Rent arrears are the most common reason landlords in England seek possession. The Renters' Rights Act 2025 has changed the landscape significantly from 1 May 2026: Section 21 no-fault notices are abolished, the rent arrears ground thresholds have changed (Ground 8 now requires 3 months' arrears, not 2), and a new mandatory persistent arrears ground (Ground 8A) has been introduced. This guide walks through the full landlord action plan — from the first missed payment to court proceedings and debt recovery.
Ground 8 (mandatory arrears): threshold raised from 2 months to 3 months' arrears at notice date AND at hearing. Ground 8A (persistent arrears): new mandatory ground — 3+ months' arrears on 3+ separate occasions in the past 3 years. Clearing arrears does not defeat Ground 8A.
Step 1 — Early intervention (before formal action)
- Contact the tenant immediately: A missed payment may be an administrative error — send a friendly payment reminder on day 1
- Check Universal Credit: If the tenant receives UC, their housing cost element may be delayed during a new claim assessment period — request a managed payment directly to the landlord if arrears exceed 2 months
- Signpost support: Suggest the tenant contacts Citizen's Advice, the local authority housing team, or Shelter — debt counselling can resolve short-term arrears without possession proceedings
- Consider a formal repayment plan: A written repayment schedule (current rent + arrears instalment) prevents arrears escalating and is evidence of good faith if proceedings become necessary
- Document everything: Keep a timestamped record of all communications, rent ledger, and any repayment plan terms
Step 2 — Serving a Section 8 notice
If informal resolution fails, serve a Section 8 notice (Form 3A from 1 May 2026). The grounds for rent arrears are:
| Ground | Type | Threshold | Notice Period | Tenant clears arrears? |
|---|---|---|---|---|
| Ground 8 | Mandatory | 3+ months at notice AND at hearing | 4 weeks | Defeats the ground if cleared before hearing |
| Ground 8A | Mandatory | 3+ months on 3+ occasions in past 3 years | 4 weeks | Does NOT defeat this ground |
| Ground 10 | Discretionary | Any arrears at notice date | 4 weeks | May defeat — court has discretion |
| Ground 11 | Discretionary | Persistent late payment (even if always eventually paid) | 4 weeks | Court decides on all circumstances |
Always cite Grounds 8 and 10 (and 8A / 11 if applicable) on the same Form 3A. If the tenant clears the arrears before the hearing, Ground 8 falls — but Ground 10 and 11 remain available for the court's discretion.
Pre-notice compliance checklist
A Section 8 notice can be invalidated if you failed to serve prescribed documents at the start of the tenancy. Before serving, verify:
- Gas Safety Record served at the start of the tenancy (and annually renewed)
- EICR served at the start of the tenancy (valid, within 5 years)
- EPC served at the start of the tenancy (valid, E or above)
- How to Rent guide served at the start of the tenancy (correct version for the date of tenancy)
- Deposit protected within 30 days and Prescribed Information served on all tenants
- Renters' Rights Act Information Sheet served on all existing tenants (deadline 31 May 2026 for tenancies in force on 1 May 2026)
Step 3 — After the notice period: court proceedings
- If the tenant does not vacate after the notice expires, apply to the County Court for a possession order
- Accelerated Possession Procedure: No longer available from 1 May 2026 (it was tied to Section 21) — all possession claims must go through the standard or fast-track procedure
- Standard possession claim: Issue the claim at the County Court — the court will list a hearing date (typically 6–12 weeks after issue in 2026)
- At the hearing: for mandatory grounds (8, 8A), if proven, the court must grant the order. For discretionary grounds (10, 11), the court considers all circumstances
- If granted, the court will typically give 14 days to vacate (28 days in cases of hardship)
- Warrant for possession: If the tenant does not leave after the order, apply for a warrant and the County Court Bailiff (or High Court Enforcement Officer) will enforce eviction
Step 4 — Recovering the arrears after possession
- A possession order does not automatically create a money judgment for the arrears — apply for a money judgment at the same hearing
- With a money judgment you can: register a CCJ on the tenant's credit file, instruct an enforcement agent (bailiff), apply for an attachment of earnings order, or apply for a third-party debt order
- Use the deposit first — apply to the deposit protection scheme for deduction of arrears (and any damage) — note the scheme dispute process if the tenant contests
- If the arrears exceed the deposit, pursue the balance via the money judgment
- Consider instructing a debt recovery agency for arrears over £500 — trace and collect services are available on a no-win-no-fee basis
Universal Credit: managed payments to landlord
If the tenant receives Universal Credit and falls into arrears, you can apply for an Alternative Payment Arrangement (managed payment direct to landlord):
- Apply to the DWP via the Landlord Portal (gov.uk/landlord-portal)
- Eligible when: arrears of 2 months or more, or the tenant is considered 'unlikely to pay rent' or is a 'vulnerable claimant'
- DWP may deduct up to 20% of the standard allowance for arrears repayment direct to the landlord
- Managed payment applies going forward — it does not immediately clear existing arrears, but prevents further escalation
- Where a managed payment is in place, a tenant who challenges a Section 8 notice on arrears grounds will face a harder argument — the payment trail shows the landlord took reasonable steps