guarantor or the landlord agrees to overlook it.
How Long Does an IVA Affect Your Ability to Rent?#
An IVA stays on your credit file for 6 years from the start date. Even if you complete your IVA in 5 years, it remains visible for 6 years.
Once the 6 years are up, the IVA is removed from your credit file. At that point, your credit score begins to recover, and renting becomes much easier.
But during those 6 years, you’ll face challenges whenever you apply for a new rental. This is why keeping your current tenancy (if possible) is often the best option while you’re in an IVA.
Can You Rent Through a Lettings Agency with an IVA?#
It’s much harder. Lettings agencies use strict referencing criteria, and most will automatically reject applicants with an IVA on their credit file.
Agencies work for the landlord, and their job is to find low-risk tenants. An IVA is a red flag in their system.
Your options with agencies:
- Use a guarantor: This is your best chance. If your guarantor passes their checks, the agency might accept you.
- Offer a larger deposit: Some agencies will consider this, but many won’t because of regulatory limits on deposits.
- Look for specialist agencies: A few agencies specialise in helping tenants with poor credit. They charge higher fees, but they’re more flexible.
Private landlords are generally more flexible than agencies.
What If You’re Homeless or Facing Eviction?#
If you’re struggling to find a rental because of your IVA and you’re at risk of homelessness, contact your local council immediately.
Councils have a duty to help people who are homeless or threatened with homelessness. This includes people in IVAs.
You might be eligible for:
- Emergency accommodation: Temporary housing while you find a permanent place
- Housing benefit or Universal Credit housing element: Help with rent costs
- Advice on private renting: Some councils have schemes that help people with poor credit access private rentals
Don’t wait until you’re evicted. Get advice as early as possible.
You can also contact debt advice charities like StepChange or National Debtline. They can help you negotiate with your landlord or explore other housing options.
Renting After Your IVA Ends#
Once your IVA is complete and it’s been removed from your credit file (6 years from the start date), renting becomes much easier.
Your credit score will have recovered, and you’ll no longer have the IVA showing up on credit checks.
In the meantime, focus on:
- Keeping your current tenancy: It’s easier than trying to move
- Building a good rental history: Pay rent on time, be a reliable tenant
- Rebuilding your credit score: Use a credit-builder card or register on the electoral roll
By the time your IVA drops off your credit file, you should be in a much stronger position to rent anywhere you want.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Can my landlord evict me because I’m in an IVA?#
Not usually. As long as you’re paying your rent on time, your landlord can’t evict you just for being in an IVA. However, if your tenancy agreement has an insolvency clause, this might give them grounds for eviction — check your agreement and speak to your IP.
Do I have to tell my landlord I’m in an IVA?#
No, unless you’re including rent arrears in the IVA. If you’re not in arrears and your rent is up to date, your landlord won’t be notified. But if you’re applying for a new rental, the IVA will show up on credit checks.
Can I move to a cheaper rental to reduce my IVA payments?#
Maybe. If you move to a cheaper property, your living costs go down, which means more money available for IVA payments. Your IP might increase your monthly contribution. But if moving helps you manage your finances better, it could be worth it.
Will housing benefit cover my rent if I’m in an IVA?#
Yes. Being in an IVA doesn’t disqualify you from housing benefit or the housing element of Universal Credit. If you’re eligible based on your income and circumstances, you can still claim.
Can I use rent-to-own schemes if I’m in an IVA?#
Possibly, but check with your IP first. Rent-to-own schemes involve a commitment to buy the property eventually, which counts as taking on new credit. Your IVA terms usually restrict new credit without IP approval.
What if my guarantor refuses to help because of my IVA?#
Look for alternative solutions: offer a larger deposit, be upfront with private landlords, or search for no-credit-check rentals. If you can’t find a guarantor, renting will be harder but not impossible.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.