Few things worry a landlord more than a tenant who has stopped paying rent. With Section 21 no-fault evictions gone, arrears have become one of the main routes to getting a property back, and the rules around them changed on 1st May 2026. If you are facing a missed payment, or just want to be prepared, here is how it works now.
What changed for rent arrears
Rent arrears are dealt with under Section 8 of the Housing Act 1988, using what are called grounds for possession. Three matter here, and the biggest change is to the first one.
- Ground 8 (mandatory): the court must order possession if the tenant owes at least three months' rent, or thirteen weeks for weekly and fortnightly tenancies. The arrears must exist both when you serve the notice and on the day of the hearing. This used to be two months.
- Ground 10 (discretionary): some rent is unpaid on the day you serve notice and the day you start court proceedings. It is a safety net if the tenant pays enough to drop below the Ground 8 threshold.
- Ground 11 (discretionary): the tenant has persistently paid late, whether or not they owe anything right now.
The minimum notice period for these grounds is now four weeks, and the notice must be on the prescribed Form 3a. For a plain-English overview of the process, see our guide to Section 8 notices.
Why the threshold matters
Ground 8 is only mandatory while the arrears stay at or above the threshold. If your tenant pays a chunk off before the hearing and falls under three months, the mandatory route closes. The court then has discretion, which is why landlords and their advisers usually cite Grounds 8, 10 and 11 together on the same notice. It keeps your options open whichever way the balance moves.
Step by step: what to do when rent is late
Step 1: Check what has actually happened
Before anything else, make sure the rent really is missing. Check your bank account, look for payments to the wrong account and confirm the due date in the tenancy agreement. A simple mistake is far more common than a deliberate refusal to pay.
Step 2: Pick up the phone
A friendly, early conversation solves most problems. Tenants fall behind because of lost jobs, delayed benefits or an unexpected bill, and many will agree a plan if asked sensibly. Follow up in writing so there is a record of what was said.
Step 3: Build a rent schedule
Keep a clear table showing each payment due, each payment received and the running balance. This becomes the backbone of your evidence if the matter ever reaches court. Keep it updated, along with every message you send and receive.
Step 4: Check for Universal Credit delays
If your tenant claims Universal Credit, check whether part of the shortfall is down to delays in their payments. Arrears caused by Universal Credit delays cannot count towards the Ground 8 total, so record that you have looked into it before you take things further.
Step 5: Send a formal reminder
A covering letter that sets out the exact arrears, attaches the rent schedule and encourages the tenant to get in touch shows you acted reasonably. Courts like to see that. Our guide to tenancy deposit protection is worth a read at this point, because an unprotected deposit can derail a possession claim.
Step 6: Serve the right notice
If informal routes fail, serve Form 3a with the correct grounds and an accurate date from which you may apply for possession. Mistakes on the form are a classic reason for delays, so check the details carefully or ask your agent or a solicitor to do it.
Step 7: Apply to court if needed
If the tenant has not paid and has not left once the notice period ends, you can apply to the court. Bring your rent schedule, correspondence and tenancy paperwork. If you are on the new landlord database once it is live, make sure your registration is in order too. Our Renters' Rights Act landlord guide explains how the wider system now fits together.
Mistakes that can cost you months
- Serving the wrong form: old notices and templates no longer work. Use Form 3a.
- Relying on Ground 8 alone: if the balance dips below the threshold you have nothing to fall back on.
- Skipping the paper trail: verbal chats do not count as evidence.
- Ignoring the deposit: protection and prescribed information must be in order.
- Taking matters into your own hands: changing the locks, removing belongings or cutting off utilities is illegal harassment. Only a court order and bailiffs can end a tenancy by force.
Prevention beats cure
The best arrears strategy is to avoid them. Thorough referencing, affordability checks and, where appropriate, a guarantor all help, and our guide to guarantor agreements under the Renters' Rights Act covers what is still possible. Rent guarantee insurance can also soften the blow if things do go wrong. A prompt, polite response in the first week of a missed payment prevents far more trouble than a stern letter in the third month.
Want someone else to handle it?
Chasing rent is nobody's favourite job. Through our fully managed service, we collect rent, spot late payments early and handle the paperwork for a flat fee. If you would rather start with a reliable tenant, our tenant find service covers marketing, referencing and the tenancy agreement. And if arrears have you rethinking life as a landlord, you can sell your home for a flat fee too.
This article is general guidance, not legal advice. Possession cases can be complex, so speak to a qualified professional about your own situation.
