Residential landlords and the "Breathing Space" scheme

Private residential landlords are required to comply with certain legislation in relation to renting their properties, collection of rent, recovery of rent arrears and regaining possession of the property. A key scheme landlords will need to consider when addressing any of the above issues, is the Breathing Space scheme. It is important for landlords to understand the implications of this scheme in order to navigate their responsibilities accordingly.

What is the “Breathing Space” Scheme?

The breathing space is a temporary grace period introduced in 2020 by The Debt Respite Scheme to assist tenants who are struggling to manage debt. This scheme also aims to provide better support for tenants who may also be experiencing a mental health crisis.

The breathing space scheme allows qualifying tenants to apply for a temporary moratorium on certain debt recovery actions as well as possession proceedings resulting from rent arrears. A landlord is limited in the actions they can take against a tenant during this breathing space. 

There are two types of breathing space:

1. Standard Breathing Space – This is available to anyone in debt who seeks help from a qualified debt advisor. It lasts for up to 60 days and can only be in place once a year. i.e. it is not possible to implement multiple 60 day breathing spaces within a single year.
2. Mental Health Crisis Breathing Space – This breathing space lasts for the length of the tenant’s mental health treatment, however long this may be. There is also a minimum additional 30 days applicable following the end of this mental health treatment. Unlike the standard breathing space, there is no annual restriction.

Breathing Space, Rent and Eviction

Any rent due under the terms of the tenancy agreement remains due during the breathing space. However, a landlord cannot pursue legal action for any missed payments, during this time.

If possession proceedings have already commenced on the grounds of rent arrears, the Court must pause these proceedings until the breathing space ends.

During a breathing space, a landlord cannot serve a new Section 8 notice seeking possession solely on the grounds of rent arrears. However, a landlord can still pursue section 8 possession proceedings on other non-arrears-based grounds, e.g., property damage, breach of tenancy or anti-social behaviour to name a few.

If a landlord’s property is let under an Assured Shorthold Tenancy, it may be possible for a landlord to use the section 21 ‘no-fault’ possession process during a tenant’s breathing space. This is because this eviction process does not rely on arrears. There are plans to abolish this process, but with no set date in place, this process is still available for now. However, separate debt proceedings will need to be brought to recover any rent arrears once the breathing space ends.

If you are interested in hearing more about the section 8 or section 21 possession process, further information can be found at Residential Property Possession Actions - Clarkson Wright & Jakes Solicitors (cwj.co.uk). An update on the proposed abolishment of the section 21 notice can be found in our article published in May 2023 Renting laws are changing - Clarkson Wright & Jakes Solicitors (cwj.co.uk).

How Landlords Can Navigate the Breathing Space

Once a landlord has been notified that a tenant has been granted a breathing space, you can ask for proof of the breathing space from the debt adviser working with the tenant.

You cannot communicate with the tenant directly about rent arrears during this time, you can however, communicate with the tenant directly to discuss essential information about the property, such as repairs or safety hazards.

As you cannot discuss arrears with the tenant directly, you should engage with the tenant’s debt adviser instead. It may also be possible to discuss options for after the breathing space ends, such as payment plans or rent adjustments. Keep detailed records of all communications and the rent arrears.

If a landlord would like to limit the potential financial impact of a tenant requesting a breathing space, it may be worth considering opting for a rent guarantee insurance policy.

How CWJ Can Help?

If you are considering evicting a tenant or would like advice on resolving rent arrears, our team offer advice on a range of landlord and tenant issues, including recovery of rent arrears.

We are able to provide you with your options when seeking to evict a tenant, regain possession of your property and obtain rent arrears.

To speak with a member of our team, please contact Ife Kehinde-Taiwo at ife.kehinde-taiwo@cwj.co.uk or on 01689 887803.