For decades, landlords in England have relied on Section 21 notices—commonly known as “no-fault evictions” – as a way to regain possession of their properties without having to give a reason. That’s about to change.
The government’s Renters’ Rights Bill is set to abolish Section 21 and bring in sweeping reforms to the private rented sector. These changes are designed to give tenants greater security, but they will also reshape how landlords manage their properties.
So, what’s changing, and what does it mean for you as a landlord?
What’s Happening to Section 21?
Section 21 notices are being scrapped entirely. Landlords will no longer be able to ask tenants to leave without giving a valid reason. Instead, any eviction will need to be carried out under Section 8, or new grounds that require you to prove your case.
This marks a major shift away from the flexibility landlords have had since 1988.
Key Changes Landlords Need to Know
Here’s a breakdown of the main reforms in the Renters’ Rights Bill:
- No more fixed-term tenancies: All new and existing assured shorthold tenancies (ASTs) will eventually convert into rolling periodic tenancies.
- Valid reasons needed for eviction: You must prove grounds such as rent arrears, anti-social behaviour, selling the property, or moving in yourself.
- Rent increases capped: Landlords can only raise rent once per year, with two months’ notice, and tenants can challenge rises at tribunal.
- Limits on rent in advance: You won’t be able to demand more than one month’s rent upfront. Councils will have the power to fine landlords who break this rule.
How This Affects Landlords
These reforms will affect landlords in several ways:
- More paperwork and process – Evictions will take longer, requiring legal evidence and court action.
- Greater compliance risk – Every document, safety certificate, and deposit scheme record will need to be correct to avoid disputes.
- Rental contracts need updating – Clauses about fixed terms and rent increases will need to be rewritten.
- Financial planning changes – With stricter rules on rent rises and longer eviction processes, cashflow management becomes more important than ever.
- Tenant selection – Expect landlords to be more cautious with referencing and guarantors, knowing it will be harder to remove problem tenants.
What Should Landlords Do Now?
- Review your current tenancy agreements and prepare to switch to periodic contracts.
- Strengthen your record-keeping so you can evidence any issues if eviction is necessary.
- Budget for legal costs and longer timelines if you need possession.
- Consider your rent strategy – be realistic but ensure you’re protected from inflation under the new rules.
- Stay informed – the law is not yet in force, but it’s moving quickly.
Final Thoughts
The end of Section 21 is one of the biggest changes in the private rental sector in a generation. While it reduces flexibility for landlords, it also encourages a more professionalised approach to property management.
If you’re prepared – through better contracts, strong tenant vetting, and clear financial planning—you can continue to thrive under the new system.
At Cleary Property Solutions, we keep a close eye on these changes so our investors and partners can stay ahead of the curve.
