Since our last post on this topic, what is now the Renters’ Rights Act 2025 came in to law on 27 October 2025 and the government has, today, published the first in a series of guidance on its “roadmap for reforming the private rented sector”. The headline is that Section 21 of the Housing Act 1986 is to be abolished with effect from 1 May 2026 which will end what has become to be known as “no fault evictions” whereby, under the current rules, a landlord can terminate an assured shorthold tenancy at the end of the fixed term by serving at least two months’ notice on the tenant.
The abolition of Section 21 will apply to all existing assured shorthold tenancies and landlords wishing to terminate tenancies under Section 21 will need to serve the relevant notice to do so before 1 May 2026 and, if necessary, will have until 31 July 2026 to apply to the court for a possession order under the current rules. If a landlord fails to make an application to the court before that date, the existing procedure will no longer be available and the new statutory grounds for possession and procedures will apply.
After 1 May 2026, all new residential tenancies created under the Housing Act 1988 will be assured tenancies to which the statutory mandatory grounds for possession will apply. These are set out at Schedule 2 of the Act and will be amended and added to by what is Schedule 1 of the Renters’ Rights Act. New mandatory grounds for possession include where the landlord wishes to sell the property; where the landlord or a close family member wishes to use it as their own principle residence; or where it is required for an agricultural worker. Other new grounds include where a tenant is occupying in breach of a planning condition and the local planning authority has taken enforcement action and where a head landlord is terminating the head tenancy – as will be the case, for example, with worker cottages included in a farm tenancy.
Existing grounds for possession will remain and include where the tenant is causing damage to the property and/or contents; antisocial behaviour and where there are arrears of rent. However, in respect of the latter, the amount of rent arrears before action can be taken is being increased from eight to thirteen weeks where rent is paid weekly, and from two to three months where rent is paid monthly.
The abolition of Section 21 and the introduction of rent controls are likely to result in significantly more applications being made to the court and to the tribunal. In recognition of that, the government says that it has been working with the courts and tribunal service to introduce a streamlined digital application service and to provide additional resources to increase capacity. However, given the existing delays within the courts and tribunals system, there is a concern that, even with additional resources, the process of obtaining possession under the mandatory statutory grounds may be slow.
Other key changes include limiting rent reviews to no more than market value and no more frequently that 12 months, a prohibition on a landlord or agent accepting more than the advertised rent when letting a property (which is designed to prevent bidding wars between tenants competing to secure a property), and capping the amount of rent payable in advance to no more than one month’s worth. The limit on paying rent in advance will be counter-intuitive for some tenants who, for personal circumstances, prefer to pay their rent as an up-front lump sum.
We will continue to review guidance as and when it emerges and will keep our readers informed.
