Hi Op
Your Friend sounds like entilted Arsehole !
If this Nasty Talk isn't Just shit stirring stuff
And is definately Gossip from your so called friend.
(Stop making excuses for his Crap behavior towards you, for e.g you saying its mental health struggles, has created this, (he knows what he doing, he just couldnt Care less)about hurting, you if this true,he has been Slagging you off,right,left,centre,
Mental healthh struggles is not a a valid excuse to shit on someone from a great big height
I would this Nasty Attitude as a sign that he has for far tooo Looong outstayed his welcome at your house and a a sign of his true Colours of his nature revealing himself to be, he is taking you for granted(taking the piss Cause that is his personality type flaws.
You obviously need to kick him to the kerb by acting according give him a week or two weeks notice treat him like a lodger,in a business like Assertive way, saying you expect him to do all his own washing,cooking for himself paying contributing to paying towards the household.
Also any headwork Toxic Dramas to him moving out Don't put with any Crap,even to the extant you might have to have a straight talking friend for support to carry this through..
Please Ditch this friend A.s.a.p.!
Don't have anything to do with them.
This friendship that was once good,has changed to Toxic co dependancy in platonic way.
(Why do you feel such a need to rescue them constantly??
Improve your self esteem.!!!
Even explore going into some kind of a therapy that would be beneficial to overcome low cofindence issues you have got,where they have come from etc.!!!???
Focus on much more postive better friends, people in your life.
Put in boundaries to protect yourself emotionally from people who are negative.!
Know to spot,Avoid/deal with negative people etc..
Take care


x