Agents back a ‘pause’ chasing arrears of mentally ill tenants

Propertymark’s support for a proposal under the Bankruptcy and Diligence (Scotland) Act 2024 to temporarily pause debt recovery actions for tenants experiencing acute mental health crises. This “breathing space” would prevent creditors from pursuing debts, including rent arrears, during the protected period. Interest and fees on debts would also be paused.

Debtors must meet strict criteria and provide certification from a medical or mental health professional to qualify. Ongoing liabilities, like current rent, must still be paid. While landlords could still issue notices or seek repossession, pre-action protocols and tribunal reviews would ensure fairness and take tenants’ health crises into account.

Propertymark supports balancing tenant respite with landlords’ need to address arrears, advocating clear guidance for landlords and agents to handle such cases compassionately.