For decades, Section 21 ‘no-fault’ evictions have been a cornerstone of the private rented sector, offering landlords a relatively straightforward path to regaining possession of their property. However, with the progressive Renters’ Rights Bill now firmly established in the legislative pipeline (with implementation expected from late 2025/early 2026), the era of Section 21 is drawing to a close. This marks the most significant shift in landlord-tenant law in over 30 years, and for London landlords, understanding the implications for regaining possession is paramount.
This in-depth guide will walk you through the abolition of Section 21, the new mandatory periodic tenancies, and the expanded Section 8 grounds that will become your sole avenue for possession.
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The Abolition of Section 21: What It Truly Means
The core of the reform is simple: landlords will no longer be able to evict tenants without a specified legal reason. The days of issuing a two-month notice without justification are ending. This change aims to provide greater security and stability for London tenants, empowering them to challenge poor conditions or unfair practices without the fear of arbitrary eviction.
Key Impacts of Section 21 Abolition:
- No More “No-Fault” Evictions: Every eviction will now require a valid legal ground, which you must prove if the case goes to court.
- All Tenancies Become Periodic: Fixed-term assured shorthold tenancies (ASTs) will be abolished. All new tenancies will be periodic (rolling month-to-month or week-to-week), and existing fixed-term ASTs will automatically convert to periodic tenancies on a specified implementation date. This means tenancies will continue indefinitely until either the landlord or tenant terminates them using the correct legal procedure.
Action Point for Landlords: This fundamental shift means your tenancy management strategy must adapt. Robust record-keeping and clear communication with tenants regarding any breaches of tenancy terms will be more crucial than ever.
The New Landscape: Relying on Section 8 Grounds
With Section 21 gone, Section 8 of the Housing Act 1988 becomes the only legal route for landlords to seek possession. The Renters’ Rights Bill significantly expands and strengthens these grounds to ensure landlords can still regain their property when legitimate reasons exist.
Section 8 grounds are categorised as either mandatory (where the court must grant possession if the ground is proven) or discretionary (where the court may grant possession if it deems it reasonable).
Key Expanded & Modified Mandatory Section 8 Grounds:
- Serious Rent Arrears (Ground 8 – Amended): This remains a cornerstone ground. The threshold for mandatory eviction will increase from two months to three months of rent arrears, both at the time of serving notice and at the court hearing. The notice period for this ground will also increase from two weeks to four weeks.
- What it means: You’ll need to allow more time for arrears to accumulate before you can serve notice, and the notice period itself is longer.
- Action Point: Implement robust rent collection procedures and early intervention for late payments. Maintain meticulous records of all rent payments and communications.
- Landlord Intends to Sell (New Ground 1A): This is a crucial new mandatory ground. If you genuinely intend to sell the property, you can seek possession.
- Conditions: This ground cannot be used within the first 12 months of a new tenancy. You must give at least four months’ notice. Critically, there will be a restricted period (likely 16 months from notice being served: 4 months notice + 12 months restriction) during which you cannot re-let the property once possession is granted. This is to prevent landlords from using it as a ‘backdoor’ eviction method.
- Action Point: If selling is a potential future plan, be aware of the 12-month restriction on starting a new tenancy and the re-letting prohibition. Plan your sale timeline carefully.
- Landlord or Family Member Moving In (Ground 1 – Amended): You can regain possession if you or a close family member (expanded definition to include parents, grandparents, siblings, children, grandchildren, and their spouses/civil partners) genuinely intend to occupy the property as their main home.
- Conditions: Similar to the selling ground, this cannot be used within the first 12 months of a new tenancy and requires at least four months’ notice.
- Action Point: Ensure your intent to occupy is genuine and be prepared to provide evidence to the court if challenged.
- Anti-Social Behaviour (Ground 7A – Mandatory; Ground 14 – Discretionary): The mandatory ground for severe anti-social behaviour is strengthened, allowing landlords to begin proceedings immediately in serious cases. Discretionary grounds for lesser anti-social behaviour also remain.
- Action Point: Document all instances of anti-social behaviour, including dates, times, nature of incidents, and any evidence (e.g., police reports, neighbour statements).
- Breach of Tenancy Agreement (Ground 12 – Discretionary): For breaches other than rent arrears or anti-social behaviour (e.g., unauthorised sub-letting, property damage), this ground allows you to seek possession.
- Action Point: Ensure your tenancy agreements are clear and comprehensive. Document all breaches and attempts to resolve them with the tenant.
The Eviction Process Under the New Regime
The process for regaining possession will inevitably involve the courts if a tenant does not vacate after a valid Section 8 notice. There will be no ‘accelerated possession order’ option as currently exists with Section 21.
General Steps:
- Identify and Prove the Ground: Ensure you have strong evidence that one or more Section 8 grounds apply.
- Serve a Valid Section 8 Notice: Use the prescribed form, clearly stating the grounds and the required notice period. Any error can invalidate the notice.
- Apply to Court for Possession: If the tenant does not leave by the notice expiry date, you must apply to the county court for a possession order.
- Court Hearing: A judge will review your case. For mandatory grounds, if proven, the court must grant possession. For discretionary grounds, the judge will decide if it’s reasonable to grant possession.
- Possession Order & Bailiff Warrant: If a possession order is granted, and the tenant still doesn’t leave, you will need to apply for a warrant for a court bailiff to legally remove them.
Concerns and Court Reform: A significant concern within the industry is the potential for increased pressure on the court system, leading to longer delays. The government has acknowledged this and committed to improving court processes to handle the anticipated increase in Section 8 claims. However, landlords should still be prepared for the possibility of extended timelines compared to previous Section 21 routes.
Preparing Your London Portfolio
The abolition of Section 21 fundamentally alters how London landlords manage their properties and tenancies. Proactive preparation is key to navigating this new landscape effectively:
- Review and Update Tenancy Agreements: Ensure your agreements are compliant with the new periodic tenancy structure and reflect the updated Section 8 grounds.
- Strengthen Tenant Referencing: With greater tenant security, thorough tenant screening becomes even more vital to minimise future issues.
- Maintain Impeccable Records: Documentation of rent payments, communications, property inspections, and any alleged breaches is critical for any Section 8 application.
- Seek Expert Advice: Don’t hesitate to consult with legal professionals or reputable letting agents specialising in London property law. Their expertise will be invaluable in ensuring compliance and efficient possession processes.
- Consider Rent Protection Insurance: Given the potential for longer eviction timelines for rent arrears, robust rent protection insurance could become an even more valuable safety net.
While the end of Section 21 marks a significant change, by understanding the new rules and adapting your practices, London landlords can continue to operate successful and compliant rental businesses in the evolving market.
Stay informed, seek professional advice where necessary, and embrace these changes as an opportunity to strengthen your position in London’s dynamic rental market.
