New Rules For Landlords To Handle Rent Arrears in 2026

Some tenants might think rent arrears are just a missed payment. But in fact, among the disputes faced by landlords and letting agents, rent arrears contribute to 21%. It becomes even more concerning, especially if the arrears continue for several weeks or months, which is why dealing with it correctly matters.

The rules in England changed from 1 May 2026 under the Renters’ Rights Act 2025. Landlords cannot rely on Section 21 anymore. New rules now apply to the legal grounds and possession process that must be followed to protect landlords and their rental income.

What Counts as Rent Arrears?

Rent arrears arise when a tenant doesn’t pay rent that they were supposed to under the tenancy agreement. For example, if the monthly rent is £1,200 and the tenant misses the payment, the unpaid £1,200 is rent arrears. If they pay only part of the rent, the remaining unpaid amount is also classed as rent arrears.

There is no minimum amount or waiting period. A tenant is in arrears from the day a payment is missed, even if they catch up with it the next day.

Is it common? Rent arrears are not common in every tenancy, but landlords may still have to deal with them. According to the English Housing Survey 2024-25, 2% of private renters were in arrears when surveyed. Another 3% had fallen behind with their rent at some point in the previous 12 months. This means around 5% of private renters had experienced rent arrears during the year.

The Legal Process for Rent Arrears in England in 2026

If a tenant falls behind with rent, a landlord cannot ask them to leave. From 1 May 2026, landlords in England must use one of the legal grounds for possession set out in the Renters’ Rights Act 2025. Specifically, there are three grounds: Ground 8, Ground 10 and Ground 11. 

Ground 8: Rent arrears

Ground 8 is a mandatory ground for possession. The court must grant possession if the required conditions are met.

• For monthly rent, the tenant must owe at least 3 months’ rent when the landlord gives notice and still owe at least 3 months’ rent at the court hearing.
• For weekly or fortnightly rent, the threshold is 13 weeks’ rent.
• The landlord must give the tenant 4 weeks’ notice before applying to court.
• If the arrears fall below the required amount by the time of the hearing, Ground 8 may not apply.

Ground 10: Some rent unpaid

Ground 10 is discretionary; the court will consider the situation and decide whether it is reasonable to grant possession. It can be used when the tenant owes any amount of rent. Unlike Ground 8, there is no minimum arrears amount.

Ground 11: Persistent late payment

Ground 11 is also discretionary. It applies if a tenant has repeatedly delayed paying their rent, even if they are not currently several months behind.

These grounds do not mean a landlord can remove a tenant immediately. A landlord must serve the correct notice, and if the tenant still does not leave, they can apply to the court for a possession order. Check the GOV.UK guidance for more details on the grounds for possession.

Renters’ Rights Act Changes to Rent Arrears Rules

The amount of arrears needed for Ground 8 and how much notice a landlord must give changed from 1 May 2026. 

Serving notice will not grant immediate possession of the property. If a tenant does not leave after the notice period ends, the landlord needs to apply to the county court for a possession order. The court process can take time, especially if a claim is challenged. Ministry of Justice figures show the median time from claim to repossession was 27.1 weeks in April-June 2026.

It is also important to use the correct notice. Under the new rules, landlords must use Form 3A and clearly state the ground for possession and why it applies.

What to Do When a Tenant Misses a Rent Payment

Step 1: Contact the tenant

Get in touch as soon as you notice a missed payment. A quick call or text gives them a chance to explain what happened. Maybe they have genuine reasons. 

Step 2: Follow up in writing

If the money is still unpaid after a few days, send an email or letter. In this way, you can also get a clear record of the situation and your attempts to resolve it.

Step 3: Find out what happened

Try to understand why the payment was missed. It may be a one-off issue, such as a bank error or temporary loss of income. If there is a bigger financial problem, you can discuss the next steps with the tenant.

Step 4: Consider a repayment plan

If they cannot clear the full amount at once, you may agree to a repayment plan. This could involve the usual monthly amount plus an agreed sum towards what is owed. Put the agreement in writing so both sides are clear on the terms.

Step 5: Keep clear records

Record when payments were due, what was received and when you contacted the tenant. Keep copies of emails, letters and messages. These records can be useful if the problem continues and you need to take formal action or apply for possession later.

Breathing Space Scheme 

If a tenant is struggling with debt, including rent arrears, they can apply for Breathing Space through a debt adviser for legal protection from most creditor action for up to 60 days.

The 60-day period is a protection period, not a payment holiday. It covers qualifying debts included in the Breathing Space when it starts. The tenant still needs to pay any rent that becomes due during this time.

Breathing Space does not cancel the debt. Once the standard 60-day period ends, you can resume recovery action. 

How to Prevent Rent Arrears From Happening

A few checks and simple payment arrangements can reduce the risk of missed payments from the start.

Carry out Proper Referencing

Check the applicant’s income, employment, and previous rental history before granting the tenancy. Also check whether the proposed rent is affordable based on the information available, and don’t forget to keep a record of the checks you carry out. Do not reject an applicant because they receive benefits or have children because this is now declared unlawful rental discrimination under the Renter’s Right Act 2025. 

Consider a guarantor

A guarantor can provide extra security if you have concerns about whether the tenant can meet their rental payments. Make sure the guarantor understands what they are agreeing to and also check that the guarantee covers the relevant tenant and payments. The terms should be set out clearly in writing.

Agree How Rent Will Be Paid

State the payment date clearly in the tenancy agreement and discuss how the tenant will make the payment. A standing order can help them pay automatically each month without having to remember to make a manual transfer. This can help those who receive income or benefits monthly.

Keep an Eye on Payments

Do not wait until several payments have been missed before checking the account. Review payments regularly and contact the tenant promptly if something is missing. Early communication identifies a temporary problem before it becomes a larger one.

Consider Guaranteed Rent

A Guaranteed Rent scheme can give you an agreed rental payment every month under the terms of the scheme, even if the tenant falls into arrears. This can reduce the day-to-day work involved in chasing missed payments. 

Get more certainty over your rental income with our Guaranteed Rent Service! 

These steps cannot guarantee that payments will always be made on time. However, proper checks, clear payment arrangements and early action can reduce the risk and make problems easier to manage.

Recovering Rent Arrears After a Tenant Has Left

In some cases, a tenant may leave the property before clearing or paying everything they owe their landlord. There are a few ways to still recover it. 

Contact them if you have their contact details or addresses and ask them to pay the outstanding balance. Even set a deadline for the payment. If you don’t have any information, use a tracing service to find their details. A guarantor is also responsible for unpaid rent. Check the tenancy agreement before making a claim. 

If they do not pay voluntarily, apply for a County Court Judgment (CCJ) by making a court claim to recover the debt. It doesn’t mean you will receive the money. If the debt remains unpaid, you can apply for enforcement, which may include using bailiffs or a High Court Enforcement Officer. 

Protect Your Rental Income with Professional Management

Dealing with rent arrears can take time, especially when you manage your property yourself and need to follow the correct process. If not handled properly on time, it can be a long-term problem affecting cash flow. With the right team following the right process and regular follow-up, landlords can keep their rental income on track without any delays. 

That’s what our professional property management team has done for London landlords since c.2016. We share your workload by actively looking after every aspect of property, whether it’s communication, rent collection, or day-to-day work reporting. 

Want to deal with unpaid rent issues? See how we can help you! 

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