As the festive season approaches, many tenants across Scotland will be feeling the financial strain. Increased spending on gifts, higher energy bills, food and seasonal income dips can lead to difficult choices, sometimes prioritising Christmas over monthly bills.
What would you choose not to pay to cover Christmas? For many tenants, it’s their rent. Social landlords and housing associations often run awareness and prevention campaigns across December in an effort to reduce arrears and protect tenancies.
These campaigns typically encourage tenants to make small early payments, contributing a little extra each week to help cover the Christmas period. Many also offer practical budgeting support, helping tenants stay focused on prioritising essential costs such as rent when pressures on household finances are at their highest. Money advice and income maximisation support is frequently made available too, with referrals to specialist organisations for those who need more tailored help.
Good practice within the sector also includes distinguishing between tenants who genuinely can’t pay and those who won’t, ensuring that support and enforcement can be targeted appropriately. Increasingly, landlords are turning to data-driven approaches, analysing trends to identify vulnerable households at an early stage. Clear and consistent debt policies, whether implemented more effectively or paired with affordable repayment terms, continue to play a crucial role in preventing arrears and safeguarding tenancies during the festive season.
Why landlords must act
Scotland’s social housing sector saw arrears reach a record £189.97 million in 2022–23, a 6.9% increase on the previous year. Local authority arrears have shown some improvement from pre-pandemic highs and now account for 8.6% of rent due, while Registered Social Landlords report 3.4% a reduction of 1.1% from the previous year with 2025 showing signs of further arrears decreases. Unlike social housing where the arrears are tracked by the Scottish Housing Regulator (SHR), there is no comprehensive national dataset for Private Rented Sector (PRS) arrears.
However, both sectors experience festive arrears spikes, but the consequences differ. Social tenants benefit from pre-action requirements and hardship support, while private tenants face stricter timelines and fewer safety nets. Seasonal pressures can quickly turn into costly vacancies and tribunal fees, if landlords fail to intervene early!
Eviction statistics underline the seriousness of the issue. In 2023–24, councils issued 16,640 eviction notices, with 561 tenancies terminated – 91% due to rent arrears. While social landlords often offer structured repayment plans and discretionary housing support, the private rented sector (PRS) operates under stricter timelines, face eviction if arrears persist for three consecutive months, with cases fast-tracked to the First-tier Tribunal.
Landlords: social v private
- Scenario 1: social housing provider
A housing association sees arrears spike in December. By offering flexible repayment plans and signposting tenants to discretionary housing payments, they prevent escalation and sustain tenancies. - Scenario 2: PRS landlord without intervention
A tenant falls behind in December. Without early engagement, arrears persist for three months, triggering tribunal action and costly vacancy periods.
Landlords call to action
To protect income landlords should:
- Engage early: Contact tenants before arrears escalate.
- Offer flexible repayment options: Short-term plans can prevent long-term losses.
- Signpost support: Direct tenants to Discretionary Housing Payments and budgeting advice.
- Plan for compliance: Review your rent strategy ahead of the Housing Act 2025 rent controls.
- Document everything: Keep clear records for tribunal cases and future rent reviews.
Conclusion
As seasonal pressures continue to affect tenants across Scotland, early engagement and supportive arrears management have never been more important. Landlords who adopt proactive, compassionate and well documented approaches can protect their income while sustaining tenancies and reducing the need for formal enforcement. With new regulations on the horizon and financial challenges unlikely to disappear, acting now will put landlords in the strongest position for the year ahead.
