One of the questions I get asked most by new landlords is, "What happens if my tenant stops paying rent?"

Most landlords know they can take legal action, but very few realise just how long the process can take, how much it can cost and how much rent they could lose before they ever get their property back.

Since the Renters' Rights Act came into force on 1 May 2026, the possession process has become longer and, in many cases, more expensive. If you're relying on your rental income to pay the mortgage or supplement your income, it's worth understanding the potential financial impact before you ever need to use the courts. 

Step 1 – You can't act immediately

Under the new legislation, a landlord relying on mandatory rent arrears grounds cannot begin possession proceedings until the tenant has built up three months' rent arrears. Once the notice is served, the tenant must then be given four weeks' notice before court proceedings can begin.

In reality, this means a tenant could be around four months in arrears before you are even able to ask the court for possession. During this time, the rent may have completely stopped, yet the mortgage, insurance and maintenance costs continue. 

Step 2 – Serving the legal notices

Many landlords assume serving a notice is simply downloading a form from the internet.

Unfortunately, getting it wrong can result in delays of months or even having to start the process all over again.

Typical professional costs include:

• Section 8 Notice (rent arrears): approximately £300 
• Section 8 Notice (other grounds): approximately £384 
• Guarantor Letter Before Claim: approximately £240 

Step 3 – Going to court

If the tenant still doesn't leave or clear the arrears, possession proceedings are usually the next step.

Typical legal costs are:

• Section 8 possession proceedings for rent arrears: around £1,228 
• Proceedings including possession and rent arrears recovery: around £1,628 

These figures generally include attendance at the first hearing only. If the case is defended or further hearings are required, additional legal fees are likely to be incurred.

Step 4 – Even after winning, you may still have to wait

Obtaining a possession order doesn't necessarily mean the tenant leaves.

If they remain in occupation, enforcement action becomes necessary, bringing further costs such as:

• County Court Bailiff: £328
• Transfer to the High Court: £279 
• Postponement of eviction: £396 

Again, these are additional expenses on top of the legal process already undertaken. 

Then there's the biggest cost of all…

Legal fees are only part of the story.

The biggest financial loss is often the rent that isn't being paid while the court process runs its course.

According to HomeLet and Let Alliance's latest CourtWatch statistics:

• The average rent lost per possession claim is £8,684 
• Some landlords have experienced losses of over £27,000 
• Several courts are now experiencing average delays of five to seven months, with Chelmsford among the courts where waiting times have increased. 

When you combine four months of arrears before proceedings can even begin, months waiting for a hearing, enforcement delays and legal costs of £2,000–£3,000, the financial impact can become significant very quickly. 

Is there a way to reduce the risk?

No landlord expects their tenant to stop paying rent.

The vast majority of tenancies run without issue, but when something does go wrong, the consequences can be expensive.

This is exactly why many landlords choose Rent Guarantee and Legal Expenses Cover. For a relatively modest monthly cost, it can provide protection against lost rent while also covering many of the legal costs involved in recovering possession, subject to the policy terms. 

Speak to Boydens

At Boydens, we always hope you'll never need to rely on rent guarantee insurance. However, with longer notice periods, increased court delays and higher legal costs now forming part of the new possession process, we believe every landlord should understand the risks before deciding whether the protection is right for them.

If you'd like to find out more about our partnership with Let Alliance for Rent Guarantee cover, or simply want to review the protection currently in place for your property, get in touch with one of our team. A short conversation today could save thousands of pounds tomorrow.