Some Louth council tenants owe as much as €59,000 as rent arrears crisis deepens

By Olivia Ryan, The Drogheda Independent

Louth social housing tenants owe up to €59,000 in rent arrears in some cases, a local councillor revealed.

Ongoing concerns about the amount of rent not paid by local authority tenants was raised at the December meeting of Louth County Council.

Cllr. Marianne Butler said the rent owed in Louth “got a special mention in the Local Government Auditors report, where there were ten accounts listed ranging from €20,000 up to €59,000.”

She asked if the council had a plan “to help people deal with that significant amount of arrears?”

"How does this happen? When someone gets to that stage.. we really need to be pushing people towards MABS (Money Advice Budgeting Service) which would help the council to get some of that back.”

These ten accounts “probably count for a big chunk of the overall rent arrears,” said Cllr. Butler, as she pointed out that €4 million is now owed in total by tenants across Louth.

Ger Murphy, Director of Services, Louth County Council, told the meeting that a “significant amount of work” is being done to tackle the problems with rent arrears.

"It is a difficult area, as I have explained before. We are dealing sometimes with a particular set of social circumstances.”

He added that the council are adding to the resources of their team who deal with rent arrears.

The council also use a range of support services to assist tenants who have got into debt.

“In terms of the long term arrears, there are some protracted issues we are dealing with,” said Mr. Murphy.

He explained the council can use additional powers, including legal action, which they “do use when necessary.”

Cllr. Maeve Yore said the monthly housing report indicated 1,309 tenants in arrears, and asked why there were around 100 letters sent out.

"Should we not be sending more letters out, and making more phone calls and engagement overall?”

Cllr. Kevin Meenan said there were a range of issues which could lead people getting behind in paying their rent.

He added that although there are “some people who just won’t pay”, there are others whose circumstances have changed and may find they are suddenly in arrears because their pay has increased.

"If we start regular rent reviews it would smash a massive hole in the arrears owed,” he added.

The council’s Director of Service said letters sent to tenants who are in arrears may be issued at different stages in the process.

There are a number of steps the council engage in with tenants including warning letters.

Cllr. Robbie Nash said there was “public outcry in the last few weeks over the Fleadh debt,” and councillors were now debating the arrears owed by tenants.

Louth County Council had confirmed last month that it was paying off the €1.3 million debt accrued from Drogheda hosting the Fleadh Cheoil na hÉireann in 2018 and 2019.

"The problem with not paying your rent is that there are no consequences,” said Cllr. Nash.

He said debt collectors had been used by some councils, which then affected the tenant’s credit rating.

"But it doesn’t affect your credit rating here, so at the minute there are people not bothering to pay their rent. It’s not fair to the thousands of people who are on the housing list who will pay their rent, it needs drastic action.”

He accepted that every case had particular circumstances attached, but asked if the council had reached out to other local authorities to gauge how the issue had been dealt with in other parts of the country.

Mr. Murphy told councillors: “Yes, there are a range of issues, but we are talking to other local authorities.”

"We do take significant action on a number of accounts, including those who won’t pay, and we can take stronger action, right down to a possession order.”

He stressed that the council are engaging extensively with tenants and are working to resolve rent arrears.

But, he warned “things may continue on the current trajectory” before a reduction is clearly seen in rent arrears owed.