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England & WalesUpdated July 2026
Rent Arrears Payment Plan Template —
Generator & Instalment Schedule
A rent arrears payment plan template works best when the instalment schedule is calculated for your specific arrears figure, not copied from a generic table. Enter the amount owed, the instalment size, and a start date below, and the agreement and schedule are built for you. This page also covers the clauses a plan needs, when to use one instead of serving notice, and the mistakes that make plans fall apart.
✓ Automatic instalment schedule✓ Late payment & default clauses included✓ Editable, plain text output✓ Free — no sign-up
Last updated: July 2026Reviewed by: OfficeDraft Property Documentation TeamCoverage: England & Wales
Quick facts
Typical plan length3–12 months
Missed instalments before defaultUsually 2
Written agreement neededYes
Cost to generate£0 (free)
Stops a Section 8 claim?No, on its own
Free · No sign-up · England & Wales
Generate Your Payment Plan
Enter the arrears and instalment amount to build the schedule automatically
Output
Agreement + Schedule
Agreement preview
RENT ARREARS PAYMENT PLAN AGREEMENT This agreement is made between: Landlord: [LANDLORD NAME] Tenant: [TENANT NAME] Property: [PROPERTY ADDRESS] 1. ACKNOWLEDGEMENT OF ARREARS The Tenant acknowledges that as at the date of this agreement, rent arrears of £0.00 are owed to the Landlord in respect of the above property. 2. REPAYMENT SCHEDULE The Tenant agrees to clear the arrears in monthly instalments as set out below, in addition to continuing to pay current rent as it falls due under the tenancy agreement. [Fill in total arrears, instalment amount, and start date above to generate the schedule] 3. LATE PAYMENT No separate late payment charge applies under this agreement, but persistent late payment may still be treated as a breach of this plan. 4. EARLY REPAYMENT The Tenant may repay the outstanding balance in full at any time before the final instalment date without penalty. 5. DEFAULT If the Tenant fails to pay two or more instalments under this plan, or falls into further rent arrears while this plan is in effect, the Landlord may treat this agreement as at an end and pursue recovery of the full outstanding balance, including by serving notice seeking possession on rent arrears grounds. 6. CURRENT RENT This agreement covers only the arrears stated above. It does not vary the Tenant's obligation to pay ongoing rent in full and on time under the tenancy agreement. 7. NO WAIVER Acceptance of instalment payments under this agreement does not waive the Landlord's right to rely on the arrears for any other purpose, including a future possession claim, if the Tenant does not keep to this plan. 8. AGREEMENT TERM This plan begins with the first instalment above and is expected to conclude on [FINAL DUE DATE], subject to full payment being received. SIGNED: Landlord: _______________________ Date: ____________ Tenant: _______________________ Date: ____________
When Should You Use a Payment Plan?
A payment plan works when the tenant has fallen behind but has a genuine ability to pay it off alongside current rent, and both sides prefer to keep the tenancy running rather than end it. It is common where arrears built up over a short period, such as a job loss followed by a return to work, or a delay in a Universal Credit assessment period.
It is a weaker option where arrears are already large relative to the tenant's income, where there is no realistic prospect of repayment, or where the landlord has already lost confidence that the tenant will keep to an agreement. In those situations, a formal notice under Ground 8, 10, or 11 is usually the more appropriate next step.
Essential Clauses
A short agreement covering these six points is stronger than a long one that misses any of them.
Acknowledgement of arrears
A specific figure both parties agree is owed, as at a stated date. Vague amounts cause disputes later.
Repayment schedule
The instalment amount, frequency, and dates, set out as a table rather than a general promise to "pay it off gradually".
Treatment of current rent
A statement that the plan covers only the arrears and does not replace the tenant's obligation to pay ongoing rent in full.
Late payment consequences
What happens, if anything, if an instalment is a few days late — a fixed charge, a grace period, or neither.
Default consequences
What happens if the tenant misses instalments altogether or falls further into arrears while the plan is running.
No waiver of rights
A statement that accepting instalments does not stop the landlord relying on the arrears for a future possession claim if the plan fails.
Sample Payment Schedule
An example schedule for £1,800 in arrears repaid at £300 a month. The generator above builds the same table for your own figures.
| Instalment | Due Date | Amount | Remaining Balance |
|---|---|---|---|
| 1 | 1 August 2026 | £300.00 | £1,500.00 |
| 2 | 1 September 2026 | £300.00 | £1,200.00 |
| 3 | 1 October 2026 | £300.00 | £900.00 |
| 4 | 1 November 2026 | £300.00 | £600.00 |
| 5 | 1 December 2026 | £300.00 | £300.00 |
| 6 | 1 January 2027 | £300.00 | £0.00 |
Late Payment Clause
A late payment clause sets out what happens if a single instalment is a few days late, as opposed to missed altogether. Common approaches include a short grace period of three to seven days with no charge, or a small fixed administrative charge if payment is not received within that window.
Any charge should be proportionate to actual administrative cost rather than set as a deterrent, since a disproportionate or penal charge risks being unenforceable if challenged.
Default Clause
The default clause is what actually gives the plan force. It should state a clear trigger, most commonly missing two consecutive instalments or falling into further arrears while the plan runs, and a clear consequence, typically that the landlord may treat the plan as ended and pursue the outstanding balance in full.
Pair this with a no-waiver statement confirming that accepting instalment payments does not stop the landlord relying on the arrears for a possession claim if the plan fails. Without this, a tenant could argue that accepting payments amounted to the landlord giving up that right.
Signature Requirements
Both the landlord and tenant should sign and date the agreement. Where there is more than one named tenant on the tenancy, every named tenant should sign, since a plan signed by only one joint tenant may not bind the others.
A witness signature is not a legal requirement for this type of agreement, but including one adds a layer of evidence if the agreement is ever disputed later.
Common Mistakes
- ✕Not stating a specific arrears figure, leaving room for later disagreement
- ✕Setting an instalment amount the tenant cannot realistically sustain alongside current rent
- ✕Leaving out what happens to ongoing rent obligations while the plan runs
- ✕Not writing down what counts as a default, so a missed instalment leads to confusion rather than a clear next step
- ✕Agreeing the plan verbally with nothing signed by either party
- ✕Assuming a payment plan alone stops a possession claim, without a written no-waiver clause
Example Completed Agreement
The same agreement filled in for a fictional landlord and tenant, so you can see how the finished document reads.
RENT ARREARS PAYMENT PLAN AGREEMENT Landlord: Margaret Ellison Tenant: James Okafor Property: 14 Marsh Lane, Liverpool, L6 4BJ 1. ACKNOWLEDGEMENT OF ARREARS The Tenant acknowledges that as at 1 July 2026, rent arrears of £1,800.00 are owed to the Landlord in respect of the above property. 2. REPAYMENT SCHEDULE The Tenant agrees to clear the arrears in monthly instalments of £300.00, beginning 1 August 2026, in addition to continuing to pay current rent as it falls due. The plan concludes on 1 January 2027, subject to full payment being received. 3. LATE PAYMENT If any instalment is not paid within 5 days of its due date, a late payment charge of £15.00 may apply to that instalment. 4. DEFAULT If the Tenant fails to pay two or more instalments under this plan, or falls into further rent arrears while this plan is in effect, the Landlord may treat this agreement as at an end and pursue recovery of the full outstanding balance, including by serving notice seeking possession on rent arrears grounds. SIGNED: Landlord: M. Ellison Date: 1 July 2026 Tenant: J. Okafor Date: 1 July 2026
About This Guide
🔄
Updated July 2026
Reflects current practice for rent arrears repayment agreements in England and Wales, alongside the possession grounds under the Renters' Rights Act 2025.
🏠
For landlords and tenants
Written to be useful from either side of the agreement, since a workable plan depends on both parties finding the terms realistic.
⚖️
Educational only
This content is for information and does not constitute legal advice. For a dispute already heading toward court, consult a solicitor or a housing advice service.
Frequently Asked Questions
What is a rent arrears payment plan?▾
A rent arrears payment plan is a written agreement between a landlord and tenant setting out how overdue rent will be repaid in instalments, on top of the tenant continuing to pay current rent as it falls due. It does not replace the tenancy agreement, it supplements it for the specific purpose of clearing the arrears.
Is a rent arrears payment plan legally binding?▾
Yes, once both parties sign it, a payment plan is a contract and can be relied on by either side. It does not need to be witnessed to be valid, though a witness signature can help if the agreement is ever disputed.
Does agreeing a payment plan stop a landlord from serving a Section 8 notice?▾
No. A payment plan is a separate agreement, and accepting instalments does not automatically waive the landlord's right to rely on the arrears for a possession claim if the tenant later breaks the plan. Most agreements state this explicitly under a "no waiver" clause.
What happens if the tenant misses an instalment?▾
This depends on the default clause written into the plan. Most agreements state that missing two or more instalments, or falling into further arrears, allows the landlord to end the plan and pursue the full outstanding balance, including through a possession claim on rent arrears grounds.
Can a landlord charge interest or a late fee on missed instalments?▾
A landlord can include a reasonable late payment charge in the agreement, provided the tenancy agreement or the payment plan itself sets this out clearly and the charge is not disproportionate to the landlord's actual administrative cost. An excessive or penal charge risks being unenforceable.
Should the payment plan be in writing?▾
Yes. A verbal arrangement is difficult to enforce and easy to dispute later. A written agreement with a clear instalment schedule, signed by both parties, gives both sides a shared record of what was agreed.
How long should a rent arrears payment plan last?▾
There is no fixed rule. Plans typically run from a few months to around a year, depending on the size of the arrears and what the tenant can realistically afford alongside ongoing rent. A plan that is too aggressive is more likely to fail and lead straight back to a dispute.
What should I do before agreeing a payment plan?▾
Confirm the exact arrears figure from rent records, check whether the tenant may be eligible for Universal Credit backdating or a Discretionary Housing Payment, and agree an instalment amount the tenant can sustain alongside current rent rather than the maximum the landlord would prefer.
Can a tenant repay the arrears early?▾
Yes, unless the agreement specifically states otherwise. Most payment plans allow the tenant to clear the remaining balance in full at any point without penalty, since this benefits both sides.
Official Sources
Related Guides on OfficeDraft
→→→→→→→→→→
Section 8 Notice — Rent Arrears
The formal notice route if a payment plan is not agreed or later breaks down.
Ground 8 — Mandatory Rent Arrears
The mandatory possession ground that applies once arrears reach the statutory threshold.
Ground 10 — Some Rent Arrears
The discretionary ground for arrears below the Ground 8 threshold.
Ground 11 — Persistent Delay in Paying Rent
Relevant if a tenant has a pattern of late payment even where arrears are currently cleared.
Section 8 Notice Generator
Generate a Form 3A notice if a payment plan is not the right route for your situation.
Section 8 Multiple Grounds Generator
For arrears combined with another issue, such as anti-social behaviour or property damage.
Renters' Rights Act — Complete Guide for Landlords
Background on the wider law changes affecting rent arrears and possession since 1 May 2026.
Universal Credit Delay & Rent Arrears
Why arrears often build up around Universal Credit assessment periods, and how that affects a payment plan.
Tenant Won't Leave After Section 8 Notice
What happens if a payment plan fails and a notice has already been served.
Form 3A — How to Fill It In Correctly
Guidance on the notice form itself, for when arrears escalate beyond an instalment plan.
Legal Disclaimer
This page is provided for educational and informational purposes only and does not constitute legal advice. It summarises common practice for rent arrears payment plans in England and Wales as at July 2026 and may not reflect subsequent legislative or judicial changes. Individual tenancy agreements may vary the position described here.
Reviewed by the OfficeDraft Property Documentation Team, last updated July 2026. OfficeDraft is not a law firm and does not provide regulated legal services. For a dispute already heading toward court, consult a solicitor or the GOV.UK guidance on evicting tenants.
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Generate My Payment Plan →Covers: Instalment schedule · Late payment clause · Default clause · Signatures