Late rent payments — understanding your rights and obligations
Understanding how late rent payments work helps both tenants and landlords navigate this situation properly under English law.
Important disclaimer
This guidance applies to England only. Always check your tenancy agreement for specific terms that apply to your situation. This article covers the standard rules for late rent payments. This information should not be relied upon as legal advice, please seek professional advice if you are unsure.
When is rent considered late?
- Rent is late if not paid by the date specified in your tenancy agreement
- Most agreements specify payment on the same date each month
- Even one day late technically constitutes a breach of contract
Interest on late payments
- The maximum interest rate allowed is 3% above the Bank of England base rate
- Interest can only be charged once rent is overdue (usually after 14 days)
- Interest is accrued daily
Late payment fees - Not permitted
- Landlords cannot charge late payment fees or administration charges
- The only permitted charge for late rent is interest
What can landlords do?
If rent remains unpaid, landlords may:
- Serve a Section 8 notice (grounds 8, 10, or 11) for rent arrears
- Begin possession proceedings if arrears persist
- Use a rent arrears protocol before court action
- Report to credit reference agencies (if agreed in tenancy)
Tenant protections
- Landlords must follow proper legal procedures
- Cannot evict without a court order
- Must accept rent payment even if serving notices
- Vulnerable tenants may receive additional court protection
Avoiding issues
- Set up a standing order for rent day
- Contact your landlord immediately if struggling
- Keep evidence of all payments
- Seek advice from Shelter or Citizens Advice if needed
Communication is key
Most landlords prefer to work with tenants experiencing temporary difficulties. Early, honest communication often prevents formal action.
Remember: This is general guidance under English law. Your tenancy agreement may contain different terms, so always check it carefully and seek legal advice if unsure.