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