Rent arrears are every landlord's worst fear, and the Renters' Rights Act has changed the rules. Here is what now counts, how long recovery really takes in London, and how to protect your income before a problem starts.
Rent arrears are harder to deal with than they used to be. Since 1 May 2026, the rules for recovering a property from a tenant who stops paying have shifted in the tenant's favour. For London landlords, where rents and court delays are both high, the cost of getting it wrong has grown.
That does not mean you are powerless. Most arrears can be solved early, with a phone call and a fair plan. The landlords who struggle are usually the ones who wait too long or serve the wrong notice.
This guide explains the new rules in plain English. We cover what changed, what a typical arrears case could cost you, and the practical steps that protect your rent.
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What this guide covers
What changed for rent arrears in 2026
The Renters' Rights Act came into force on 1 May 2026. It abolished Section 21, the old "no-fault" route. As a result, landlords now rely on a Section 8 notice, which must name a specific legal ground.
For arrears, the key ground is Ground 8. It is mandatory, which means the court must grant possession if the conditions are met. Those conditions are now stricter.
| Ground 8 rule | Before 1 May 2026 | From 1 May 2026 |
|---|---|---|
| Arrears needed (monthly rent) | 2 months | 3 months |
| Arrears needed (weekly rent) | 8 weeks | 13 weeks |
| Notice period | 2 weeks | 4 weeks |
| Universal Credit delays | Counted | Ignored |
Two more details matter. First, the arrears must reach the threshold both when you serve notice and on the day of the hearing. If the tenant pays enough to drop below it, Ground 8 falls away. Second, Grounds 10 and 11 still exist. These are discretionary, so the judge decides, but they can help with smaller or persistent late payments.
Why rent arrears cost London landlords more
Simply put, higher rents mean bigger sums at stake. The average rent in Hackney is around £2,644 a month. So by the time a tenant owes three months, you are already about £7,900 down, and you cannot yet start court action.
Then the clock keeps running. Four weeks of notice adds roughly another £2,400. After that, the NRLA warns it can take at least six months from applying to court to enforcing possession, with particularly long delays in London.
What to do when rent arrears start
The first missed payment is the moment that counts. Here is a calm, step-by-step approach.
Talk to your tenant straight away
Arrears are not always deliberate. For example, a job loss or a benefit delay is common. Call or message quickly, then confirm what you agreed in writing.
Agree a realistic repayment plan
In practice, a plan the tenant can actually afford works better than one they will break. Put it in writing, and involve any guarantor.
Check for Universal Credit
Does your tenant claim Universal Credit? If they are two months or more behind, you can ask for the housing element to be paid straight to you.
Keep a full record
Log every payment, call, and letter. That way, if the case reaches court, this evidence shows you acted fairly.
Serve the right notice, at the right time
Only once early steps have failed should you serve a Section 8 notice. Use the current form, name the correct grounds, and give the full four weeks.
Mistakes that sink an arrears claim
Ground 8 is strict. A small error can see a claim struck out, which sends you back to the start while the arrears keep growing.
The most common problems are using an old notice template, miscounting the arrears, or failing to protect the deposit. Since 1 May 2026, an unprotected deposit can be used as a defence to a possession claim. Above all, never change the locks, cut off utilities, or pressure a tenant to leave. Harassment and illegal eviction can lead to fines of up to £40,000.
How to protect yourself from rent arrears
The best arrears case is the one that never happens. Prevention starts before a tenant moves in.
Reference thoroughly
First, check income, previous landlords, and identity. Digital ID checks, explained in our guide to IDVT, help stop fraud before it starts.
Consider rent guarantee insurance
In addition, insurance can cover lost rent and legal costs if a tenant stops paying. Read the terms carefully, as many policies require strict referencing and prompt reporting.
Use a managed service
Finally, a good agent spots a missed payment on day one and acts the same week. They also serve notices correctly, which avoids the costly errors above.
How Homefinders protects your rent
We have managed property across Hackney and East London since 1988, so we have handled rent arrears through every kind of market. Our managed packages are built to keep your income steady.
Our Premium Plus package guarantees your rent is paid on time every month, even if the tenant fails to pay. It also covers eviction costs, with rent paid until you get the property back. Our Premium and Value Managed packages include free rent guarantee insurance for new tenancies. To compare them, see our guide to let only vs fully managed, or read more about what landlords worry about under the new rules.
Stop worrying about rent arrears
Speak to our East London lettings team about guaranteed rent and full management.
Frequently asked questions
Rent arrears and the new rules
How much rent arrears before a landlord can evict?
For the mandatory Ground 8, a tenant must owe at least three months' rent, or 13 weeks if rent is paid weekly. This applies both when notice is served and at the court hearing. Smaller arrears can be pursued under discretionary Grounds 10 or 11.
What notice do I give for rent arrears now?
Under Ground 8, the minimum notice is now four weeks, up from two. You must use a Section 8 notice that names the correct grounds.
Do Universal Credit delays count as rent arrears?
Not for Ground 8. Arrears that exist only because a Universal Credit payment has not yet arrived are ignored when the court checks the threshold.
Protecting your rent in London
How long does it take to evict for rent arrears in London?
It varies, but expect at least six months from applying to court to enforcing possession, and longer in London. Add the time needed for arrears to build and the four-week notice.
Can I change the locks if my tenant stops paying?
No. Changing locks, cutting off utilities, or forcing a tenant out is illegal eviction. Councils can fine landlords up to £40,000, so always use the proper court process.
What is the best protection against rent arrears?
Thorough referencing, rent guarantee insurance, and fast action on the first missed payment. A managed service with guaranteed rent removes the risk altogether.