Rent arrears are one of the most stressful situations a landlord can face. A tenant who stops paying rent puts your mortgage, your finances, and your plans at risk. Under the Renters' Rights Act 2025 (c. 26), Section 21 is no longer available as a fallback, so understanding your legal options for dealing with arrears is more important than ever. Here is a practical guide to what you can do.
Start with Communication
Before reaching for legal notices, talk to your tenant. Many arrears situations arise from temporary financial difficulty — a job loss, an illness, a delayed benefit payment — rather than a deliberate refusal to pay. A quick conversation can often resolve the situation or lead to an agreed payment plan. Keep a written record of all communications. If the tenant is willing to engage and catch up, a payment plan is usually the fastest and cheapest resolution for both parties.
Send a Formal Arrears Letter
If informal communication does not resolve the issue, send a formal letter setting out the arrears, the amount owed, and a deadline for payment. State clearly that you may take further action if the arrears are not cleared. This letter puts the tenant on formal notice and creates a paper trail that will be useful if you need to go to court later. Keep a copy and proof of postage.
Ground 8: Mandatory Possession for Serious Arrears
Ground 8 of Schedule 2 to the Housing Act 1988 is a mandatory ground for possession. It applies where the tenant owes at least three months' rent at both the date the Section 8 notice is served and the date of the court hearing. The notice period is four weeks. Because Ground 8 is mandatory, the court must grant a possession order if the arrears threshold is met at both dates. However, if the tenant reduces the arrears below three months before the hearing, the ground falls away.
Ground 10: Discretionary Possession for Some Arrears
Ground 10 is a discretionary ground that applies where the tenant owed rent at the date the Section 8 notice was served and at the date of the court hearing. Unlike Ground 8, there is no minimum threshold — any amount of arrears can qualify. Because it is discretionary, the court considers all the circumstances, including the amount owed and the tenant's efforts to pay. The court may grant a possession order, a suspended order, or refuse the order entirely.
Ground 11: Persistent Late Payment
Ground 11 is another discretionary ground. It applies where the tenant has persistently delayed paying rent, even if no rent is currently owed. This ground is useful where a tenant regularly pays late but then catches up before any arrears accumulate to a level that would trigger Ground 8 or Ground 10. You will need to show a pattern of late payment over time, so keep detailed rent payment records showing the due date and the actual date of payment for each month.
Ground 8A: Persistent Arrears Over Three Years
Ground 8A is a new ground introduced by the Renters' Rights Act. It applies where the tenant has been in at least two months' rent arrears on at least three separate occasions within the preceding three years, regardless of whether any arrears exist at the date of the hearing. This is a mandatory ground, so if you can prove the pattern, the court must grant possession. Ground 8A addresses the situation where a tenant repeatedly falls into arrears, pays down just enough to defeat Ground 8, and then falls into arrears again.
Consider a Payment Plan
Before pursuing possession, consider whether a payment plan might resolve the situation. If the tenant is willing to pay the arrears in instalments on top of the ongoing rent, a written payment plan can be a good outcome. It avoids court costs, void periods, and the hassle of finding a new tenant. Make sure the plan is in writing with clear amounts and deadlines. If the tenant defaults on the plan, you still have the option to serve a Section 8 notice.
Keep Records
Whatever approach you take, documentation is everything. Keep records of every rent payment, every missed payment, and every communication with the tenant. If you end up in court, the judge will want to see a clear chronology supported by evidence. Good records make the difference between a successful and an unsuccessful possession claim.
Take Action
Use our Notice Period Calculator to check the correct notice period for each Section 8 ground. Generate your document pack for Section 8 notice templates pre-filled with your details. For a detailed breakdown of all possession grounds, read our guide to Section 8 Grounds for Possession.