Managing Rent Arrears Under the Renters’ Rights Act: A Landlord’s Guide

Rent arrears are the most common problem landlords face, and the rules for dealing with them changed on 1 May 2026. Section 21 has gone, so arrears now have to be resolved through agreement, a money claim, or a Section 8 possession claim on a rent arrears ground. The threshold for the main mandatory ground has also gone up, from two months’ rent to three.

This guide takes you from the first missed payment to court, in order: how to respond early, how to set up a repayment plan that actually holds, what to do when Universal Credit is involved, and which possession ground to use if nothing else works. It applies to private landlords in England.

Ground 8: serious arrears

✓ Mandatory: court must order possession if proved

3 months’ rent (13 weeks if weekly or fortnightly)

Owed at notice and at hearing

✗ Fails if tenant pays below the threshold before court

Ground 10: any arrears

✓ No minimum amount

Rent owed when you serve notice and start proceedings

✗ Discretionary: court decides if eviction is reasonable

Ground 11: persistent late payment

✓ Works even if arrears are cleared

Needs a clear history of repeated delays

✗ Discretionary: court decides if eviction is reasonable

All three grounds need 4 weeks’ notice on the prescribed Section 8 form. Source: GOV.UK grounds for possession guidance.

Step 1: Act in the first week

Most arrears that end in court started as a single missed payment that nobody talked about. The earlier you get in touch, the more likely the tenant is to engage and the smaller the gap you have to close.

• Day 1 to 3: a friendly text or call to check it is not a banking error. Note the date and what was said.
• Day 7: a short letter or email confirming the amount owed and asking the tenant to pay or contact you.
• Day 14: a formal arrears letter with a rent statement, an offer to agree a repayment plan, and details of free debt advice such as Citizens Advice.
• If there is a guarantor: tell them in writing as soon as the tenancy agreement allows. See what to do when a guarantor fails.

Find out why the rent was missed. A job loss, a benefit delay and a relationship breakdown each need a different response, and a tenant who feels heard is far more likely to keep paying something.

Step 2: Keep evidence from day one

If the case reaches court, a judge will want to see exactly what was due, what was paid and when, and what you did about it. Start these records the first time a payment is late, not when you decide to serve notice:

• a rent schedule showing each due date, amount due, amount paid, date paid and running balance;
• a contact log of every call, text, email and letter;
• copies of any repayment plan and whether each instalment was paid.

Our guide to keeping evidence of late rent includes a layout for the schedule and log. It matters most for Ground 11, which depends on a pattern of late payment.

Step 3: Agree a repayment plan that holds

A realistic plan recovers more money than a court order against someone with no money, and it keeps a tenant in the property. To make it stick:

• agree the current rent first, then a fixed extra amount each month towards the arrears;
• base the amount on what the tenant can actually afford; an unrealistic plan simply fails a month later;
• put it in writing, signed by both of you, with the start date and what happens if a payment is missed;
• review it after three months.

Do not charge interest or a late fee unless the tenancy agreement allows it and it stays within the Tenant Fees Act limits: interest on rent more than 14 days late, at no more than 3% above the Bank of England base rate.

Step 4: If the tenant receives Universal Credit

Two rules matter here. First, according to the GOV.UK possession guidance, arrears that exist only because the tenant has not yet received Universal Credit do not count towards the Ground 8 threshold. Second, you can ask for the housing element to be paid to you directly, and for a deduction towards the arrears, once arrears reach set levels.

Our guide to Universal Credit direct payments to landlords explains how to apply through the landlord portal and what evidence the DWP needs.

Step 5: Check for a Breathing Space

A tenant in debt may enter the government’s Debt Respite Scheme (Breathing Space). You will be notified if they do. A standard breathing space lasts up to 60 days, and during it you cannot:

• serve a possession notice on rent arrears grounds, or rely on one served before it started;
• start a money claim for the arrears;
• contact the tenant to chase the arrears, unless they ask to discuss them;
• add interest, fees or charges to the arrears.

Rent that falls due during the breathing space is still payable. If the tenant does not pay it, tell the debt adviser named in the notice.

Step 6: Choose the right possession ground

If talking and a repayment plan have failed, possession now runs only through Section 8. Most landlords with significant arrears use Ground 8 together with Grounds 10 and 11 on the same notice. If the arrears drop below the Ground 8 threshold before the hearing, the court can still consider the discretionary grounds.

Ground	Type	When it applies	Notice
Ground 8	Mandatory	3 months’ rent owed (13 weeks if weekly or fortnightly), both at notice and at the hearing	4 weeks
Ground 10	Discretionary	Some rent is owed	4 weeks
Ground 11	Discretionary	The tenant has repeatedly delayed paying rent	4 weeks

Before you serve notice, check that the deposit is protected and the prescribed information was given. The court will not make a possession order if it was not. Our guides to Section 8 grounds for possession and how to evict a tenant lawfully cover the notice form and court process.

Step 7: Recover the money

A possession order does not by itself get the arrears back. You can:

• ask the court for a money judgment for the arrears as part of the possession claim;
• claim from the deposit at the end of the tenancy, through the deposit scheme’s process;
• claim from a guarantor under the guarantee deed;
• bring a separate money claim against a former tenant. Before you do, follow the Pre-Action Protocol for Debt Claims: send a letter of claim with the information sheet and reply form, and give the tenant 30 days to respond.

Protecting yourself next time

• Reference properly: check income, employment and previous landlords. See our tenant referencing guide. You cannot refuse a tenant simply because they receive benefits, but you can check affordability.
• Use a guarantor where the tenant’s income is borderline.
• Consider rent guarantee insurance, and check the policy’s conditions, such as referencing standards and how quickly you must report arrears.
• Set rent due dates to match pay day where you can.

Common mistakes

• Waiting months before raising the arrears, then having no records.
• Relying on Ground 8 alone, so the claim fails if the tenant pays a lump sum just before the hearing.
• Counting Universal Credit delays towards the Ground 8 threshold.
• Changing the locks, removing belongings or cutting off utilities. These are illegal eviction and harassment, whatever the arrears.
• Serving notice with an unprotected deposit.

Written by The Landlords Portal Team and checked against GOV.UK guidance in November 2026. Applies to private tenancies in England. This is general information, not legal advice. For a possession claim, consider taking advice from a solicitor.

Frequently asked questions

How much rent must a tenant owe before I can evict for arrears?

For the mandatory Ground 8, at least 3 months’ rent, or 13 weeks if rent is paid weekly or fortnightly, both when you serve notice and at the hearing. Ground 10 can be used for any amount, but the court decides whether eviction is reasonable.

How much notice do I give for rent arrears?

Four weeks for Grounds 8, 10 and 11, on the prescribed Section 8 notice form.

Can I evict if the arrears are because of Universal Credit?

Arrears that arise only because Universal Credit has not yet been paid do not count towards the Ground 8 threshold. Apply for direct payment of the housing element instead.

Can I charge interest on late rent?

Only if the tenancy agreement allows it, only on rent more than 14 days late, and at no more than 3% above the Bank of England base rate.

What is a Breathing Space and how does it affect me?

It is a government debt respite scheme. For up to 60 days you cannot serve or rely on an arrears possession notice, start a money claim or add charges, though rent falling due during that time is still payable.