Section 21 Is Going: What Landlords Need to Do Now

Section 21 of the Housing Act 1988 has been the go-to mechanism for residential landlords seeking to regain possession of their properties at the end of a tenancy. It requires no grounds, no breach by the tenant, and no fault. The Renters' Reform Bill will change this fundamentally. No-fault evictions will soon be abolished, and landlords must prepare now for a very different legal landscape.

What is Section 21 and why has it mattered?

Section 21 of the Housing Act 1988 allows a landlord to serve notice to quit on an assured shorthold tenant without needing to establish any grounds for possession. Provided the correct notice period is given (usually two months), the landlord can obtain a court order for possession, and the tenant must leave. The tenant's behaviour is irrelevant. The property's condition is irrelevant. Whether the tenant has paid rent is irrelevant. This has made Section 21 invaluable for landlords who simply wish to end a tenancy and recover their property.

The prevalence of Section 21 has also meant that many landlords have become somewhat complacent about the alternative grounds for possession under Section 8 of the same Act. Those grounds require a landlord to prove a specific breach or ground, but they have always been available. With Section 21 about to disappear, landlords must now familiarise themselves with Section 8 and the various grounds it provides.

The Renters' Reform Bill and the abolition of no-fault evictions

The Renters' Reform Bill, now progressing through Parliament, will abolish Section 21. The timeline for implementation has been subject to discussion, but the Government has indicated that the change will come into force in 2026. Once this happens, landlords will no longer be able to serve a Section 21 notice and obtain possession on a whim. Instead, they will need to rely on the grounds set out in Section 8 of the Housing Act 1988, and those grounds will be significantly expanded.

The Bill also makes changes to the grounds themselves. Some existing grounds have been modified, and new grounds have been introduced. The cumulative effect is that whilst landlords are losing their unrestricted right to possession, they are gaining new tools with which to pursue it. However, these tools require understanding and proper application.

What replaces Section 21: expanded grounds for possession

Under the current law, Section 8 of the Housing Act 1988 sets out the mandatory and discretionary grounds for possession. Mandatory grounds are those where, if the landlord proves them, the court must grant possession. Discretionary grounds are those where the court has discretion and may or may not grant possession depending on whether it considers it reasonable to do so.

The Renters' Reform Bill introduces and amends several key grounds. New grounds have been inserted to allow landlords to recover possession where they wish to sell the property, where they wish to occupy it themselves, and where they require it for specific purposes such as the occupation of an employee. The Bill also introduces a ground for persistent rent arrears, which is tighter than the existing discretionary ground but more straightforward to prove.

Additionally, rent arrears grounds have been amended. The current position, under which a landlord can serve notice without penalty, is changing. There will now be a requirement that landlords should have first sought payment through set procedures and demonstrated good faith. This will slow down the process and require careful documentation and communication.

Practical steps landlords should take now

Landlords with existing tenancies should take several steps immediately. First, audit your portfolio. Identify which of your tenancies are likely to come to an end in the next few years. For those where you might have relied on Section 21, begin thinking now about which Section 8 ground might apply. Is the tenant in arrears? Is there a breach of the tenancy terms? Do you plan to occupy the property yourself or sell it?

Second, review your tenancy agreements. Ensure that they are clear about the obligations placed on the tenant, especially regarding rent payment, upkeep of the property, and any specific restrictions. A poorly drafted tenancy agreement will make reliance on Section 8 grounds significantly harder.

Third, implement robust record-keeping systems. If you are to rely on grounds such as rent arrears or breach of tenancy, you will need to demonstrate the facts clearly through contemporaneous records. Email communication with tenants, photographic evidence of damage, and payment records all matter. Digital systems for record-keeping are now essential.

Fourth, seek specialist advice early. The law in this area will be complex, and the rules will likely be subject to case law interpretation in the months and years after the Bill comes into force. Getting advice at the point of identifying a need for possession, rather than after the fact, will put you in a much stronger position. A pre-action letter setting out your grounds and inviting voluntary surrender costs little but can be very effective.

Impact on existing tenancies and ongoing proceedings

A key question for many landlords is whether Section 21 will continue to apply to existing tenancies even after the Bill comes into force. The Government has suggested that existing tenancies will be treated differently. However, the details remain to be confirmed, and it is possible that any grace period will be limited. Landlords should not assume that Section 21 will remain available indefinitely, even for tenancies granted before the change in law.

For landlords with ongoing possession proceedings, the situation is also uncertain. The legislative provisions will need to address the position of cases already in the pipeline. This is a matter on which specialist legal advice is essential, as the outcome could turn on the precise wording of the transitional provisions.

The end of no-fault evictions represents a significant shift in residential landlord and tenant law. Landlords who prepare now and invest in understanding the new regime will be best placed to manage their portfolios effectively. Those who delay are likely to find themselves at a considerable disadvantage.