Arrears

Arrears refers to rent that is overdue and unpaid after the due date, making the tenant "in arrears." Landlords can use mandatory Section 8 Ground 8 if arrears reach 2 months' rent at both notice service and court hearing. Rent arrears account for approximately 65% of all possession claims in England, with average UK monthly rent at GBP1,366 as of November 2025 making timely collection increasingly critical for landlords.

Types of Arrears

Current Arrears: Rent that is overdue but within the current rental period

Historic Arrears: Accumulated unpaid rent from previous periods

Technical Arrears: When rent is paid but not received by the due date (e.g., bank processing delays)

Impact of Arrears

For tenants:

• Risk of eviction proceedings
• Damage to credit history
• Difficulty renting in future
• Potential court costs and judgments

For landlords:

• Loss of rental income
• Mortgage payment difficulties
• Legal costs for recovery
• Potential void periods during eviction

Eviction for Rent Arrears

Under the Housing Act 1988, landlords can use Section 8 to evict for rent arrears:

Ground 8 (Mandatory): At least 2 months' arrears at notice service AND hearing date

Ground 10 (Discretionary): Some rent is overdue at notice service date

Ground 11 (Discretionary): Persistent delay in paying rent

For Letting Agents

Best practices for managing arrears:

• Early intervention when rent is late
• Clear communication with tenants about payment difficulties
• Documenting all arrears and communications
• Understanding when to escalate to formal proceedings
• Working with guarantors where applicable