What is Breathing Space?

Breathing Space Moratorium and Mental Health Crisis Moratorium (England and Wales) Regulations 2020 was approved in October last year, and comes into effected on May 4th 2021. It basically enforces pausing of enforcement action on specific individuals from creditors, including Letting Agents with the effect of completely freezing charges, certain interest and fees on qualifying debts for up-to 60 days.  This can only happen once every 12 months.  With a longer-lasting moratorium for people receiving mental health treatment which can last for the length of a person’s mental health crisis treatment plus an additional 30 days and there is no limit to the amount of times an individual can enter a mental health crisis moratorium.

How and who applies for Breathing Space?

It’s important to know that breathing space cannot be started by a tenant – it can only be started by a debt advice provider authorised by the FCA (Financial Conduct Authority) to offer debt counselling, or a local authority who provides debt advice to residents.

Where can I find further information?

Guidance from ARLA for Property Agents is that letting agents, landlords and other creditors must pause enforcement actions when notified about a moratorium.  Agents should also conduct reasonable searches of their records for any additional debts owed to them by the debtor, as they may be eligible to be added to the moratorium.

Here at PIIM Property, we think this is a good law for genuine cases, and if you are not familiar with the latest laws affecting your property, then you should instruct a qualified Property Manager.