In the spring of 1831, Tennyson's father died, requiring him to leave Cambridge before taking his degree. He returned to the rectory, where he was permitted to live for another six years and shared responsibility for his widowed mother and the family. Arthur Hallam came to stay with his family during the summer and became engaged to Tennyson's sister, Emilia Tennyson.
In 1833 Tennyson published his second book of poetry, which notably included the first version of The Lady of Shalott. The volume met heavy criticism, which so discouraged Tennyson that he did not publish again for ten years, although he did continue to write. That same year, Hallam died suddenly and unexpectedly after suffering a cerebral haemorrhage while on a holiday in Vienna. Hallam's death had a profound effect on Tennyson and inspired several poems, including "In the Valley of Cauteretz" and In Memoriam A.H.H., a long poem detailing the "Way of the Soul".
Tennyson and his family were allowed to stay in the rectory for some time, but later moved to Beech Hill Park, High Beach, deep within Epping Forest, Essex, about 1837. Tennyson's son recalled: “there was a pond in the park on which in winter my father might be seen skating, sailing about on the ice in his long blue cloak. He liked the nearness of London, whither he resorted to see his friends, but he could not stay in town even for a night, his mother being in such a nervous state that he did not like to leave her...". Tennyson befriended a Dr Allen, who ran a nearby asylum whose patients then included the poet John Clare. An unwise investment in Dr Allen's ecclesiastical wood-carving enterprise soon led to the loss of much of the family fortune, and led to a bout of serious depression. Tennyson moved to London in 1840 and lived for a time at Chapel House, Twickenham.