Rent Arrears Bite: Possession Claims Up 6% – Act Before 3 Months

Landlords took 23,635 possession claims to court in England and Wales between April and June 2026, up 6% on the same quarter last year, according to the latest Ministry of Justice figures. That quarter included 1 May, when the Renters’ Rights Act switched off section 21 for new notices in England, and the rise came as rents kept climbing faster than many tenants can comfortably absorb.

The pressure is showing up in rent accounts. Deposit-alternative firm Reposit’s own data put the average arrears it saw at a record £2,281 in the first quarter of 2026, far more than the typical cash deposit.

For landlords in England, the rules on rent arrears changed on 1 May 2026. You now have to wait until a tenant owes three months’ rent before you can use the mandatory arrears ground, and every month you wait is another month the deposit doesn’t cover. Here’s what the numbers mean, how the new timeline works, and how to get ahead of arrears before they reach court.

What the possession figures show

The MoJ’s April to June 2026 bulletin, published on 13 August, shows claims rising while the later stages of the process fell. Warrants dropped 6% to 9,715 and bailiff repossessions dropped 3% to 6,560.

Accelerated claims, the section 21 route, jumped 16%. That fits landlords rushing to use section 21 notices served before 1 May while they still could. The MoJ itself says it is “not clear” yet how much of the change is down to the Act.

Accelerated claims will now fade out, because a section 21 notice can’t be used to start proceedings after 31 July 2026. From here on, private landlords in England who need possession for arrears will be using section 8, so the “private landlord” line is the one to watch.

Rents aren’t easing either. The ONS Price Index of Private Rents puts the UK average at £1,406 a month in September 2026, £52 more than a year earlier. In England the average is £1,466 (up 4.0%) and in London £2,338.

Why your deposit won’t cover arrears

In England, the Tenant Fees Act 2019 caps a tenancy deposit at five weeks’ rent when the annual rent is under £50,000, or six weeks’ rent at £50,000 or more. One week’s rent is the annual rent divided by 52.

That means a capped deposit covers roughly 1.15 months of rent. Ground 8 can’t be used until three months are owed, so by the time the mandatory ground is even available, the arrears are already about two and a half times the deposit.

Reposit’s published data for January to March 2026 shows the same gap in the real world. Average arrears were £2,281, while the average traditional deposit was £1,308, a shortfall of £973. Note that this comes from Reposit’s own customer base, not the whole market.

The new arrears grounds in England

England only. These rules come from the Renters’ Rights Act 2025, which amended the Housing Act 1988 from 1 May 2026. Wales, Scotland and Northern Ireland each have their own regimes.

Under the current text of Ground 8, at least three months’ rent must be unpaid if rent is monthly, or 13 weeks’ rent if it is weekly or fortnightly. Those thresholds replaced the old two months and eight weeks. The arrears must exist both on the date you serve the section 8 notice and on the date of the hearing.

There’s also a Universal Credit carve-out. If the tenant is entitled to the housing element of Universal Credit, any amount unpaid only because they haven’t yet received that payment is ignored when you add up the arrears.

The notice is Form 3A, the section 8 notice. Under section 8 of the Housing Act 1988, the four weeks run from the date of service, and you have up to 12 months from service to start court proceedings.

You can’t serve a notice on Grounds 8, 10 or 11 while the tenant is in a debt respite “breathing space”, according to the government’s Form 3A guidance for landlords. The same guidance says that, even on a mandatory ground, the court can put back the possession date by up to six weeks for exceptional hardship.

Timeline and costs: from first missed payment to possession

Take a tenant paying £1,466 on the 1st of each month who misses 1 December 2026 and pays nothing after that. Here is how the earliest realistic timeline plays out. The court stage uses the MoJ median for landlord claims from claim to bailiff repossession.

Add the court fees from the civil court fees list (EX50): £415 for a county court possession claim and £152 for a warrant of possession, so £567 in total. Take off the £1,692 deposit and the landlord in this example is still about £13,535 down, before legal fees and any repairs.

The MoJ breaks down where that time goes. In April to June 2026, the median was 7.6 weeks from claim to order, 14.9 weeks from claim to warrant, and 9.4 weeks from warrant to repossession. Plenty of tenants leave once an order is made, so many cases finish sooner. But the median is the honest planning figure for a tenant who stays put.

Calculator: your arrears exposure and Ground 8 dates

Enter the rent, the date of the first missed monthly payment and anything the tenant has paid since. The tool works out today’s arrears, how far the deposit falls short, when Ground 8 becomes available, the earliest date you could issue a claim, and the total rent at risk if the case runs to bailiff repossession.

Spotting arrears early and agreeing a payment plan

With a three-month wait before the mandatory ground is available, the cheapest arrears are the ones you deal with in the first fortnight. The early warning signs are usually there.

• Late, then short. A payment that arrives a few days late, followed by a part-payment, is the classic first step.
• A change in how they pay. A cancelled standing order, a new payer, or rent split across several transfers.
• Going quiet. Unanswered messages, missed inspection appointments, or a sudden request to change the rent date.
• Benefit changes. A move onto Universal Credit can mean a gap before the first payment, and Ground 8 ignores amounts that are late for that reason.

A payment plan is often the best result for both sides, but structure it with care. If the tenant pays the arrears below three months before the hearing, Ground 8 falls away. That’s why many landlords name Grounds 8, 10 and 11 together on Form 3A, so the court still has a discretionary route if the balance drops.

What to do now: step by step

1. Day 1 to 3 after a missed payment: contact the tenant by phone and in writing. Ask what’s happened and when they can pay.
2. Keep a running rent statement showing every due date, payment and balance. It’s the core evidence for any arrears ground.
3. Check your guarantor and insurance terms. Rent guarantee policies often need you to notify the insurer within a set time of the first missed payment.
4. Offer a written payment plan if the tenant engages. Point them to free debt advice, and ask whether they’re claiming housing support.
5. Diary the Ground 8 date (the third missed monthly payment) and check whether a breathing space is in place before serving anything.
6. Serve Form 3A on Grounds 8, 10 and 11 as soon as the threshold is met. Keep proof of service.
7. Issue the claim once the four weeks have passed, and well within 12 months of service. Update the rent statement right up to the hearing.

• Rent statement up to date, with every due date and payment
• Written record of every contact with the tenant
• Guarantor, rent guarantee insurer or agent notified
• Payment plan offered and confirmed in writing
• Breathing space check done before serving notice
• Ground 8 threshold date in the diary (3 months or 13 weeks)
• Form 3A completed with Grounds 8, 10 and 11 and proof of service kept
• Claim issued after the 4-week notice, within 12 months
• Arrears still at 3 months or more on the hearing date

FAQ

How many months of rent arrears before I can evict in England?

For the mandatory Ground 8, at least three months’ rent must be unpaid if rent is monthly (13 weeks if weekly or fortnightly). That applies both when you serve notice and at the hearing. Grounds 10 and 11 can be used with lower arrears, but the court decides whether possession is reasonable.

What is the notice period for rent arrears under the Renters’ Rights Act?

Four weeks, starting on the date you serve Form 3A, for Grounds 8, 10 and 11 in England. You then have up to 12 months to start court proceedings.

Can I evict if the tenant pays some of the arrears before court?

If the balance falls below three months by the hearing, Ground 8 can’t succeed. You can still rely on Grounds 10 or 11 if they were in your notice, but those are discretionary.

How long does a landlord possession claim take?

In April to June 2026, the MoJ median was 27.1 weeks from claim to bailiff repossession in England and Wales, and 7.6 weeks from claim to a possession order. Add the four-week notice and the three months before Ground 8 is available.

Can I use the deposit to cover rent arrears?

Yes, unpaid rent can be claimed from a protected deposit at the end of the tenancy, through the deposit scheme’s process. But in England the deposit is capped at five weeks’ rent for most tenancies, which is well short of the three months needed for Ground 8.

How much does it cost to take a tenant to court for arrears?

The court fee for a county court possession claim is £415, and a warrant of possession for county court bailiffs costs £152, according to the EX50 fees list. Solicitor’s fees, if you use one, are on top.