Dealing with Rent Arrears Under the New Renters Rights Act 2025
On 01 May 2026, the Renters Rights Act 2025 will introduce the most significant change to residential possession law in a generation.
While the Act abolishes section 21 notices, it has also made significant changes to the current statutory grounds for possession. Amongst these changes are to the ‘Rent Arrears’ grounds (Ground 81, 10 and 112) which allows landlords to commence possession proceedings where the tenant is in rent arrears.
Mandatory Ground 8
Ground 8 is the only mandatory rent arrears ground. This means that if the statutory threshold is met, the Court must make a possession order. If the requirements for ground 8 have not been made out, the mandatory ground cannot be relied upon. Because of this strict threshold, Ground 8 can often be used with discretionary grounds to give the Court an alternative basis for making an order if the arrears fall below the mandatory threshold before the hearing.
In order to rely on ground 8, at both the date of service of the section 8 notice, and the date of the hearing, the tenant must be in either thirteen weeks’ worth of rent (if rent is payable weekly), or 3 months’ worth of rent (if rent is payable monthly). There are no other rental periods listed as the Renters Rights Act 2025 also amended the rent periods for new assured tenancies.3 See our guide on other changes brought in by the Renters Rights Act here.
Discretionary Grounds 10 and 11
The Renters Rights Act 2025 did not alter grounds 10 or 11, so they will continue to operate in the same way as before namely;
- Ground 10 will apply where the tenant is in some arrears at the date of service of the notice and at the date of the hearing (with there being no requirement for the tenant to be in at least two months worth of arrears
- Ground 11 will apply where there is persistent delay in paying rent.
Even in instances where the Court is satisfied that the ground is made out, the Court may, but does not have to, make a possession order. Because the Court has discretion, it will consider the tenant’s circumstances, the reasons for the arrears, any repayment proposals, and the landlord’s conduct.
Other Considerations for Using Grounds 8, 10 and 11
Historically, the deposit rules would be relevant to a section 8 possession claim in the context of a potential counterclaim from a tenant should a landlord fail to properly protect the tenancy deposit. The correct protection of a tenancy deposit did not, strictly speaking, impact upon the validity of the s8 notice. However, under the new Act, deposit compliance is now a statutory prerequisite for obtaining a possession order. Any deposit taken from the tenant must be correctly protected in a government approved scheme and the relevant prescribed information served4.
Before making an order for possession, the Court must assess whether the tenant is actually receiving Universal Credit and whether this is the reason the arrears have arisen. The arrears must be directly linked to delays or failures in Universal Credit payments, and not to other causes such as the tenant intentionally withholding rent.5
What does this mean for you?
With section 21 abolished, landlords will be relying on the rent arrears grounds far more frequently. Ground 8 offers a mandatory route to possession, but only where the strict arrears threshold is met. Grounds 10 and 11 remain valuable alternatives, particularly where arrears fluctuate or the tenant has a history of late payment.
In practical terms, landlords will need to plan ahead, ensure full compliance, and exercise care when preparing and serving notices. The new regime is more demanding than the previous no-fault system. Professional advice is therefore crucial to ensure notices are valid, risks are controlled, and the possession process is managed correctly from the outset.
With the abolition of section 21 and the introduction of a more regulated possession system, landlords will need to adapt quickly. The Landlord Group can help landlords assess their position, manage risk, and ensure they are fully prepared for the new requirements.
Bibliography
1 Renters Rights Act 2025, Schedule 1, Section 3, Ground 8
2 Housing Act 1988, Schedule 2
3Renters Rights Act 2025, Section 1 ss 3
4 Renters Rights Act 2025, Section 26
5 ibid
