The Abolition of Section 21 and Its Implications for Landlords and Tenants

The private rented sector in England stands on the threshold of a significant legislative transformation. With the imminent enactment of the Renters’ Rights Bill, the long-debated practice of “no-fault” evictions under Section 21 of the Housing Act 1988 is set to be abolished. This reform heralds a more equitable and transparent framework for both tenants and landlords.

Current Legislative Status

As of June 2025, the Renters’ Rights Bill has successfully passed through the committee stage in the House of Lords and is anticipated to receive Royal Assent by the summer. The legislation will formally eliminate Section 21 evictions and introduce a revised tenancy structure aimed at fostering stability for tenants while ensuring procedural clarity for landlords.

What’s Changing After Section 21 is Abolished?

No More “No-Fault” Evictions

  • Landlords can no longer evict tenants without a valid reason.
  • They must now use specific legal grounds (e.g. wanting to sell the property, serious rent arrears, or tenant misconduct).

All Tenancies Become Periodic

  • Fixed-term tenancies will be replaced by periodic tenancies. This will happen immediately and overnight and affect existing contracts as well as any new contracts. 
  • This means:
    • Tenants can leave with two months’ notice at any time.
    • Landlords must give at least four months’ notice in most cases, and only for approved reasons.

More Security for Tenants

  • Tenants can challenge poor conditions or unfair rent increases without fear of eviction.
  • There are protections against landlords using rent hikes to force tenants out.

New Grounds for Eviction

  • A clear list of reasonable grounds for eviction will be used instead of Section 21.
  • Examples include:
    • Landlord or close family member wants to move in.
    • Property is being sold.
    • Serious breach of tenancy by the tenant.

Rent Increases Can Be Challenged

  • Tenants can appeal rent increases they believe are excessive or used to pressure them to leave.
  • An independent tribunal can decide if the increase is fair.

New Landlord Ombudsman

  • A new Private Rented Sector Ombudsman will handle tenant complaints quickly and fairly.

No More “No-Fault” Evictions

  • Landlords can no longer evict tenants without a valid reason.
  • They must now use specific legal grounds (e.g. wanting to sell the property, serious rent arrears, or tenant misconduct).

Implications for Landlords

While the abolition of Section 21 represents a departure from longstanding practice, the new system offers several benefits to conscientious landlords:

  • Legal Clarity: The revised framework delineates acceptable grounds for possession, thereby reducing ambiguity and potential litigation.
  • Enhanced Tenant Relations: A more transparent system may foster improved, long-term relationships between landlords and tenants.
  • Strengthened Section 8 Provisions: The grounds under Section 8 will be expanded to include property sale and landlord reoccupation, ensuring landlords retain the ability to reclaim possession when justified.
  • Mandatory Landlord Register: A national register will be introduced to elevate professional standards and deter non-compliant actors.
  • Dispute Resolution Mechanism: A newly established Ombudsman will offer an impartial forum for resolving disputes without recourse to costly legal proceedings.

 Key Implications for Tenants

The forthcoming changes are designed to enhance tenant security and empower renters with enforceable rights:

  • Abolition of Arbitrary Evictions: Landlords will be required to cite a valid, legally defined reason to terminate a tenancy.
  • Codified Grounds for Possession: Evictions will be permissible under specific circumstances, including:
    • Persistent non-payment of rent
    • Serious damage to property or anti-social conduct
    • The landlord’s intention to sell or occupy the property
  • Transition to Periodic Tenancies: All Assured Shorthold Tenancies (ASTs) will convert to rolling periodic agreements, thereby eliminating fixed-term constraints.
  • Initial Protection Periods: New tenancies will include a 12-month period during which landlords may not seek possession for personal use or sale, ensuring early-stage stability.

Policy Perspectives: Labour vs. Conservative Approaches

Labour Government’s Renters’ Rights Bill (2025):

  • Immediate abolition of Section 21, without delay for court reform
  • Annual rent increase limits and tribunal access for disputes
  • Mandatory landlord registration
  • Protections against discrimination and retaliatory evictions
  • Right to request pets, subject to reasonable conditions
  • Extension of Awaab’s Law to private rentals
  • Four-month notice periods for certain evictions
  • National Ombudsman scheme for dispute resolution

Conservative Party’s Previous Proposal (Renters Reform Bill):

  • Conditional abolition of Section 21, contingent on court improvements
  • No rent controls; market-driven pricing
  • Voluntary property portal
  • Flexible tenancy terms
  • Emphasis on simplifying Section 8 possession grounds

Looking Forward

The abolition of Section 21 marks a pivotal moment in the evolution of England’s housing legislation. Tenants will benefit from enhanced security and the ability to assert their rights without fear of reprisal. Landlords, in turn, will operate within a clearer, more professionalised system that supports legitimate property management.

As the new legal framework comes into force, it is imperative that all parties remain informed and prepared to navigate this new era in residential tenancy.

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