Rent Arrears – Landlord’s Rights Following Renters’ Rights Act Changes From May 2026

Rent arrears can be a significant problem for landlords because they disrupt cash flow. In some situations, landlords may be able to absorb rent arrears over a short period. But if the problems exist over the long term, then it will create a financial nightmare for all landlords. This is why it’s important for landlords to understand rent arrears and landlord rights.

As a landlord, the least you expect from your tenants is that they pay rent on time. Sadly, issues with payments are more common than you might think. According to a Government report, 5% of private renters were either in arrears or had fallen behind with payments in 2024-25. Meanwhile, 32% said they found it difficult to pay their rent. Dealing with rent arrears can be frustrating, but it’s important to follow the correct process. (Gov.UK)

This guide will walk you through the steps you can take when a tenant needs to catch up on rent, ensuring you are well-informed and prepared. It highlights what landlords must consider after the changes introduced by the Renters’ Rights Act 2026. This guide will help you understand rent arrears and landlord rights. (Gov.UK)

Why Might a Tenant Fall Behind on Rental Payments?

A missing payment can be disappointing and cause immediate cash flow problems for the landlord. At the end of the day, landlords may still need to pay certain bills and mortgage payments. However, it’s vital for landlords not to jump to conclusions.

There may be a good reason why your tenant hasn’t paid their rent. It does not automatically mean the tenant is refusing to pay. Sometimes, life gets the better of people, and things can fall to the wayside. The missed payment may be caused by:

• Forgetting a payment
• A failed standing order
• A change in employment or reduced income
• A delay with Universal Credit or other benefits
• Illness, bereavement or family difficulties
• A disagreement between joint tenants
• Temporary financial pressure
• Dissatisfaction with repairs or the condition of the property

The aim in the early stages is to understand what has happened. Try to avoid the situation escalating unnecessarily. Having a proper understanding of rent arrears and landlord rights is also important, so you can work out the steps you need to take moving forward.

What Should Landlords Do if Rent is Late?

Knowing what to do if your tenant is not paying rent depends on the context. First, try a gentle nudge. Send a polite reminder via a text message, phone call or email. This may be enough to resolve the issue, or the tenant may reach out with an explanation to give you important context.

Landlords should always document everything anyway, but keeping a record of any conversation at this point is essential, as you may need to rely on it in court. Even if you don’t hear back from the tenant, you should record your attempts. Doing this correctly can help protect landlord rights in rent arrears situations. 

Should landlords offer a repayment plan?

In many cases, landlords deal with missing payments by offering a repayment plan. If the tenant is willing to engage, a repayment plan may help you recover the arrears without the situation spiralling. The repayment plan should include:

• The total arrears owed
• The normal monthly rent
• The extra amount the tenant will pay towards the arrears
• The date each payment is due
• What happens if the plan is missed
• When the arrangement be reviewed

You must make sure the repayment plan is put in writing. It’s essential that you get the tenant to read the agreement and confirm they understand it. It’s best to have this agreement from your tenant in writing because it will provide clarity and help avoid future disputes.

When Should a Landlord Contact a Guarantor?

If the tenancy has a guarantor, you need to read the guarantor agreement carefully and make sure you understand it. Follow the process closely, and contact them in writing. This message should contain how much rent is overdue, the time period the rent arrears relate to, the steps you have taken to resolve the issue with the tenant, and how the guarantor can contact you.

Again, you need to make sure you keep all records relating to communication with the guarantor and their responses.

What if the Tenant Receives Universal Credit?

If the tenant is struggling to pay rent whilst on Universal Credit, then landlords may be able to request an alternative payment arrangement. Under this agreement, the housing cost position of the tenant’s Universal Credit is sent directly to the landlord’s bank account.

The agreement is under regular review because the long-term goal is for tenants to be able to manage their own finances.

From 1 May 2026, landlords cannot evict tenants if they can’t pay due to not receiving their Universal Credit. Under Ground 8, the Government’s guidance states that benefits are not counted when a tenant owes rent. This is the case even if the tenant owes three months (or 13 weeks) of rent. (Gov.UK)

Rent arrears and Landlord’s Rights

When it comes to rent arrears, landlords have traditionally relied on section 8 of the Housing Act 1988. In previous years, if the tenant became eight weeks (or two months, if paying monthly) behind on their rent, then you had the right under the Housing Act 1988 to take action and claim possession of your property. With this, the landlord would serve a Section 8 notice to inform your tenant that you intend to take them to court if they don’t pay within a further 14 days. (Gov.UK)

Before 1 May 2026, landlords could also issue a section 21 notice. This applied to landlords who gave their tenants a fixed term at the start of the tenancy. Landlords could only require tenants to leave at or after the end of their fixed term, and they needed to give notice before 1 May 2026. 

How Will the Renters’ Rights Act 2026 Change Rent Arrears Rules for Landlords?

The introduction of the Renters’ Rights Act on May 1 2026, has abolished section 21 no-fault evictions. Instead, landlords must use Section 8 and rely on a valid legal ground for possession. For rent arrears, the key grounds will continue to be Ground 8, Ground 10 and Ground 11, but the thresholds and notice periods are changing. (Gov.UK)

Ground 8: Rent Arrears and Landlord Rights

Landlords can use Ground 8, but specific thresholds need to be met depending on the circumstances that apply in that specific agreement. The tenant must owe at least:

• Three months’ rent if rent is paid monthly
• 13 weeks’ rent if rent is paid weekly or fortnightly

The tenant must owe at least this amount on the day the landlord gives notice and the day of the court hearing. If the tenant tips over the three-month threshold, but then pays some rent to dip below the threshold before the hearing, the landlord will not be able to rely on Ground 8 as a mandatory route.

Landlords must give tenants 4  weeks’ notice before they can apply to the court for a possession order to evict the tenant. All eviction notices must be clear. Landlords must make sure they include the following information:

• Name, address, and phone number of the landlord
• Name and address of the tenant
• Date the notice is served
• The grounds that the tenant violated

It’s good to include all information relating to the rent arrears. This will help protect rent arrears and landlords’ rights later in the process. (Gov.UK)

Ground 10: Rent Arrears and Landlord Rights

If the tenant has not met the thresholds listed in ground 8, then ground 10 may be available to the landlord. But using this ground is discretionary. The court will look at the circumstances and decide whether it is reasonable to make a possession order.

This is why it is essential that landlords record every bit of information they can because it will be used as evidence at this stage. As is the case above, the landlord needs to give at least 4 weeks’ notice before they can apply to the court. (Gov.UK)

Ground 11: Rent Arrears and Landlord Rights

Landlords can go down this route if the tenant has been repeatedly late with payments. Even if the tenant clears the arrears before the court hearing, landlords may be able to rely on this ground because it focuses on the pattern of late payment rather than the balance on one specific date.

Ground 11 is also discretionary, so evidence is important. Landlords should keep a full rent schedule showing when rent was due, when it was paid and how often payments were missed or delayed. Once again, landlords must provide a 4-week notice period. (Gov.UK)

Can Landlords Still Use a Section 21 Notice?

No, landlords cannot use a section 21 notice after May 1, 2026, in England because of the introduction of the Renters’ Rights Act 2026. The Government has stated that if a section 21 notice was given before May 1, 2026, it can only be used to start court proceedings up to whichever comes first: the time left on the notice, or 31 July 2026. (Gov.UK)

What can I do to avoid rent arrears?

There are a few things that you could do as a landlord to safeguard yourself against being caught up in rent arrears issues. Firstly, get yourself landlord insurance cover that will protect you if your tenant doesn’t pay the rent. 

A good policy will ensure that unpaid rent and the costs of evicting a problematic tenant are taken care of, which is a load off your mind. Secondly, make sure you screen your tenants thoroughly and always run a credit check to see whether they have a history of meeting financial requirements. If a tenant has bad credit, this is a red flag. 

You can either reject their application or if you want to go ahead and offer them the property (bad credit doesn’t always equate to a bad tenant), and then you can prepare yourself for the possibility that you might run into issues. 

Lastly, make sure you have a carefully considered and legally sound tenancy agreement, signed by you and your tenants. This way, everyone knows exactly what is expected of them. It’ll save you a significant amount of time and money in the future. 

If you’d like to learn more finance tips for landlords, visit our advice centre. We give expert guidance to landlords on topics such as property access, property occupants, pets and more. You can also use our services to compare landlord insurance quotes to find the best landlord insurance on the market. It’s simple to get a quote or call our team on 01788 818 67.