At Intercounty, we aim to keep all landlords up to date, and we work closely with many landlords in and around Stansted. You might have heard about the Breathing Space scheme before now, but if not, it is vital you inform yourself of this scheme, and the impact it might have on the lettings sector.
The scheme came into effect from Tuesday 4th May 2021, so it is applicable now.
Section 8 eviction notices must contain details of the “Breathing Space” debt scheme, set up by the Government. If your paperwork doesn’t contain this information, it will not comply with the law, and this could create problems for landlords.
Will landlords receive support in managing this scheme?
The reasoning behind the scheme is to provide people who suffer from problematic debt additional time to resolve their issues without making the problem worse. There will be protection from further interest and additional charges.
With the events of the past year or so, there is no denying many people have struggled, and faced many challenging financial matters. It is a positive sign that people in this situation will receive protection, and hopefully this will minimise the issues people face.
However, there is also a need for landlords to be protected. It is important that tenants receive assistance if they have problems in paying bills, but landlords also have bills to pay, and many are dependent on monthly rental income to pay these bills.
If you have a buy-to-let mortgage, there is a strong chance you need monthly rental fees to pay this mortgage, so you must be aware of how Breathing Space might affect you.
The Breathing Space scheme, with respect to the rental market, will provide tenants with problem debt the right to legal protection from creditors, for up to 60 days.
Many landlords and tenants will be affected by the scheme
The Treasury has provided an estimate that up to 700,000 people in England and Wales might be assisted by the scheme in the first year alone.
The scheme applies to the majority of debts accrued before or after the 4th of May date, and this includes rent arrears. If a tenant has made a successful application for Breathing Space, with rent arrears stated in the application, the Insolvency Service will contact the landlord.
Propertymark’s Mark Hayward commented, “The changes introduced are to allow those struggling financially to have a limited time in which to seek advice and formulate a plan to move forward. The scheme will have a large impact on the current processes followed by agents and landlords when taking action against rent arrears, and it is now hugely important that those dealing with rent debt are aware of the new scheme and the changes in working it will bring.”
For rental enquiries in Stansted, please feel free to call us on 01279 358809 or why not email us at email@example.com. With considerable experience in the local market, and free valuation services, we look forward to helping you move.