The End of Section 21: How the Renters’ Rights Act Changes Possession

Section 21 no-fault evictions are gone under the new Renters' Rights Act.

From 1 May 2026, property managers can only regain possession using Section 8 grounds. That means proving fault: arrears, antisocial behaviour, property damage, or specific circumstances like selling the property.

This means no more serving two months' notice and regaining possession. Every eviction now requires evidence, court time, and a legally recognised ground.

Why this matters for letting agencies:

Longer Void Periods

The new legislation will likely result in void periods extending. Currently, the high volume of court backlogs already stretch possession cases to four months or longer. Under the new terms, a tenant can contest the eviction and the time from notice to vacant possession can rise to over six months.

Harder Revenue Forecasting

Revenue forecasting becomes much harder to plan and predict. Landlords relied on Section 21 to regain properties between tenancies, plan refurbishments, or restructure portfolios. Now this process is far less flexible than before.

Compulsory Audit Trail

Documentation becomes critical. There is no leeway when it comes to weak records, missing repair logs, or incomplete communication trails. Letting agents and landlords must ensure they have full, comprehensive audit trails of their properties to prevent possession claims from crumbling.

The new possession grounds you'll actually use:

Ground 1A: selling the property

Landlords can serve notice if they intend to sell and must provide proof of genuine intent to sell, like a signed marketing agreement. However, there's a catch. They can't use it in the first 12 months of a tenancy and, it requires four months' notice, double the old Section 21 period.

After notice expires, the property can't be re-let or listed on Airbnb for 12 months. The penalty for breaching the Ground 1A re-letting restriction is significant: landlords can face either criminal prosecution or a civil penalty of up to £40,000 imposed by the local authority.

This ground adds friction to portfolio exits. Landlords planning to sell need longer lead times, better documentation, and tighter coordination with agents.

Ground 8: rent arrears

Ground 8 applies when arrears reach three months. Previously, landlords could act at two months. The notice period extends from two weeks to four weeks, adding more delay to an already slow process. If the raised threshold is met, courts must grant possession.

Arrears caused by Universal Credit (UC) processing delays don't count toward the three-month threshold. If a tenant's UC claim is stuck in the system and they're entitled to receive housing costs, those arrears cannot be used to evict.

For agencies managing properties with benefit-recipient tenants, this means tracking UC status separately. You need to know when a claim was submitted, when payments should start, and whether delays are legitimate or tenant-driven. These details are necessary for a repossession case.

Ground 4A: student properties

Student landlords can regain possession for the next academic year, but only if they serve notice by 31 May 2026. If this deadline is missed, the tenant can remain in the property.

This is a discretionary ground, not mandatory, meaning judges can refuse possession even when landlords meet all the technical requirements. Unlike mandatory grounds where courts must grant possession if criteria are met, discretionary grounds give judges full authority to deny eviction based on reasonableness and tenant circumstances. One missed notice can invalidate your claim for an entire year.

The shift from Section 21 to fault-based possession changes completely how property managers handle tenancy terminations. Longer timelines, stricter evidence requirements, and court backlogs mean you need robust systems for documenting. Agencies and landlords that rely on manual processes or scattered records will struggle to meet the new standards.

LightWork AI is here to help:

Our platform integrates seamlessly with your PMS/CRM to track, log, and timestamp every communication, repair request, and payment. Each interaction automatically updates your system, maintaining a comprehensive, always-accessible audit trail. When a possession case goes to court, a complete, defensible record is already in place, fully documented and ready to export.

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