Landlords Guide to Breathing Space: Debt Respite

The Debt Respite Scheme is a new initiative introduced by the UK government that provides debt relief to those who are struggling to manage their financial obligations. It offers two types of support: a standard breathing space and a mental health crisis breathing space.

What is the Debt Respite Scheme and how does it work?

A standard breathing space provides individuals with legal protection from creditor action for up to 60 days. During this time, they are able to work with a debt advisor to create a sustainable repayment plan. A mental health crisis breathing space offers additional protection for individuals receiving mental health crisis treatment, providing them with a longer breathing space period of up to 90 days.

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How Does the Debt Respite Scheme Affect Landlords?

As a landlord, it’s important to understand how the Debt Respite Scheme can impact your business. If your tenant enters into a breathing space, they will not be required to pay their debts during this time. This means that if they fall behind on rent, you will not be able to take legal action against them during the breathing space period.

It’s important to note that if your tenant is already in arrears at the time they enter into a breathing space, you will still be able to recover these arrears once the breathing space period has ended. However, you will not be able to take any legal action against them during the breathing space period for the arrears that existed prior to the breathing space.

How Can You Prepare for the Debt Respite Scheme?

As a landlord, it’s important to be prepared for the Debt Respite Scheme and understand how it may impact your business. Here are some steps you can take to prepare:

  1. Stay informed: Keep up-to-date with the latest developments and changes to the Debt Respite Scheme. This will help you to adapt your business practices and policies accordingly.
  2. Review your tenancy agreements: Make sure your tenancy agreements are up-to-date and include relevant clauses relating to the Debt Respite Scheme. This will help to protect your business interests and ensure you are able to recover any arrears once the breathing space period has ended.
  3. Work with a debt advisor: If you have tenants who are struggling with debt, encourage them to seek advice from a debt advisor. This can help them to create a sustainable repayment plan and avoid falling into further arrears.
  4. Consider landlord insurance: Landlord insurance can provide you with additional protection and peace of mind in the event that your tenant enters into a breathing space.

In conclusion, the Debt Respite Scheme is an important development for landlords to be aware of. By understanding how it works and taking steps to prepare, you can protect your business interests and ensure you are able to recover any arrears owed to you. At [Company Name], we are committed to providing expert guidance and support to help landlords navigate this complex landscape.

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Free Instant Valuation

See how much your property could get in rent.

Fee Saving Calculator

See how much you could save on property fees.

Yield calculator

Calculate your rental yield with our simple tool

Compliance checklist

Make sure your buy-to-let property remains legal.

Compliance Guide

Download your complete landlord compliance guideĀ 

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Sam has a wealth of experience across the private landlord and Build to Rent sectors. He has advised a wide range of clients across the whole of London on how to find great tenants, improve their assets and effectively market their properties for the best returns.

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