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Alarm Bells for landlords as debt payment scheme may exclude arrears

A trade body is warning that landlords may face a new challenge if, as expected, the government agrees a controversial expansion of the so-called Breathing Spaces experiment.

The initiative - formally called the Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 - was introduced shortly after the start of the pandemic. It pauses enforcement action on individuals from creditors including letting agents.

It freezes charges, fees and certain interest on qualifying debts for up to 60 days. 

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In these circumstances it means landlords must put on hold any action being taken in relation to rent arrears (including court action) for as long as the Breathing Space lasts; and a Section 8 notice cannot be issued for rent arrears (grounds 8,10 & 11) but can on any other available grounds.

Now, following a consultation, Propertymark says it expects the government to bring in Statutory Debt Repayment Plans from next year.

These would involve a certified debt advisor creating a repayment plan which on the one hand would provide reassurances that debts would be paid, but on the other trigger legal protections for the debtor.

Propertymark says the key factor - as yet uncertain from government statements - is whether the advanced breathing space agreements and Statutory Debt Repayment Plans would include rent arrears.

Timothy Douglas, head of policy and campaigns at Propertymark, says: “During these difficult times, it is essential that we find ways to support tenants who temporarily cannot afford to pay off debts including rent, while ensuring the solutions cannot be abused by those who have no intention of paying. 

“When tenants, landlords and agents communicate effectively to resolve issues, we can prevent unnecessary evictions. 

“The UK government needs to consider the risks associated with delaying housing debt payments, as this could impact the private rented sector and prevent people on plans to rent property.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Another reason to not rent to anyone without perfect credentials. The lower end of the PRS will cease to exist under all this pressure & where will the tenants who need social housing but can't get it go when the PRS will no longer accept them?

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    I heard it all now a Scheme to protect the Debtor, should it be called suffocating instead of breathing space.

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    Rather, it should be called theft.
    No other business model anywhere would allow crookery such as that.

     
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    Another day. More articles all pointing to sell.

    I think landlords should suffocate their tenants who don’t pay. That’s all the breathing space they need.

    More left wing levelling up sh!t from this government.

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    5* working tenants only, leave the rest to social housing where they belong

     
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    Exactly Andrew. The benefits people can head to the B&B's or the street now. I don't care. Sad to say but all this anti landlord stuff is ridiculous.

     
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    I don’t know why this government doesn’t just make all renting of houses and repayment of debts illegal. They are clearly doing everything they can to manoeuvre us to that situation, so they might as well save time and get on with it.

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    I think that. All these moaners and anti-landlord policy makers. I say just make renting housing illegal. Lets throw our tenants onto the street. More realistically this stupid Levelling Up department would make renting illegal, prohibit evictions and ban landlords from even accepting rent; let alone pursue arrears. And then introduce fines for renting even though you can't get people out of your property or receive any money.

     
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    How can rent arrears not be debt ?

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    Rent is supposed to be a priority payment so surely rent arrears should be a priority debt.
    How are other creditors going to track down debtors if they're homeless?

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    That's what's happens when you let the whole world in.

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    Oh dear, oh dear, even now will supply dwindling and an avalanche of selling landlords next year,
    they still don't get it. Punish landlords even more the answer?...Talk about making matters worse.

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    As said by all….. only Gold Star ⭐️ prospective tenants will find a home from now on, the government had better get building millions of social houses or we will have tent city’s like the 🇺🇸

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    We already have tents under the fly over in Norwich

     
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    Why are lenders protected they don’t own the Property and always guaranteed possession even if much isn’t owed.
    The owner is usually the largest stake holder with very little rights, his rights should be at least be on a par with lenders.

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    If I go into a shop and walk out without paying for a £20 item, the police can be called and I can be arrested and charged with shoplifting.
    But, if I fail to pay £700 monthly rent I am ok as the landlord cannot do anything until the debt is £1400.
    Who is responsible for this inequality rubbish?

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    Andrew, there’s tents and camping under the Fly over of, A 40 at Shepards Bush roundabout as well, at least they have a concrete roof.

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    And in 1945 we were victorious 🙄, how the mighty have fallen, England in the 21st century full of tents and 4 star migrant detention centres.

     
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    Simon,

    Yeah they all get to stay in the Holiday Inns and Jury's Inns etc. I don't usually go there. I have Holiday Inn Express etc. WTF is going on when people can arrive in a dingy and be given luxury accommodation indefinitely??? I wonder what menu they have. Full choice eating fillet steak every night no doubt.

     
  • Fery  Lavassani

    Simon, is not funny when asked who won the war, you proudly and rightly say us. When asked about the colonial past, you say oh its all in the past. I do not wish to go into politics, but I have lived here for the past 45 years. It was never like this. Until the Yanks and its so called allies, decided to look for "weapons of mass destruction". They are here because we went there. Most of these migrants/ Refugees work here pay tax and contribute to the pot. They are not in 5 star hotels receiving 5 star treatment. Most of them are the ones who we employed in Iraq and Afghanistan to assist us with our dirty work. So if anyone sleeps rough, its entirely their own fault. Pull your socks up, be prepared to work hard and you will just be fine.

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    The Russians won the war, but they couldn’t have done it without American war production, allied bombing and DDay. And none of that would have been forthcoming had we rolled over in 1940 and done a deal with Hitler.

     
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    I have no problems about the colonial past, Britain kept the world at peace for 200 years and invented the most fantastic things, improving billions of lives. Communism was a scam invented by a certain type of bankers to fetch down the empires to enrich them. This caused enormous bloodshed. Russian and China still have their empires, and treat the occupants like dirt

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    Try and keep to the subject .
    This is the Idiots in Government today trying to take away your livelihood. By slowly bleeding us dry Breathing Space has been in for some time now So what are the results. Is it Breathing Space, and no rent forever, or are Landlords getting their properties back after 60 Days. Why are they not releasing the facts.

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