Possession Claims Rise 6% Amid Rent Arrears

Landlord possession claims in England and Wales increased by 6% between April and June 2026, with 23,635 cases brought before the courts. The latest Ministry of Justice figures show growing pressure on the rental sector as more landlords take action to recover their properties.

The figures cover a significant period for the private rented sector, including 1 May 2026, when the Renters’ Rights Act came into force and abolished Section 21 notices for new cases in England.

At the same time, rising rents and household expenses are making it increasingly difficult for some tenants to keep up with payments. Data from deposit-alternative provider Reposit shows that average rent arrears among its customers reached a record £2,281 during the first quarter of 2026.

For landlords in England, the rules have also become more demanding. Under the Renters’ Rights Act, landlords must now wait until a tenant owes at least three months’ rent before relying on the mandatory Ground 8 possession ground. This creates a longer period during which unpaid rent can accumulate before landlords can begin proceedings using this ground.

Key figures landlords should know

The latest figures and changes highlight several important points for landlords:

• 23,635 possession claims: Landlord claims in England and Wales between April and June 2026, representing a 6% annual increase.
• 27.1 weeks: Median time from a landlord’s possession claim to repossession by bailiffs.
• Three months of arrears: The new minimum required for mandatory Ground 8 in England, or 13 weeks for weekly or fortnightly rent.
• Four weeks’ notice: The notice period for Grounds 8, 10 and 11.
• £415 court fee: The cost of making a county court possession claim.
• £152 warrant fee: The additional cost of applying for a warrant of possession.
• £1,406 average rent: The UK average monthly private rent in September 2026, representing annual growth of 3.8%.

What the latest possession figures reveal

The Ministry of Justice’s April to June 2026 statistics, published on 13 August, show that possession claims increased even though the number of cases reaching the later stages of the process declined.

Warrants of possession fell by 6% to 9,715, while repossessions carried out by bailiffs decreased by 3% to 6,560.

One particularly noticeable change was the increase in accelerated possession claims, which rose by 16%. These claims were previously associated with the Section 21 process, suggesting that some landlords may have been trying to use notices served before the 1 May deadline.

The Ministry of Justice has cautioned that it is too early to establish how much of the change can be attributed directly to the Renters’ Rights Act.

The breakdown of possession claims during the quarter was as follows:

Accelerated Section 21 claims are expected to decline as the old process is phased out. Landlords could no longer use a Section 21 notice to begin court proceedings after 31 July 2026.

For private landlords in England, possession cases will increasingly rely on Section 8 grounds. This makes the standard private landlord claim figures particularly important when monitoring how the new rules affect the sector.

Rental prices are also continuing to increase. The Office for National Statistics reported that average UK private rents reached £1,406 per month in September 2026, which was £52 higher than a year earlier.

In England, the average monthly rent stood at £1,466, representing annual growth of 4%. London recorded a considerably higher average of £2,338 per month.

Why a tenancy deposit may not cover rent arrears

One of the biggest concerns for landlords is the gap between the amount they can hold as a tenancy deposit and the level of arrears required before mandatory Ground 8 can be used.

Under the Tenant Fees Act 2019, most tenancy deposits in England are limited to five weeks’ rent where annual rent is below £50,000. For properties with annual rent of £50,000 or more, the maximum is six weeks.

Based on the five-week limit, a typical deposit only represents around 1.15 months of rent.

However, landlords must now wait until at least three months of rent is unpaid before Ground 8 can be relied upon. This means the arrears could already be more than twice the value of the deposit by the time the mandatory possession ground becomes available.

Example using the average English rent

Using the September 2026 average monthly rent of £1,466:

• Annual rent: £17,592
• One week’s rent: £338.31
• Maximum five-week deposit: approximately £1,692
• Three months of unpaid rent: £4,398
• Amount not covered by the deposit: £2,706

Even when a landlord holds the maximum permitted deposit, it would not cover the full amount owed once the three-month Ground 8 threshold is reached.

The figures from Reposit also demonstrate the potential gap between deposits and unpaid rent. Its January to March 2026 data recorded average arrears of £2,281, compared with an average traditional tenancy deposit of £1,308.

This represents a shortfall of £973.

It is worth noting that Reposit’s figures are based on its own customer data and should not be treated as a measure of the entire UK rental market.

Understanding the new rent arrears rules

The changes to rent arrears possession grounds apply to England and were introduced through the Renters’ Rights Act 2025, which amended the Housing Act 1988 from 1 May 2026.

Wales, Scotland and Northern Ireland have separate rental legislation, so landlords operating outside England should check the rules that apply in their area.

Under the revised Ground 8 requirements, tenants must owe at least three months’ rent where payments are made monthly. For tenants paying weekly or fortnightly, the threshold is 13 weeks of unpaid rent.

Importantly, the required amount must still be outstanding at two separate points:

1. When the landlord serves the Section 8 notice.
2. When the possession case reaches the court hearing.

This means landlords could lose the ability to rely on mandatory Ground 8 if a tenant makes enough payments to bring the arrears below the required level before the hearing.

There is also an exception relating to Universal Credit. Where a tenant is entitled to the housing element of Universal Credit, an amount that remains unpaid solely because the tenant has not yet received that payment is excluded when calculating the arrears.

The three main possession grounds for rent arrears

Landlords can consider Grounds 8, 10 and 11 when taking action over unpaid rent.

Ground 8 is mandatory, meaning the court must grant possession if the landlord proves that the required conditions have been met.

Grounds 10 and 11 are discretionary. The court must consider the circumstances and decide whether making a possession order is reasonable.

Landlords must use Form 3A to serve a Section 8 notice. The four-week notice period begins on the date the notice is served, and landlords have up to 12 months from service to start court proceedings.

There are also restrictions on serving notices during a debt respite period, commonly known as a breathing space. Government guidance confirms that landlords cannot serve notices relying on Grounds 8, 10 or 11 while a tenant is protected by this scheme.

Even where a mandatory possession ground has been established, the court can delay the possession date by up to six weeks in cases involving exceptional hardship.

How long can the possession process take?

The new three-month arrears threshold means landlords may face a lengthy wait before they can even begin the mandatory possession process.

Once the required arrears have accumulated, landlords must still provide four weeks’ notice before starting a court claim.

The Ministry of Justice recorded a median period of 27.1 weeks between a landlord making a possession claim and bailiffs repossessing the property during April to June 2026.

This does not include the time spent waiting for the arrears threshold to be reached or the notice period before proceedings can begin.

Example: A landlord dealing with three missed monthly payments

Consider a property in England with monthly rent of £1,466, payable on the first day of each month.

If the tenant misses the payment due on 1 December 2026 and makes no further payments, the process could look like this:

The longer the process continues, the more unpaid rent can accumulate.

Landlords must also account for court fees. According to the civil court fees list (EX50), a county court possession claim costs £415, while applying for a warrant of possession costs a further £152.

This brings the two court fees to £567, excluding any solicitor’s fees or other legal expenses.

Using the figures in this example, the landlord could face a substantial financial shortfall even after taking the tenancy deposit into account. The source calculation estimates the loss at around £13,535 before legal fees and any repair costs.

Where does the court process time go?

The Ministry of Justice provides a further breakdown of the time involved in possession proceedings during April to June 2026:

• 7.6 weeks: Median time from a possession claim to a court order.
• 14.9 weeks: Median time from a possession claim to a warrant being issued.
• 9.4 weeks: Median time from a warrant being issued to bailiff repossession.

Not every case will take this long. Some tenants leave the property after a possession order is granted, avoiding the need for bailiff action.

However, landlords should consider the full timeline when assessing their financial exposure, particularly where a tenant is likely to remain in the property throughout the proceedings.

How landlords can identify rent arrears early

With the mandatory Ground 8 threshold now set at three months, landlords need to pay close attention to payment patterns from the beginning of a tenancy.

Taking action when the first payment is missed could help prevent a relatively small arrears balance from developing into a much larger financial problem.

Some early warning signs include:

Repeated late or partial payments

A tenant who starts paying rent several days late or regularly makes smaller payments instead of settling the full amount may be experiencing financial difficulties.

Changes to payment arrangements

A cancelled standing order, a new person making payments or rent being transferred in several instalments could indicate that the tenant is struggling to maintain their usual payment arrangements.

Reduced communication

Tenants who stop responding to messages, miss scheduled appointments or become difficult to contact may be dealing with financial or personal problems that affect their ability to pay rent.

Changes in benefit payments

A tenant moving onto Universal Credit may experience a delay before receiving their first housing payment. Landlords should understand how this could affect the rent account and remember the specific Universal Credit rules when calculating arrears for Ground 8.

Agreeing a payment plan with tenants

Where a tenant is willing to communicate and make payments, agreeing a repayment arrangement may help both parties avoid the cost and stress of court proceedings.

Any agreement should clearly set out the normal monthly rent, the amount being paid towards the outstanding balance and the dates payments are expected.

For example, a tenant paying £1,466 per month who owes two months’ rent would have arrears of £2,932.

A repayment arrangement involving the full monthly rent plus an additional £244 per month would clear the outstanding balance over 12 months.

This would bring the total monthly payment to £1,710.

Landlords should put any agreement in writing and keep a record of the agreed dates and amounts. It is also important to monitor whether payments are being made as promised.

However, landlords should be aware that if the arrears fall below three months by the court hearing, mandatory Ground 8 will no longer be available. This is one reason landlords may consider including Grounds 8, 10 and 11 together on the Section 8 notice, where appropriate.

Grounds 10 and 11 may still provide a discretionary route for possession if the tenant’s arrears fall below the Ground 8 threshold.

What landlords should do when rent is missed

Having a clear process for dealing with unpaid rent can help landlords respond quickly and maintain the evidence needed if court action eventually becomes necessary.

The following steps can help:

1. Contact the tenant immediately. If rent is missed, get in touch by telephone and in writing to establish what has happened and when payment can be expected.
2. Maintain an accurate rent statement. Record every payment due, every amount received and the outstanding balance. This information will be important if possession proceedings become necessary.
3. Check your insurance and guarantor arrangements. Rent guarantee insurance policies may require landlords to report missed payments within a specific period. Check the policy conditions and notify the relevant parties where required.
4. Consider a repayment agreement. If the tenant is willing to resolve the arrears, offer a realistic payment arrangement and confirm the terms in writing. You can also direct tenants towards free debt advice and ask whether they receive housing support.
5. Record the Ground 8 threshold date. Keep track of when the tenant reaches three months of unpaid rent or 13 weeks for weekly or fortnightly payments.
6. Check for a breathing space arrangement. Before serving a Section 8 notice, establish whether the tenant is protected by a debt respite scheme.
7. Serve the correct notice. Once the relevant conditions are met, consider serving Form 3A using the appropriate grounds. Keep evidence showing when and how the notice was delivered.
8. Start court proceedings within the required period. Once the four-week notice period has expired, a landlord can begin a possession claim, provided the relevant requirements have been met. Proceedings must be started within 12 months of serving the notice.
9. Keep the rent account updated. Continue recording payments and outstanding arrears up to the court hearing, as the amount owed may affect whether Ground 8 remains available.

Landlord arrears checklist

Before taking further action, landlords should make sure they have:

• An up-to-date rent statement showing all missed payments and amounts received.
• Written records of communications with the tenant.
• Confirmation that the guarantor, insurer or letting agent has been notified where necessary.
• A record of any repayment arrangement offered or agreed.
• Confirmation that no breathing space restriction prevents service of notice.
• The date when the three-month or 13-week Ground 8 threshold is reached.
• A correctly completed Form 3A, with relevant possession grounds included.
• Proof that the notice was served.
• Evidence that the arrears still meet the Ground 8 threshold at the hearing, if relying on that ground.

Frequently asked questions

How many months of rent arrears are needed before a landlord can use Ground 8 in England?

Under the Renters’ Rights Act, a tenant must owe at least three months’ rent if payments are monthly. For weekly or fortnightly rent, the threshold is 13 weeks.

The required amount must be outstanding both when the landlord serves the Section 8 notice and when the case reaches the court hearing.

Landlords may also consider Grounds 10 and 11, which can apply where the arrears are lower or the tenant has a history of repeatedly paying late. These are discretionary grounds, so the court must decide whether possession is reasonable.

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

The notice period for Grounds 8, 10 and 11 in England is four weeks.

Landlords must serve the correct Section 8 notice using Form 3A. Once the notice period has expired, they can begin court proceedings, provided the relevant conditions are met.

Proceedings must be started within 12 months of serving the notice.

Can a landlord still use Ground 8 if the tenant makes a partial payment?

It depends on how much remains outstanding by the time of the court hearing.

If the tenant makes payments that reduce the arrears below three months’ rent, Ground 8 will no longer meet the mandatory threshold.

However, landlords may still be able to rely on Grounds 10 or 11 if these were included in the notice and the court considers possession reasonable.

How long does it take to repossess a property through the courts?

Ministry of Justice figures for April to June 2026 show a median of 27.1 weeks between a landlord submitting a possession claim and bailiffs repossessing the property.

This does not include the initial period needed to build up three months of arrears or the four-week notice period. The overall process can therefore take considerably longer.

Can landlords use the tenancy deposit to cover unpaid rent?

Yes. Unpaid rent can be claimed against a protected tenancy deposit at the end of the tenancy, following the relevant deposit scheme’s procedures.

However, most tenancy deposits in England are limited to five weeks’ rent. This is considerably less than the three months of arrears required for mandatory Ground 8.

Landlords should therefore avoid relying on the deposit as their only protection against unpaid rent.

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

According to the EX50 civil court fees list, a county court possession claim costs £415.

If a warrant of possession is needed for county court bailiffs to repossess the property, a further £152 is payable. This brings the total court fees to £567.

These figures do not include solicitor fees, legal advice or other costs associated with the possession process.

Landlords need to act before arrears build up

The 6% increase in possession claims highlights the continuing challenges within the rental market. With average rents rising and tenants facing pressure from household expenses, some landlords may find themselves dealing with more serious arrears.

The Renters’ Rights Act has also changed the process for recovering possession in England, giving tenants more time before the mandatory Ground 8 threshold is reached.

For landlords, the key is to monitor rent payments closely, communicate with tenants as soon as a payment is missed and keep accurate records throughout the tenancy. Early intervention and a realistic repayment agreement may help prevent arrears from escalating into lengthy and expensive court proceedings.

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