Two developments this week: Government defends Breathing Space scheme and ONS data casts doubt on rent-control policy

Two items published on 24 July 2026 may be of interest to agents managing residential lettings in England: the government's published defence of the Breathing Space scheme in response to landlord concerns, and Office for National Statistics data showing that rent increases have fallen below wage inflation—a development that may influence future policy debate on rent stabilisation.

Government defends Breathing Space scheme amid landlord concerns

The government published a response on 24 July 2026 to landlord concerns about the Breathing Space scheme, which were raised via Property118. The scheme offers two variants of protection for tenants (and other individuals) in financial difficulty:

• The standard Breathing Space pauses most enforcement action—including eviction proceedings—for up to 60 days.
• The Mental Health Breathing Space extends protection for the duration of crisis mental health treatment plus 30 days.

One suggested approach for letting agents is to review the government's published safeguards for landlords, which are summarised in the Property118 article dated 24 July 2026, and to verify the detail against official guidance before taking action. Agents may wish to confirm with their compliance team that all staff recognise when a tenant has entered Breathing Space (notification is typically sent by a debt advice provider) and understand that enforcement action must pause during the protected period.

A further step agents often choose to take is to check that case-management systems flag active Breathing Space protections, so that eviction proceedings are not inadvertently commenced or continued while protection is in force. Readers should verify the scheme rules, notification protocols, and any exemptions against the original government guidance and consult a solicitor for case-specific advice.

ONS data: rent inflation now below wage growth

Office for National Statistics data published on 24 July 2026 shows that rent increases are now lower than pay inflation. The figures have been cited as undermining recent calls for rent stabilisation measures, and they suggest that market pressures may be easing without the need for regulatory intervention.

Agents may wish to review the ONS rental-inflation data published on 24 July 2026 and compare the headline figures with rent-review outcomes in their own portfolios. One suggested approach is to note the gap between rent inflation and wage growth when advising landlords on market-rate renewals, particularly where landlords are weighing tenant retention against achievable uplifts in the current market.

The data may also be relevant to conversations about portfolio strategy over the next quarter. If rent growth continues to soften relative to earnings, agents may wish to consider how that trend affects landlord retention, tenant demand, and the likelihood of future rent-control legislation. The Negotiator article dated 24 July 2026 provides further commentary and context, and readers are encouraged to verify the ONS figures and their methodology via the official ONS release before relying on them in client advice.

Who is affected?

The Breathing Space guidance is relevant to all letting agents managing residential tenancies in England where a tenant has entered—or may enter—either the standard or Mental Health variant of the scheme. The ONS rent-inflation data is of interest to all letting agents and landlords monitoring rent-setting policy, market trends, and the regulatory outlook for the private rented sector.

Suggested next steps

Agents may wish to:

• Review the government's published response on Breathing Space (Property118, 24 July 2026) and cross-check the scheme rules and landlord safeguards against official government guidance on GOV.UK.
• Confirm that internal procedures and case-management systems flag active Breathing Space protections to prevent inadvertent enforcement action during the protected period.
• Review the ONS rental-inflation data (24 July 2026) and compare it with portfolio rent-review outcomes to inform landlord advice on market-rate renewals.
• Consider how the gap between rent inflation and wage growth may affect tenant-retention conversations and the policy outlook for rent stabilisation over the coming months.
• Note that WatchdogHQ is an information service, not legal advice, and readers should verify all details against the linked sources and consult a solicitor for case-specific guidance.

Important: This article is provided for information and awareness only. WatchdogHQ is not a legal-advice service and is not a solicitor. Readers must verify every detail against the official sources cited below before taking action, and should consult a solicitor for advice on specific cases or compliance questions.