How the section 21 changes impacts landlords and tenants
Property management article: What is Section 21, what is changing, and how the Section 21 changes impacts landlords and tenants. How to prepare for the changes
What is section 21?
Section 21 refers to a clause of the housing act 1988. It allows landlords in England to regain possession of a rental property without proving that the tenant has done anything wrong. Therefore, it is widely known as a "no-fault eviction".
Under the current rules, a landlord can serve a section 21 notice giving at least two months notice. If the tenant does not vacate within this notice period, the landlord can apply to the court for possession of the property. However, the notice is only valid if the landlord has complied with strict legal requirements, including proper deposit protection, provision of a valid epc, gas safety certification, and the government's "how to rent" guide.
Understanding what this act is, forms the foundation for understanding how the section 21 changes, impacts landlords and tenants moving forward.
What are the proposed section 21 changes?
The government has announced plans to abolish section 21 entirely in England as part of wider rental reform. From 1 May 2026, landlords will no longer be able to evict tenants without providing specific legal grounds.
Instead, landlords will need to rely on section 8 grounds for possession. These grounds include serious rent arrears, anti-social behaviour, breach of tenancy, selling the property, or the landlord moving back into the property. At the same time, fixed-term assured shorthold tenancies are expected to move toward a single system of periodic tenancies, meaning tenants can remain in a property indefinitely unless valid grounds for possession applies.
These reforms fundamentally reshape how these changes impacts landlords and tenants across the private rental sector.
How the section 21 changes impacts landlords
For landlords, the removal of section 21 represents a significant operational shift. Historically, this act has provided reassurance that possession could ultimately be regained, even if a tenancy relationship broke down without clear fault.
Without section 21, landlords must depend entirely on statutory grounds under section 8. This increases the importance of thorough tenant referencing, strong tenancy agreements, and meticulous record-keeping. Any gaps in documentation could weaken a possession claim.
Another concern is court delays. If possession cases increase and court systems remain under pressure, landlords may experience longer timelines to recover properties. This directly affects cash flow, especially where rent arrears are involved. Financial resilience and risk planning therefore become essential.
However, how the section 21 changes impacts landlords is not entirely negative. Clearer legal grounds for selling a property or moving back in are expected to be strengthened. Professional landlords who treat property as a structured business, maintain compliance, and manage risk strategically are likely to adapt successfully.
How the section 21 changes impacts tenants
For tenants, the abolition of section 21 is designed to increase housing security. The fear of a no-fault eviction has often discouraged tenants from requesting repairs or challenging unfair treatment. Removing this act aims to create greater confidence and stability in long-term renting.
With periodic tenancies becoming standard, tenants may feel more secure putting down roots. Families can plan schooling and employment with reduced anxiety about sudden eviction.
However, it is important to understand that tenants are not immune from eviction under the new system. Serious rent arrears, anti-social behaviour, or breach of contract can still lead to possession proceedings. The key difference is that landlords must now demonstrate a legitimate reason.
Ultimately, how the section 21 changes impacts tenants centres on security balanced with responsibility.
How landlords and tenants can prepare
Preparation is critical as these reforms approach implementation.
Landlords should review their compliance processes immediately. Ensuring that deposits are correctly protected, safety certificates are valid, and tenancy documentation is robust. These steps will reduce future risk. Improving affordability checks and referencing procedures can significantly lower exposure to rent arrears disputes. Many landlords are also exploring rent guarantee insurance and professional property management to reduce uncertainty.
Tenants should equally understand their responsibilities. Paying rent on time, maintaining open communication with landlords, and documenting repair issues appropriately will remain essential under the new system. Greater security does not remove contractual obligations.
Being proactive now will reduce stress later, regardless of which side of the tenancy agreement you sit on.
Can landlords still rent out with reduced risk?
A common concern when discussing the section 21 changes and its impact, is whether renting property will become too risky. This depends on the approach taken by landlords and the level of compliance maintained.
Risk reduction will rely less on broad eviction powers and more on process, due diligence, and structured management. Landlords who approach letting with clear systems, financial buffers, and professional standards can continue to operate confidently. The reforms do not eliminate profitability; they shift the emphasis toward accountability and preparation.
The future of the private rental sector
The question of how the section 21 changes impacts landlords and tenants reflects a broader transformation in England's rental market. The sector is moving toward increased regulation, greater transparency, and stronger tenant security.
For landlords, the focus will be on professionalism, compliance, and strategic risk management. For tenants, the reform offers greater stability while maintaining clear expectations around behaviour and payment.
Change in property law can create uncertainty. But for those who prepare early and understand the legal landscape, the new framework can still support a stable and sustainable rental market.
