Contact us

Tag: breathing space

The Debt Respite Scheme: how does it affect tenants & landlords?

Posted on by prateek

Reside General Manager Toby Martin explains the impact of the government’s new debt relief initiative.

May was Mental Health Awareness Month, a very apt time for the government to launch the Debt Respite Scheme, also known as ‘Breathing Space’.

The purpose of the scheme is to provide a temporary period of respite from creditor action to help people in problem debt, for example a tenant in rent arrears, consider their options and engage with professional debt advice.

A Breathing Space moratorium will provide protections to those in problem debt by pausing enforcement action and freezing charges, fees and interest for up to 60 days. It is not a payment holiday and certain debts, including rent, are considered ‘ongoing liabilities’.

“Breathing Space will… encourage more people to seek advice, and when they do, there will be better protections in place to stop further harm and help recovery.”
Phil Andrew, CEO of StepChange Debt Charty

There is also an alternative way into the scheme for people receiving mental health crisis treatment. A mental health crisis moratorium has some stronger protections and lasts as long as a person’s mental health crisis treatment, plus 30 days.

A Breathing Space moratorium can only be accessed once every 12 months, but there is no limit to the number of times that an individual can enter a mental health crisis moratorium.

Anyone looking to start a Breathing Space must first seek advice from a debt service provider who is authorised by the FCA to offer debt counselling or a local authority. They will determine whether the individual qualifies for a Breathing Space and, if so, will contact any creditors to notify them of the moratorium.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside Review: May 2021

Posted on by prateek

General Manager Toby Martin rounds up the month of May, with news of new notice periods for landlords, the Queen’s Speech and more.

Reduced Landlord Notice Periods

As of the 1st of June 2021, notice periods for landlords have decreased from six to four months. The government temporarily increased notice periods to six months in August 2020, to provide tenants with greater security in their homes at the height of the pandemic. If the ‘roadmap’ out of lockdown restrictions goes according to plan, notice periods are expected to return to their pre-pandemic levels, i.e. 2 months, in October 2021.

Notice periods for tenants remain unaffected; a tenant can serve 1 month’s notice to bring their tenancy to an end.

You can read our detailed blog about this legislation here.

‘Breathing Space’ for Tenants

At the start of May, the Debt Respite Scheme came into force; a new initiative designed to give people in problem debt ‘breathing space’ to consider their options. The scheme, which will apply to tenants in rent arrears, permits any person who is in debt to seek a moratorium from an approved debt advice provider.

We will be posting a full blog on this subject in the coming weeks.

The Queen’s Speech

The Queen’s Speech at the start of May outlined the government’s priorities over the coming year, and contained a promise to ‘enhance the rights of those who rent‘. A White Paper has been promised in the autumn, which will address the government’s long-term promises to overhaul Section 21 evictions and introduce lifetime tenancy deposits for tenants.

You can read our detailed blog about the Queen’s Speech here.

Demand Continues to Outstrip Supply

In line with previous months, tenant demand significantly exceeded property supply during May 2021. At one point, the sheer weight of tenant demand saw our available properties drop to zero for the first time in many years; happily, this did not last for long as new properties swiftly became available. But for every property we place on the market, we are seeing multiple interested parties competing for it, which is in turn driving up rents across the board.

New applicant registrations increased by 22.3% compared to May 2020 which, despite being affected by lockdown restrictions, was a record-breaking month for Reside.

Our message to landlords is simple – it is a very good time to be bringing a rental property to the market.

New Recruit

We are delighted to bring you news of a new addition to the Reside team. Chris Gray has joined us in the role of Lettings Negotiator, and will be first point of contact for many of our clients. Chris brings a wealth of experience in sales and property, and knows Bath inside out.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside Review: April 2021

Posted on by prateek

Tenant Demand Reaches A New High

Despite rarely having more than four properties on the market at any one time, we let more properties during April 2021 than in Aprils 2014, 2015, 2016, 2017, 2018, 2019 and 2020. Tenant demand is outstripping supply to such an extent that we are receiving multiple offers on most properties within days, or in some cases hours, of the property being listed on the market.

New applicant registrations were up by 1.3% on March 2021, and by 137% compared to April 2020.

New electrical regulations apply to all landlords

Last year, new electrical safety regulations were introduced that required safety testing to be carried out for all new tenancies. On the 1st of April, this was extended to cover all existing tenancies as well – so if you are with a landlord with an occupied property, you must now have an electrical safety certificate in place. This must be renewed every five years. Where category C1 or C2 issues are diagnosed by the electrician, remedial works must be carried out within 28 days and the local authority informed.

Tenants must be given ‘Breathing Space’

The government’s new Debt Respite Scheme, or ‘Breathing Space’, came into force on the 4th of May and entitles people in problem debt (e.g. a tenant) to a temporary period of respite from a creditor (e.g. a landlord or letting agent).

A Breathing Space will pause most enforcement action, creditor contact, and interest and charges on a person’s qualifying debts, so that they can consider their options and engage with professional debt advice.

We will bring you a more detailed blog about this scheme in the coming weeks.

Important Dates in May

The Queen’s Speech on the 11th of May promises to be an important one for landlords and letting agents. It is widely expected that the Prime Minister will return to the Renters’ Reform Bill, bringing the future of Section 21 back into sharp focus, alongside lifetime deposits for tenants.

Temporary legislation permitting landlords and agents to carry out Right to Rent checks virtually will come to an end on the 17th of May. From that date, all Right to Rent checks must once again take place in person.  However, after successful lobbying by ARLA Propertymark, a recent revision to the regulations now means that landlords will now not have to redo the virtual checks that have been carried out during the pandemic.

Update: since publishing this blog, the government has announced a one month extension to virtual Right to Rent checks. In-person checks will now be mandatory again from the 20th of June.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.