Breathing Space and What It Means for You as a Landlord

The Breathing Space scheme started in May 2021 in England and Wales. It helps people who are having a hard time paying their debts. This includes rent.

During Breathing Space:

•  The person’s debts are put on hold.
•  No extra charges or interest can be added.
•  Creditors (like landlords) cannot chase the person for money.
•  The person can get help to sort out their money problems.

There are two types of Breathing Space:

1. Standard Breathing Space

• Lasts up to 60 days.
• For anyone in debt.

2. Mental Health Crisis Breathing Space

• For people getting mental health treatment.
• Lasts for as long as the treatment, plus 30 more days

How This Affects You (the Landlord)

You might get a letter saying your tenant is in Breathing Space. This means there are rules about what you can and can’t do.

You can’t:

• Ask the tenant for the rent they owe.
• Add extra charges or interest.
• Start or carry on court action about the debt

What you can do depends on what you’ve already done

If you gave your tenant a Section 8 Notice (for rent arrears):

If you gave your tenant a Section 21 Notice (no fault):

You can carry on. This is because a Section 21 is not about rent. You do not need to stop court action or wait.

How Will You Know If Your Tenant is in Breathing Space?

You will get a letter or email from the Insolvency Service.

It will tell you:

• When Breathing Space started.
• When it ends (if it’s a standard one).
• If there’s no end date, it may be a mental health Breathing Space.

What Should You Do Now?

• Stop chasing the tenant for rent.
• If you’re already in court, let the court know.
• Don’t contact the tenant about the money they owe.
• Think about whether a Section 21 might be better if you want the tenant to leave for another reason.

At Legal for Lettings, we are here to help you if your tenant is in a breathing space.

If you have any questions and would like to seek further advice, please get in touch at contact@legalforlettings.co.uk