Skip to main content
Shelter Logo
England

Breathing space debt moratorium and possession proceedings

Breathing space and mental health crisis moratoriums under the debt respite scheme prevent landlords and lenders from taking possession due to rent or mortgage arrears.

This content applies to England & Wales

Rent arrears

Landlords must not:[1]

  • demand payment of rent arrears included in the moratorium

  • charge interest on rent arrears during the breathing space

Permitted contact

Landlords can contact tenants regarding other matters, including access for repairs, current rent, permitted legal proceedings, complaints or queries raised by the tenant. [2]

Landlord notices

Landlords cannot serve notice on an assured tenant on rent arrears grounds.[3]

Landlords can serve notice:

  • for reasons not related to rent arrears

  • under section 21

Landlords also cannot serve other notices for rent arrears, for example on introductory, secure or regulated tenants. This is a prohibited step to collect a moratorium debt.[4]

Where there is no requirement for the notice to give grounds for possession, landlords can serve notices during the moratorium but must not contact debtors about rent arrears included in the moratorium.

Mortgage arrears

Lenders must not:[5]

  • demand the payment of mortgage arrears included in the moratorium

  • charge interest on the arrears

Mortgage lenders can still charge interest on the mortgage principal. The mortgage principal is the outstanding amount minus the arrears.

Permitted contact

Lenders can give notices and statements regarding the arrears if required to do so under the Consumer Credit Act 1974 or Financial Conduct Authority Handbook rules.[6]

Possession proceedings during a moratorium

Tenants and mortgage borrowers are protected from possession claims based on arrears included in the moratorium. Debtors are also protected from enforcement of an order for sale based on a charging order.[7]

Landlords and lenders must not:[8]

  • serve a notice in respect of tenancy

  • start a possession claim against a debtor relating to a moratorium debt

  • take steps to enforce a possession order regarding a moratorium debt

If the deadline to bring an action including possession proceedings falls either during the moratorium or within the period of 8 weeks from the end of the moratorium, the time limit is extended by 8 weeks from the end of the moratorium.[9]

On-going court proceedings

Landlords and lenders must notify the court if court proceedings are underway when a breathing space starts.[10] Any action they take against debtors contrary to the breathing space rules is void.[11]

The court must ensure that any proceedings to enforce an order concerning a moratorium debt do not progress during the moratorium period.[12] This includes carrying out an eviction.

The court can enter a judgment or order in conclusion of a possession claim during the moratorium.[13]

Proceedings include:[14]

  • holding a hearing

  • making or serving a warrant or writ

  • instructing an enforcement agent to serve an order, warrant, or judgment summons

Breathing space moratorium

If the proceedings are against a debtor in a standard breathing space, the court must adjourn until the next available date after the breathing space ends.[15]

Mental health crisis moratorium

If proceedings are against a debtor in a mental health breathing space the court must adjourn the matter generally with a review for directions six months after the moratorium start date.[16]

Permitted proceedings

An action or proceeding that is pending in a court or tribunal can continue until an order or judgment is made in conclusion of the action.[17] That includes making a possession order on a claim that was issued before the start of the moratorium.

The court can send notices or correspondence to a debtor in relation to an action or proceeding.[18]

The court could grant permission to continue legal proceedings if they consider it reasonable and not detrimental to the debtor.[19]

Eviction during the moratorium

The tenant or borrower must not be evicted on the basis of a moratorium debt during a breathing space or mental health crisis moratorium.[20]

The landlord or lender must notify the court if an eviction is due to take place.[21] The defendant or their representative could also contact the court, to make sure it is aware of the moratorium.

A tenant or borrower who is evicted for a moratorium debt while they are under the moratorium protections can apply to court for a warrant of restitution to be granted access to their home.[22] They could also be entitled to claim damages.

Last updated: 24 January 2023

Footnotes

  • [1]

    reg 7(6)-(7) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311

  • [2]

    reg 11 The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311

  • [3]

    reg 7(7)(j) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311

  • [4]

    no explicit provision exists in relation to these types of tenancies, but serving a notice on arrears grounds would be a step to collect a moratorium debt, prohibited by reg 7(7)(a) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [5]

    reg 7(6)-(7) and 7(9) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [6]

    reg 11(2)(b)(v) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [7]

    Lees v Kaye [2022] EWHC 1511 (QB).

  • [8]

    reg 7(6)-(7) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [9]

    reg 8(2) and 9(2) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [10]

    reg 10(1) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311; Practice Direction 70B Civil Procedure Rules.

  • [11]

    reg 7(12) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [12]

    reg 10(5) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [13]

    reg10(3) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [14]

    reg 10(6) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [15]

    para 3.3 Practice Direction 70B Civil Procedure Rules.

  • [16]

    paras 3.4 & 3.5 Practice Direction 70B Civil Procedure Rules.

  • [17]

    reg 10(3) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [18]

    reg 10(7) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [19]

    reg 7(5) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311

  • [20]

    reg 10(5) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [21]

    reg 10(1) The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 SI 2020/1311.

  • [22]

    Lees v Kaye [2022] EWHC 1151 (QB).