Missing a rental payment is every landlord's alert signal. How you respond in the first few days and weeks determines whether you resolve the issue early or end up in county court six months later. The Renters' Rights Act 2025 has raised the stakes: with Section 21 gone, acting quickly and correctly on arrears grounds is essential.
This guide covers the full action plan in four steps: early intervention, serving a valid Section 8 notice, county court proceedings, and post-eviction debt recovery. It also covers Universal Credit managed payments — often the fastest route to stopping further arrears.
Step 1 — Early intervention
Act on day one of a missed payment. Early intervention resolves the majority of arrears cases without formal proceedings:
- Send a friendly payment reminder on the first day of non-payment — many missed payments are administrative errors (failed direct debits, bank changes)
- Contact the tenant by phone and in writing — establish whether the arrears are temporary (job loss, Universal Credit delay) or chronic
- If the tenant is on Universal Credit: housing cost element payments can be delayed by 5 weeks during a new claim assessment — request a managed payment direct to landlord if arrears reach 2 months
- Consider a formal written repayment plan: current rent + an instalment towards the arrears — keep it signed and documented
- Signpost free support: Citizens Advice, Shelter, and the local authority housing team can often resolve short-term arrears through emergency funds or debt advice
- Document every communication — timestamped messages, letter copies, and the rent ledger — as evidence for any future proceedings
Step 2 — Section 8 notice: which grounds to use?
If informal resolution fails, serve a Section 8 notice on Form 3A (the prescribed form from 1 May 2026). The rent arrears grounds are:
- Ground 8 (mandatory): Tenant is at least 3 months in arrears at the date the notice is served AND at the date of the possession hearing. Threshold raised from 2 months to 3 months under the Renters' Rights Act. If the tenant pays down arrears below 3 months before or at the hearing, Ground 8 falls.
- Ground 8A (mandatory — NEW): Tenant has been 3 or more months in arrears on 3 or more separate occasions within the preceding 3 years. This is a persistent arrears ground. Critically, clearing the arrears before the hearing does NOT defeat Ground 8A — the pattern of behaviour is the ground, not the current balance.
- Ground 10 (discretionary): Tenant is in arrears of any amount at the date the notice is served (does not require a 3-month threshold). The court has discretion — it will consider whether it is reasonable to make a possession order.
- Ground 11 (discretionary): Tenant has persistently delayed paying rent, even if no arrears are currently owed. Useful where a tenant always pays late but catches up before each hearing.
- Always plead Grounds 8, 10 (and 8A and 11 if applicable) on the same Form 3A — if Ground 8 fails (arrears paid down), Grounds 10 and 11 remain for the court's discretion.
Pre-notice compliance — check before you serve
A Section 8 notice can be set aside if you failed to serve prescribed documents at the start of the tenancy. Verify before serving:
- Gas Safety Record served at the start of the tenancy (and annually renewed) — must be a Gas Safe registered engineer
- EICR served at the start of the tenancy (valid, within 5 years)
- EPC served at the start of the tenancy (valid, E rating or above)
- How to Rent guide served at the start of the tenancy (correct version for the date of the tenancy)
- Deposit protected within 30 days and Prescribed Information served on all tenants
- Renters' Rights Act Information Sheet served on existing tenants (deadline 31 May 2026 for tenancies in force on 1 May 2026)
Step 3 — County court possession proceedings
If the tenant does not vacate after the notice period expires, apply to the County Court for a possession order:
- File a standard possession claim at the County Court — the accelerated procedure (tied to Section 21) is no longer available from 1 May 2026
- The court will list a hearing date — currently 6–12 weeks after issue in many courts
- At the hearing: for mandatory grounds (8, 8A), if the conditions are proven, the court must grant the possession order. For discretionary grounds (10, 11), the court weighs all circumstances
- If the possession order is granted, the court typically gives 14 days to vacate (up to 42 days in cases of exceptional hardship)
- If the tenant does not leave: apply for a warrant of possession — the County Court Bailiff (or High Court Enforcement Officer) will enforce the eviction
- Include a request for a money judgment for the arrears at the same hearing — this avoids a separate claim later
Step 4 — Recovering arrears after possession
A possession order evicts the tenant but does not automatically recover the debt. Use these routes:
- Apply the deposit first — submit a deduction claim to the deposit protection scheme for rent arrears and any damage
- If arrears exceed the deposit, enforce the money judgment: register a County Court Judgment (CCJ) on the tenant's credit file, instruct an enforcement agent, or apply for an attachment of earnings or third-party debt order
- Consider a debt recovery agency for arrears over £500 — trace and collect services operate on a no-win-no-fee basis in many cases
- Write off the balance as a property income tax deduction if irrecoverable — keep documentation of your recovery attempts for HMRC
- Update your referencing policy to catch persistent payment problems earlier — require more recent bank statements and/or run a credit check directly
Universal Credit managed payments — a practical tool
If the tenant receives Universal Credit, apply for a managed payment direct to landlord as soon as arrears reach 2 months:
- Apply via the DWP Landlord Portal at gov.uk/landlord-portal
- Eligible where: arrears of 2 months or more, or the tenant is vulnerable or unlikely to pay rent
- DWP deducts the housing cost element and pays it directly to the landlord — preventing further arrears from the housing component
- DWP may also deduct up to 20% of the standard allowance as an arrears repayment direct to the landlord
- A managed payment is evidence of good faith if the tenant challenges the Section 8 notice on arrears grounds
- Managed payments do not immediately clear existing arrears — they prevent further arrears accumulating from the housing element
Frequently asked questions
What is the minimum arrears needed for a Section 8 notice in 2026?+
For Ground 8 (mandatory), the tenant must be at least 3 months in arrears at the date the notice is served AND at the date of the hearing. This threshold increased from 2 months to 3 months under the Renters' Rights Act 2025. For Grounds 10 and 11 (discretionary), any arrears at the notice date is sufficient — but the court will decide whether to grant a possession order. Ground 8A (persistent arrears) requires 3 months' arrears on 3+ separate occasions in the past 3 years.
What happens if the tenant pays the arrears before the court hearing?+
If the tenant clears arrears below 3 months before (or at) the court hearing, Ground 8 falls — the court cannot make a mandatory possession order on Ground 8 alone. However, if you also pleaded Ground 8A (persistent arrears) the court can still grant an order even if arrears are cleared. Grounds 10 and 11 remain available for the court's discretion even with reduced arrears. This is why it is critical to always plead multiple grounds on the same Form 3A notice.
Can I use Ground 8A immediately if the tenant has been late three times?+
Yes — provided the conditions are met: the tenant has been 3 or more months in arrears on 3 or more separate occasions within the preceding 3 years. Each 'occasion' must be a point in time when arrears reached 3 months or more — not just a late payment. Ground 8A is a mandatory ground, so if proven the court must make a possession order, even if the tenant has since cleared the balance.
Is Section 21 still an option for dealing with arrears?+
No. Section 21 no-fault possession was abolished on 1 May 2026. You can no longer serve a Section 21 notice. All possession for arrears must now go through Section 8, using the arrears grounds (8, 8A, 10, 11). The Section 8 route is more complex and slower than the old accelerated Section 21 procedure — which is why early intervention and correct notice service are essential.
How long does the full arrears possession process take in 2026?+
Typically 4–8 months from first missed payment to eviction in 2026, depending on court waiting times: about 1 month to reach the 3-month arrears threshold (Ground 8), 2 weeks for the Section 8 notice period (4 weeks if using Ground 10 alone), 6–12 weeks for the court hearing, plus 2–4 weeks for the eviction warrant if the tenant does not leave voluntarily. Starting the process early — and pursuing a managed payment from DWP concurrently — minimises the loss.