It is understandably confusing and stressful when a letting agent tells you they will not issue a new tenancy contract until you pay two years’ worth of arrears. Many tenants do not realise what landlords can and cannot demand, and it can be difficult to know where you stand when the arrears have built up over a long period. Gaining clarity on the legal framework can help you understand what options you have and what steps to take next.
Understanding the issue or context
You have been told by the agent that there will be “no question of a new contract” unless you first pay two years of arrears. This raises understandable concerns:
- Are they legally allowed to make this a condition?
- Can they refuse renewal if arrears exist?
- What is the proper process for dealing with rent arrears?
- Is it legal to demand repayment of such a large amount at once?
When arrears have accumulated over a long period, communication often becomes strained, and tenants are left feeling uncertain about their rights.
The legal rules or framework
1. Arrears do not automatically prevent a renewal
There is no law that requires a landlord to refuse a new contract if arrears exist.
Likewise, there is no law requiring them to offer a new contract at all.
A landlord can choose:
- to renew the tenancy,
- to offer a new agreement on conditions, or
- to allow the tenancy to continue periodically, or
- to take steps to recover arrears.
But they must follow proper legal procedures.
2. No fixed period exists for repayment of arrears
UK law does not specify a repayment timescale for rent arrears.
Instead, the landlord must:
- discuss repayment proposals with you,
- act reasonably,
- avoid imposing arbitrary or punitive conditions.
A demand that two years’ arrears must be cleared immediately is not legally required — it is a choice by the landlord or agent.
3. Arrears must be handled through proper processes
If rent arrears exist, the landlord can:
- agree a repayment plan,
- seek a county court judgment for the arrears, or
- serve notice (Section 8 or Section 21, depending on the tenancy type).
But they cannot simply demand payment without following the correct legal steps.
4. Renewal of a contract is a commercial decision, not a legal requirement
A landlord is free to say:
- “We will renew the tenancy only if arrears are cleared.”
But this does not change your underlying legal rights. You still have:
- protection from unlawful eviction,
- rights during any notice period, and
- the ability to negotiate repayment terms.
5. You are still a tenant, even without a new written contract
If your fixed-term tenancy expired but you remained in the property and continued paying rent, you normally move into a periodic tenancy.
This gives you ongoing legal rights, even if the agent refuses to issue a new written agreement.
Practical steps to take (step-by-step guidance)
- Ask the agent for the demand in writing
This ensures you have a clear record of what they are asking for. - Request confirmation of the arrears amount
Ask for:- a full rent statement,
- dates owed,
- amounts outstanding,
- any charges applied.
- Propose a realistic repayment plan
You can offer instalments based on what you can genuinely afford. - Clarify tenancy status
Ask the agent to confirm:- whether your original contract has expired,
- whether you are now on a periodic tenancy,
- whether any notice has been served.
- Keep communication calm and factual
This helps avoid escalation and shows you are acting reasonably. - Seek advice if any notice is served
Notices must follow strict legal rules. A solicitor can check if it is valid. - Keep all correspondence and rent statements
This is important if any dispute arises.
Common pitfalls to avoid
- Assuming you must pay two years of arrears immediately
The law does not require this. - Believing that refusal to issue a new contract removes your rights
You still have tenancy rights under a periodic agreement. - Not asking for a breakdown of arrears
Errors are common, especially over long time periods. - Ignoring letters or emails because the demand feels unreasonable
Responding calmly strengthens your position. - Assuming eviction is automatic
Landlords must follow a strict legal process.
Frequently Asked Questions
Can a landlord refuse to give me a new contract until I pay arrears?
Yes — they can make that a condition. But they do not have the right to force immediate repayment outside proper legal processes.
Can they demand repayment of two years’ arrears all at once?
They can request this, but the law does not require you to agree. Courts normally expect realistic repayment plans.
Does refusing a new contract mean I must leave immediately?
No. If your fixed term has ended, you usually move to a periodic tenancy and retain rights.
Is the demand enforceable?
Not unless they pursue it through the court or negotiate a repayment plan with you.
Can I be evicted for arrears?
Possibly, but only through a formal process.
You cannot be removed without proper legal notice and a court order (in most cases).
Should I get legal advice?
Yes, especially if a notice is issued or if arrears are disputed.
Conclusion
If you’d like to understand your rights and options in plain English, visit LegalGuidance.org — a free resource powered by Martin Taggart Legal Consulting.
For professional, fixed-fee advice from a UK solicitor, visit MartinTaggart.com.
This information is general guidance only and not legal advice. For personalised support, please contact Martin Taggart Legal Consulting.