Will Bartley, Landlord & Tenant Executive, looks at the new Breathing Space Legislation. He provides an overview of the Debt Respite Scheme and discusses how the scheme affects landlords.
What is the Debt Respite Scheme?
The Debt Respite Scheme (Breathing Space) is a free scheme which provides debtors with temporary legal protection from their creditors.
There are two different different types of Breathing Space under the Debt Respite Scheme: Standard Breathing Space and Mental Health Crisis Breathing Space.
Standard Breathing Space is available to anyone with ‘problem debt’, whereas Mental Health Crisis Breathing Space is only available to someone who is receiving mental health crisis treatment.
Tenants have to formally apply to the scheme, which is administered by the Insolvency Service, and landlords will receive formal notification if their tenant has qualified for the scheme.
Why has the Debt Respite Scheme been introduced?
The aim of the scheme is to give people who are experiencing rent arrears or other debt related issues a period to help them recover from their debt problems, without pressure. In this time, they can focus on gaining debt advice and setting up a solution to manage their debt.
When does the Debt Respite Scheme come into force?
The Debt Respite Scheme launched on 4th May 2021.
How long is the Breathing Space period?
The period of Breathing Space differs between the respective types, see the period for each below:
- For Standard Breathing Space, the time period is 60 days.
- For Mental Health Crisis Breathing Space, the time period is not set in stone. It lasts as long as the person’s mental health crisis treatment. This will be monitored and reasonable and at the discretion of the health professionals.
What does the Debt Respite Scheme protect the tenant from?
Standard Breathing Space stops landlords taking enforcement action, prevents the creditor (i.e. the landlord) from getting in contact with the tenant and freezes most debt charges; for the entire period of 60 days.
Mental Health Breathing Space holds many of the same protections as Standard Breathing Space, as well as some stronger protections. For further insight to the protections of Mental Health Breathing Space, please refer to the Gov UK website.
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