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

What breathing space does — the moratorium on landlord action

During the breathing space moratorium, the Regulations impose specific prohibitions on creditor (landlord) action. These are strict legal prohibitions — any action taken in breach of breathing space is void:

• Prohibition on pursuing rent arrears: The landlord cannot contact the tenant to demand payment of the arrears debt, send debt collection letters, instruct a debt collection agency to contact the tenant, or take any steps to recover the rent arrears during the moratorium. This includes arrears that accrued before and during the breathing space period. The landlord cannot demand a lump sum payment to clear arrears, set up a direct debit for arrears repayment, or threaten legal action for arrears. Communication about the tenancy unrelated to the debt (maintenance requests, property inspections) is not prohibited
• Prohibition on serving Section 8 on arrears grounds: The landlord cannot serve a Section 8 notice relying on Grounds 8, 8a, 10, or 11 (rent arrears; persistent delay in paying rent) during the breathing space moratorium. A Section 8 notice served on arrears grounds during breathing space is void — it has no legal effect. If a Section 8 arrears notice was already served before breathing space began, proceedings based on it are stayed and cannot be pursued during the moratorium. Court hearings on arrears-based possession claims listed during the moratorium are stayed
• Prohibition on interest, fees, and penalties: The landlord cannot charge interest, late payment fees, or default charges on the rent arrears during the breathing space period. If the tenancy agreement provides for interest on late payment of rent, that interest cannot be charged during the moratorium. Contractual penalty clauses relating to late payment of rent are also unenforceable during the moratorium. The Regulations effectively freeze the arrears debt at the level it stood at when breathing space began — the capital amount of arrears continues to accrue for current rent falling due, but interest and charges on the existing arrears cannot be added
• Prohibition on enforcement action: The landlord cannot instruct bailiffs or enforcement agents to recover rent arrears, take steps to enforce a money judgment for rent arrears, or apply for a warrant of control against the tenant's goods for unpaid rent during breathing space. If a county court judgment (CCJ) for rent arrears was obtained before breathing space began, enforcement of that judgment is stayed for the duration of the moratorium. Landlords holding CCJs for rent arrears must check whether the debtor has entered breathing space before instructing enforcement agents

What the landlord CAN still do during breathing space

Breathing space restricts action on the arrears debt only. It does not prevent all landlord action — there are important things landlords can continue to do during the moratorium:

• Non-arrears Section 8 grounds remain available: Breathing space prohibits Section 8 notices on arrears grounds (8, 8a, 10, 11) but does not prevent the landlord serving a Section 8 notice relying on non-arrears grounds. Ground 14 (anti-social behaviour) can be served at any time regardless of breathing space. Ground 12 (breach of a covenant other than the obligation to pay rent — for example, pet without consent; subletting without consent; alterations without consent) can be served. Ground 1 (landlord requires the property as principal home) can be served. Landlords with multiple grounds should carefully consider which grounds are available and serve notices on the available non-arrears grounds during the moratorium
• Rent falling due during breathing space must still be paid: The tenant remains obligated to pay rent as it falls due during the moratorium — breathing space does not suspend the obligation to pay current rent. Rent that falls due and is not paid during the breathing space period itself becomes a new arrears debt. The landlord can note (but not actively pursue) this new debt — and the landlord can rely on the growing arrears once the moratorium ends. The accrual of further arrears during breathing space may strengthen a subsequent Section 8 arrears claim once the moratorium ends
• Property maintenance and inspections continue: The landlord's obligations to maintain the property and the tenant's rights of quiet enjoyment are unaffected by breathing space. Landlords must continue to carry out emergency repairs, respond to maintenance reports, and meet gas safety, electrical safety, and EPC obligations during the moratorium. Breathing space does not give the tenant a right to refuse property inspections that the tenancy agreement permits or that are otherwise lawful — though landlords must give the required notice
• Applying to cancel the breathing space: The landlord (as creditor) can apply to the Insolvency Service to cancel or modify the breathing space moratorium on the grounds that it unfairly prejudices the landlord's interests. The application is made via the breathing space portal. Grounds for cancellation include: the breathing space was entered on the basis of false or inaccurate information; a debt included in the moratorium is not a qualifying debt; the moratorium is being abused to avoid legitimate creditor action. The Insolvency Service reviews the application and can cancel the moratorium, remove the debt from the moratorium, or maintain the moratorium — there is no formal right of appeal to a court, but the creditor's application is considered on its merits

Mental health crisis moratorium — key differences for landlords

The mental health crisis moratorium is significantly different from the standard breathing space in duration and management. Landlords should understand these differences:

• No maximum duration: A standard breathing space lasts 60 days. A mental health crisis moratorium lasts for the duration of the NHS mental health crisis treatment plus a further 30 days — with no maximum duration. If the NHS mental health crisis treatment lasts 6 months, the moratorium lasts approximately 7 months. If treatment continues for a year, the moratorium continues for over a year. There is no cap on the duration of a mental health crisis moratorium. This creates a very significant practical challenge for landlords dealing with long-term arrears in this situation
• Who can enter a mental health crisis moratorium: Only a person who is receiving crisis, emergency, or acute mental health treatment from an NHS mental health team can enter a mental health crisis moratorium. The moratorium is administered by a nominated mental health professional (approved mental health professional or similar) who oversees the process and must review it at least every 12 months. A debtor can only have one mental health crisis moratorium — there is no limit on standard breathing spaces (but only one at a time), though a debtor must wait 12 months after a previous standard breathing space before entering another
• Landlord notification and review rights: The landlord is notified via the breathing space portal when a mental health crisis moratorium begins and when it ends. Landlords can apply to review the moratorium — specifically to check whether the person remains in mental health crisis treatment. If the treatment has ended, the moratorium should end (plus 30 days). Landlords should monitor the moratorium register and apply for review where they have reason to believe the crisis treatment has concluded. The landlord cannot apply to cancel a mental health crisis moratorium on the same grounds as a standard breathing space — the grounds are more limited
• Practical landlord strategy during a mental health crisis moratorium: A landlord in this situation faces a potentially lengthy moratorium with no ability to pursue arrears. Practical steps: (1) document all arrears accruing during the moratorium; (2) continue to serve notices on non-arrears grounds if other grounds arise (ASB; covenant breach); (3) seek specialist legal advice on the scope of the moratorium and available options; (4) engage social services or local authority housing teams where relevant — there may be options for the tenant to move to supported accommodation; (5) continue all maintenance and safety obligations — do not allow non-compliance to become an additional enforcement risk; (6) apply for periodic review of the moratorium via the portal to confirm ongoing mental health crisis treatment

How landlords are notified and practical steps to take

Landlords are notified when a tenant enters breathing space and must respond appropriately. Understanding the practical steps prevents inadvertent breach of the moratorium:

• Notification via the breathing space portal: When a tenant enters a standard or mental health crisis breathing space, the Insolvency Service registers the moratorium on the Breathing Space Register. Creditors (including landlords) are notified via email if they have registered on the creditor notification service, or the debtor's debt adviser must notify creditors directly. Landlords who are not registered on the notification service may receive a letter or may only become aware when they attempt to serve a Section 8 arrears notice or take enforcement action. Landlords should register with the Insolvency Service's creditor notification system to receive early notification
• Immediate steps on notification: On receiving notification of a breathing space: (1) immediately halt any Section 8 arrears notice preparation or service; (2) recall any debt collection letters or instructions issued to agents; (3) suspend any arrears demands or interest charges; (4) check whether any Section 8 arrears proceedings are listed at court — if so, contact the court and the tenant's representative to stay proceedings; (5) record the moratorium start date and the 60-day end date (or monitor for mental health crisis moratorium review dates); (6) continue to document arrears accruing during the moratorium for use in post-moratorium recovery action
• Post-moratorium recovery: When breathing space ends, the landlord's enforcement rights are fully restored. All arrears that accrued before and during the moratorium are recoverable. The landlord can immediately serve a Section 8 arrears notice on the applicable grounds — if arrears exceed 2 months, Ground 8 is available (mandatory) and if there have been 3 or more episodes of 2+ months arrears in 36 months, Ground 8a (persistent arrears) is also available as a mandatory ground. The landlord should issue the Section 8 notice promptly after the moratorium ends and proceed to court without delay. Consider also whether to obtain a money judgment for the arrears debt alongside or instead of possession proceedings
• Interaction with managed arrears processes: Where the landlord has agreed a payment plan with the tenant for rent arrears, a breathing space moratorium suspends the landlord's ability to enforce that payment plan — the tenant's payments under the plan become optional during the moratorium. The payment plan itself is not terminated by the moratorium. After the moratorium, the plan can continue — or the landlord can take enforcement action if the tenant has not resumed payments. Landlords managing arrears through Universal Credit direct payment or alternative payment arrangements should also be aware that breathing space may affect the local authority's willingness to divert UC housing cost elements to the landlord during the moratorium

Frequently asked questions