Rent arrears-what are the legal issues?

As a tenant, whether you are a prince or pauper you must abide by the terms of your tenancy or lease agreement.

How Rent Is Paid

In some cases, rent is paid upfront as a lump sum, sometimes alongside refurbishment or maintenance costs. In these situations, there may be no further rent due during the tenancy term.

More commonly, however, rent is paid in regular instalments — usually monthly — for the duration of the tenancy. The tenancy agreement will state how much rent is due, when it must be paid, and the method of payment.

What Are Rent Arrears?

Rent arrears occur when a tenant fails to pay some or all their rent on time. This might happen because of financial difficulties, unexpected expenses, or simple oversight.

When rent is missed, it becomes overdue, and those unpaid amounts accumulate as arrears. Even if the tenant later pays part of what is owed, any remaining balance will still count as arrears until it’s fully cleared.

It’s important for tenants to communicate early if they’re struggling to pay rent — many landlords are willing to discuss repayment plans to help avoid further issues. Ignoring the problem can make matters worse and could eventually lead to legal action.

The Section 8 Notice Procedure

If a tenant does not pay rent in accordance with their agreement, the landlord has the right to take steps to recover possession of the property. One of the main legal routes for this is through a Section 8 Notice under the Housing Act 1988.

This notice gives the tenant formal warning that the landlord intends to seek possession of the property through the courts due to unpaid rent. The notice must state the specific grounds for eviction — in this case, rent arrears — and give the tenant a set period to either pay the arrears or leave the property.

Changes Under the Renters Rights Act

The forthcoming Renters Rights Act will not remove a landlord’s ability to use the Section 8 process. However, it will make some important changes. Under the new rules, landlords will only be able to serve a Section 8 Notice once a higher level of rent arrears has built up, and the notice period before court action can begin will be longer.

Finding a Practical Solution

As a landlord, eviction is often a last resort. Many landlords prefer to reach a repayment agreement with their tenant rather than go through a lengthy and costly legal process. This might involve the tenant paying off their arrears in manageable instalments, in addition to keeping up with their regular rent.

Open communication is key. In many cases, these arrangements can be agreed informally between landlord and tenant without legal assistance. However, if an agreement can’t be reached — or if arrears continue to build — seeking legal advice can help you understand your options and protect your position.

How We Can Help

However, if it is not possible to reach agreement over repayment of any arrears or the landlord wants to evict the tenant based on those arrears, please contact our experienced solicitor David Wilson at Ridley & Hall on our freephone 0800 8 60 62 65 for more detailed advice and assistance.

David Wilson, Solicitor