What can a landlord do about rent arrears?
Rent arrears are rent that is due but unpaid. Landlords can seek possession on the mandatory Ground 8 once at least three months' rent is owed, or on discretionary grounds for smaller arrears or persistent late payment. When a property is sold, arrears are usually kept by the seller or assigned to the buyer by agreement.
Read more in our guide: Selling a portfolio with tenants
Key facts at a glance
| Item | Detail |
|---|---|
| Ground 8 (mandatory) | At least 3 months' rent owed when notice is served and at the hearing; 4 weeks' notice |
| Ground 10 (discretionary) | Some rent owed when notice served and when proceedings start |
| Ground 11 (discretionary) | Persistent delay in paying rent |
| Universal Credit | Benefits not yet paid do not count towards Ground 8 arrears |
| Other routes | Money claim in the county court, guarantor claim, direct payment from Universal Credit |
| On sale | Arrears stay with the seller unless assigned to the buyer |
Practical Steps
- Contact the tenant early and find out why the rent is late.
- Agree a written repayment plan if possible, and check whether the tenant can get help, such as Universal Credit housing costs or a discretionary housing payment.
- If the tenant receives Universal Credit, ask for rent to be paid to you directly once arrears build up.
- Keep an accurate rent statement.
- If there is no progress, serve a Section 8 notice on the appropriate grounds and consider a money claim.
Selling a Property With Arrears
- The rent schedule in the sale pack must show arrears honestly. Buyers will check it against bank statements.
- The contract should say whether arrears up to completion stay with you or are assigned to the buyer, often at a discount.
- Investors do buy properties with problem tenancies, but price in the risk and the cost of possession proceedings.
- A portfolio sale can include a small number of problem tenancies without derailing the deal, if they are disclosed upfront.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Rent arrears are rent that is due but unpaid. Landlords can seek possession on the mandatory Ground 8 once at least three months' rent is owed, or on discretionary grounds for smaller arrears or persistent late payment. When a property is sold, arrears are usually kept by the seller or assigned to the buyer by agreement.
For the mandatory Ground 8, at least three months' rent must be owed both when the notice is served and at the court hearing. Smaller arrears can support discretionary grounds.
Yes. Disclose the arrears to the buyer and agree in the contract whether they stay with you or pass to the buyer.
Four weeks for Grounds 8, 10 and 11 under the rules in force from 1 May 2026.
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