Understanding Section 8 and Late Rent: How the Renters' Rights Bill Affects Landlords

2025-07-22

As landlords and letting agents, we value tenants who consistently pay their rent on time. However, life can be unpredictable, and even the most reliable tenants may face unexpected challenges that result in rent arrears. The Renters' Rights Bill introduces significant updates that impact how landlords can regain possession of a property when tenants fall behind on rent.

Understanding the changes to Section 8 of the Housing Act 1988 is crucial for effective and lawful tenancy management.

What Is Section 8?

Section 8 is a legal process under the Housing Act 1988 that allows landlords to seek possession of a property if certain conditions—known as grounds for possession—are met.

Mandatory Grounds: If proven, the court must grant possession (e.g. Ground 8).
Discretionary Grounds: The court may grant possession if it finds it reasonable (e.g. Ground 10).

Unlike a Section 21 notice (which is being abolished under the Renters' Rights Bill), a Section 8 notice must state the specific ground(s) relied upon.

Form Required: Landlords must use Form 3 (Assured Tenancy Form) to serve a valid Section 8 notice.

Link: Download Form 3 from GOV.UK

Ground 8 – “Serious Rent Arrears” (Mandatory Possession)

Ground 8 is the most common route used when tenants have built up significant rent arrears. This is a mandatory ground, which means the court is required to grant possession if the conditions are met.

Key Changes Under the Renters' Rights Bill:

Notice Period: Increases from 2 weeks to 4 weeks.
Rent Arrears Threshold: The tenant must owe at least 3 months’ rent both at the time of notice and at the court hearing.

In effect, landlords must wait until the tenant is at least 4 months in arrears before they can serve a valid notice.

Universal Credit Exception:

If the tenant’s arrears are caused by delays in receiving Universal Credit, and they are eligible for the benefit, then Ground 8 cannot be used. In these situations, landlords may wish to consider:

Requesting a guarantor
Accepting tenants with stable employment
Securing rent protection insurance

Ground 10 – Any Rent Arrears (Discretionary Possession)

Ground 10 applies when any amount of rent is unpaid—there is no minimum threshold. However, as a discretionary ground, the court will assess whether it is reasonable to grant possession based on the circumstances.

Key Details:

Notice Period: Now extended to 4 weeks.
Conditions: Some rent must be unpaid at both the time of serving notice and at the time of the hearing.

This ground offers a path to early intervention but provides less certainty than Ground 8 due to the court’s discretion.

Section 8 Eviction Process: Step-by-Step

Serve Form 3 with the correct grounds for possession.
Wait for the notice period to expire (typically 4 weeks for rent arrears).
If the tenant does not vacate, apply to the court for possession.
Attend the court hearing.
If possession is granted, and the tenant still refuses to leave, apply for enforcement via:
- County Court Bailiffs, or
- High Court Enforcement Officers (HCEOs) A final 14-day notice of enforcement must be given before eviction occurs.

Summary Table – Section 8 Grounds for Rent Arrears

Ground Type Notice Period Requirements Changes Under the Bill Ground 8 Mandatory 4 weeks 3 months’ unpaid rent (at notice and hearing) Longer notice, higher threshold Ground 10 Discretionary 4 weeks Any unpaid rent (at notice and hearing) Longer notice only

Key Considerations for Landlords

Monitor rent payments regularly and keep clear records.
Communicate early with tenants when payment issues arise.
Consider mitigation strategies such as guarantors or rent guarantee insurance.
Understand that Universal Credit delays may limit your ability to regain possession under Ground 8.

With the abolition of Section 21, the use of Section 8 will become increasingly important. Landlords must be familiar with the correct processes and updated legal thresholds introduced by the Renters' Rights Bill to act within the law and protect their properties.