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17-09-2026
The Renters Rights Act 2025 – Why Landlords and Tenants face more litigation, not less
On 1 May 2026, one of the biggest reforms of residential lettings in a generation came into force. Section 21 was abolished, assured shorthold tenancies have been replaced with periodic tenancies, and the Government introduced a new framework designed to give tenants greater security while preserving landlords’ legitimate rights to recover possession where justified.
The objective is difficult to argue with. Few would suggest that responsible tenants should live with the constant uncertainty of a “no-fault” eviction.
The issues and effects of this legislation are discussed in this article.
Four months on, the emerging issue is not whether landlords still have grounds for possession, but whether those rights can be exercised efficiently within a far more technical regime and an already overburdened Court system. For landlords, the Renters Rights Act has not removed litigation, if anything, it has made procedure more important than ever.
The end of Section 21
For years, Section 21 provided a relatively predictable route to recovering possession at the end of an assured shorthold tenancy. That route has now gone.
Today, the majority of private residential tenancies are assured periodic tenancies, meaning landlords must rely upon one or more statutory grounds under the amended Housing Act 1988. Those grounds include selling the property, moving in themselves, serious rent arrears, anti-social behaviour and several other mandatory or discretionary circumstances.
This is a significant shift. Possession is no longer about waiting for a tenancy to expire, it is about demonstrating that a statutory ground exists and proving it in accordance with the legislation.
In residential litigation, a landlord can have an entirely legitimate reason for recovering a property and still lose valuable time and costs through a procedural mistake.
Has Section 8 simply replaced Section 21?
Many landlords understandably assume that Section 8 has become a straightforward substitute for Section 21.
In reality, the possession process is considerably more nuanced. The Renters Rights Act has expanded and amended numerous possession grounds, introduced new eligibility requirements and altered notice periods depending upon the ground relied upon. Some grounds cannot be used during the early months of a tenancy, while others require landlords to satisfy specific conditions before proceedings are even issued.
In practical terms, the quality of preparation has become just as important as the merits of the claim.
We are already seeing situations where landlords delay serving notice, rely on the wrong ground, or overlook documentary requirements that could have been addressed at the outset. Those errors are often avoidable and considerably less expensive to prevent than to rectify after proceedings have begun.
Rent arrears, an expensive problem
Perhaps the least appreciated change concerns rent arrears. The mandatory rent arrears ground now generally requires at least 13 weeks or three months rent arrears (depending on whether rent is payable weekly or payable monthly) both when notice is served and at the possession hearing, subject to the statutory provisions.
For landlords, this creates an obvious commercial problem.
A property generating £2,000 per month will need to accumulate £6,000 in unpaid rent before this mandatory ground is available. Add legal costs, mortgage payments, insurance and service charges, and the financial exposure can become substantial long before possession is obtained.
The conclusion is not that landlords should immediately litigate. Quite the opposite. Early legal advice frequently identifies the strongest possession strategy, preserves evidence and avoids procedural delays that ultimately increase the overall loss.
Landlords should also be aware that there are two discretionary grounds available where the tenant is in any arrears or has been persistently in arrears during the tenancy. Both only require 4 weeks notice as opposed to the three months needed for the mandatory ground. The fact this is ‘discretionary’ means it is up to the Court to decide whether to grant possession.
The role of the Courts
The legislation changed possession law. It did not increase the capacity of the County Court.
Recent reporting describes waiting rooms filled with possession cases, judges managing multiple matters in a single sitting and, in parts of London, landlords are reportedly facing lengthy waits for enforcement appointments with County Court bailiffs.
Importantly, this affects everyone involved.
Tenants remain in prolonged uncertainty while waiting for claims to conclude. Landlords continue to absorb financial losses despite having statutory grounds for possession. Local authorities frequently advise tenants not to leave until bailiffs enforce an order, creating further pressure on an already congested system.
The result is an uncomfortable reality, a defective possession claim is no longer merely inconvenient, it can delay recovery of a property by several months.
Periodic tenancies have changed investment planning
The abolition of fixed-term assured shorthold tenancies has received less attention than Section 21, but its commercial consequences may prove equally significant.
Without fixed contractual end dates, landlords must now plan property sales, refinancing, redevelopment and family occupation considerably further in advance. Possession strategy has become part of wider portfolio management rather than a decision taken shortly before a tenancy expires.
This is particularly relevant for smaller landlords.
Many are not institutional investors; they are individuals with one or two properties who may be selling because of retirement, changing financial circumstances or rising borrowing costs. Industry commentators have observed that residential letting is becoming less of a passive investment and increasingly a highly regulated commercial activity requiring careful legal compliance.
Outdated tenancy documentation
Another risk receives remarkably little attention.
Many landlords continue to use tenancy agreements drafted before May 2026. Whilst many remain legally effective, provisions dealing with fixed terms, possession expectations and certain contractual mechanisms no longer reflect the current statutory framework.
An outdated agreement will not necessarily invalidate a tenancy. However, ambiguous drafting has a habit of becoming expensive once proceedings are contested.
A comprehensive review of tenancy documentation is often one of the most cost-effective forms of risk management available to residential landlords.
What should landlords do differently?
The Renters’ Rights Act does not prevent landlords from recovering possession. It requires them to do so differently.
Legal advice should be considered before serving notice where the intention is to:
- recover possession in order to sell a property;
- rely upon rent arrears or repeated arrears;
- move a landlord or family member into the property;
- pursue possession following anti-social behaviour;
- review tenancy agreements drafted before May 2026; or
- respond to disputes concerning rent increases.
In our experience, the strongest possession claims are those that are prepared most carefully.
A changed landscape
The debate surrounding the Renters’ Rights Act has often been presented as a choice between landlords and tenants. In reality, that is an oversimplification.
Good landlords still need effective legal mechanisms to recover their properties. Good tenants deserve stability and protection from arbitrary eviction. The challenge is ensuring that both objectives operate within a court system capable of delivering timely justice.
What has become evident since May 2026 is that residential possession law has entered a more technical era. Success increasingly depends upon statutory compliance, evidence and procedure rather than assumption or precedent.
For landlords, the concern is no longer whether there is a route to possession, it is whether that route has been navigated correctly.
Contact
If you would like to discuss any of the issues raised in this article, or need advice relating to the issues discussed, please do not hesitate to contact our or Property Department on 020 7625 6003 or by email at info@fgdlaw.co.uk