The problem landlords need to understand
There is a significant issue within the current legal framework which may expose landlords to substantial financial losses.
If a tenant enters a formal debt protection scheme known as “Breathing Space”, landlords may be prevented from pursuing enforcement action relating to rent arrears.
This restriction can apply even where significant arrears have accumulated.
Real example from a PIMS case
PIMS recently assisted a landlord who had successfully obtained a possession order for rent arrears and secured a bailiff eviction date.
Shortly before eviction, the tenant’s solicitor obtained an injunction citing the Breathing Space legislation.
The possession enforcement was suspended even though the tenant owed more than £14,000 in rent arrears and had not made payment for approximately 20 months.
This illustrates how the scheme can interrupt enforcement action even at a very late stage in the possession process.
The interaction with eviction law
Where a tenant enters Breathing Space and includes rent arrears within the scheme:
- Landlords must pause enforcement action relating to the arrears.
- Court action connected to those arrears must stop during the Breathing Space period.
- A Section 8 Notice based on rent arrears grounds (Grounds 8, 10 and 11) cannot be issued during the protection period.
However possession action may still be possible using other grounds where appropriate.
Types of Breathing Space protection
Standard Breathing Space
This protection is available to individuals with problem debt.
It provides legal protection from most creditor enforcement for up to 60 days.
During this period creditors must pause enforcement activity and most interest or charges are frozen.
Mental Health Crisis Breathing Space
This enhanced protection applies where a debtor is receiving recognised mental health crisis treatment.
The protection lasts for the duration of the treatment plus an additional 30 days.
This means the protection period can last significantly longer than the standard 60 day scheme.
How landlords are notified
When a tenant enters the Breathing Space scheme and includes rent arrears within the application, landlords or their agents will be formally notified by the Insolvency Service.
Once notified, the landlord must cease all enforcement action relating to the qualifying debt until the Breathing Space period ends.
If a tenant claims they are protected by Breathing Space but the landlord has not received formal notification, landlords should request confirmation before halting action.
Important warning for landlords
If a landlord continues enforcement action after formal Breathing Space notification has been issued, the tenant may argue that the landlord has breached the protections and could potentially raise a counterclaim.
For this reason landlords must respond carefully to official Breathing Space notifications.
PIMS guidance for landlords
Landlords should always assess whether alternative possession grounds may apply when rent arrears enforcement becomes restricted.
Understanding the interaction between debt protection legislation and eviction law is now a critical part of tenancy management.
PIMS members can access practical guidance and documentation including the PIMS pre-completed Section 8 Notice guidance.
Further government guidance
Full government guidance on the Debt Respite Scheme (Breathing Space) can be found here:
Debt Respite Scheme (Breathing Space) Guidance for Creditors
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