Renters' Rights Act 2025, Phase 1 commencement
Transition readiness pack

England and Wales · Debt Respite Scheme (SI 2020/1311) · In Force 4 May 2021 · Standard Breathing Space 60 Days · Mental Health Crisis Moratorium (No Maximum Duration) · Landlord Cannot Pursue Arrears During Moratorium · Non-Arrears Grounds Still Available · Application to Cancel

Breathing Space Debt — Landlord Guide to the Debt Respite Scheme 2026

Debt Respite Scheme (Breathing Space) landlord guide 2026: SI 2020/1311 in force 4 May 2021; standard breathing space moratorium 60 days; mental health crisis moratorium lasts duration of NHS mental health crisis treatment plus 30 days — no maximum duration; during moratorium landlord cannot demand or pursue rent arrears, serve Section 8 on arrears grounds (8, 8a, 10, 11), charge interest or fees on the debt, or take enforcement action; landlord CAN serve Section 8 on non-arrears grounds (Ground 14 ASB; Ground 12 covenant breach; Ground 1 own occupation); landlord notified via Insolvency Service breathing space portal; landlord (as creditor) can apply to cancel breathing space on grounds of unfair prejudice; post-moratorium recovery: all arrears recoverable; interaction with Universal Credit direct payments.

11 min readUpdated 6 June 2026Last reviewed: 17 May 2026breathing-spacedebt-respite-schemerent-arrearssection-8

What breathing space does — moratorium on landlord action

During breathing space the landlord cannot: demand or pursue rent arrears; send debt collection letters; serve Section 8 on arrears grounds (8, 8a, 10, 11) — any such notice is void; charge interest, fees, or penalties on the arrears debt; or take enforcement action (bailiffs; enforcement of CCJs). Existing court proceedings on arrears grounds are stayed for the duration. The moratorium applies to arrears accrued before and during the breathing space period.

What the landlord can still do during breathing space

The landlord CAN serve Section 8 on non-arrears grounds (Ground 14 anti-social behaviour; Ground 12 covenant breach; Ground 1 own occupation) during breathing space. Current rent continues to fall due — the tenant remains obligated to pay. New arrears accruing during the moratorium are recoverable after it ends. Property maintenance and inspection obligations continue. The landlord can apply to the Insolvency Service to cancel breathing space on grounds of unfair prejudice.

Mental health crisis moratorium — key differences

A mental health crisis moratorium lasts the duration of NHS mental health crisis treatment plus 30 days — no maximum. Only one available (unlike standard; no second moratorium). Reviewed by a nominated mental health professional at least every 12 months. Landlord can apply for review to verify ongoing treatment but grounds for cancellation are more limited than for standard breathing space. Practical strategy: document all arrears; serve non-arrears grounds where available; engage social services for housing support options.

Post-moratorium recovery and interaction with UC direct payments

When breathing space ends, all enforcement rights are restored. Serve Section 8 arrears notice promptly. If arrears exceed 2 months, Ground 8 (mandatory) applies; if persistent arrears (3+ episodes in 36 months), Ground 8a (mandatory; not defeated by clearing arrears) also applies. Consider money judgment application alongside possession. Universal Credit: breathing space may affect willingness of local authority to divert UC housing cost elements to landlord during the moratorium — resume alternative payment arrangement request after moratorium ends.

Frequently asked questions

Can I serve a Section 8 notice when a tenant is in breathing space?+

You can serve Section 8 on non-arrears grounds (Ground 14 ASB; Ground 12 covenant breach; Ground 1 own occupation) during breathing space. You cannot serve Section 8 relying on Grounds 8, 8a, 10, or 11 during the moratorium — such a notice is void. Wait until the moratorium ends before serving an arrears-based Section 8.

How long does a mental health crisis moratorium last?+

For the duration of the NHS mental health crisis treatment plus a further 30 days — with no maximum duration. If treatment lasts 6 months, the moratorium lasts approximately 7 months. The landlord is notified via the Insolvency Service portal and can apply for periodic review to confirm ongoing treatment.

Templates recommended in this guide

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