Landlords Learn How to Navigate the Mental Health Breathing Space

The Debt Respite Scheme, introduced in 2020, introduced a so-called ‘breathing space’ for tenants trying to manage debt, including those experiencing a mental health crisis.

The scheme was designed to offer a lifeline to tenants struggling with debt and while the scheme can seem a challenge for landlords facing arrears, understanding its implications is key to navigating the situation effectively.

The respite scheme provides for two types of breathing space: standard or in a mental health crisis:

• A standard breathing space lasts for 60 days and is available no more than once a year to anyone in debt who seeks help from a qualified debt advisor.
• A mental health crisis breathing space lasts for the duration of the tenant’s treatment no matter how long that lasts, plus at least an additional 30 days, including no annual restriction.

The breathing space scheme allows the tenant to apply for a temporary halt on certain debt recovery actions, including eviction proceedings based on rent arrears.

For landlords, this means they are limited on the action they can take during a tenant’s breathing space.

• Rent collection: Rent payments are still due during the breathing space, but you cannot pursue legal action for missed payments during this time.
• Eviction proceedings are paused: If you’ve already initiated eviction proceedings based on rent arrears, the court must adjourn them until after the breathing space ends.
• New eviction notices for rent arrears are on hold: You cannot serve a Section 8 notice seeking possession solely due to rent arrears accrued during the breathing space.
• Other eviction notices remain an option: You can still pursue an eviction based on other grounds, such as property damage or anti-social behaviour.