Section 21 and the Renters' Rights Act 2026/27: Complete Guide for Landlords

What Is the Renters' Rights Act?

The Renters' Rights Act is a major reform of the private rented sector in England, replacing the assured shorthold tenancy system that has governed most private lettings since 1989 with a single system of periodic assured tenancies. Its central aim is to remove landlords' ability to evict tenants without giving a specific reason, while expanding and clarifying the legitimate grounds landlords can still rely on to regain possession where genuinely needed.

The reform follows several years of consultation and a previous, less far-reaching bill that did not complete its passage through Parliament, and represents one of the most significant changes to landlord and tenant law in England in decades.

The End of Section 21

Section 21 of the Housing Act 1988 previously allowed landlords to evict tenants at the end of a fixed term, or during a periodic tenancy, without giving any reason at all, provided the correct notice and procedure were followed — the so-called "no fault" eviction route. The Renters' Rights Act abolishes Section 21 entirely, meaning landlords can no longer regain possession simply by serving a no-reason notice and waiting out the notice period.

From commencement, any possession claim a landlord wishes to bring must instead rely on one of the specific statutory grounds set out under Section 8 of the Housing Act 1988, several of which have been expanded or newly created specifically to give landlords a fair route to possession in legitimate circumstances, such as wanting to sell the property or move in a close family member.

The Single Periodic Tenancy System

Alongside abolishing Section 21, the Act abolishes fixed-term assured shorthold tenancies for new lettings, moving all private tenancies onto a single system of periodic assured tenancies from commencement, with existing tenancies converting automatically on the relevant transition date rather than needing new paperwork signed by the parties. This means tenants generally can no longer be locked into a fixed term (such as a 12-month contract) in the way was previously standard practice.

In practice, this gives tenants greater flexibility to leave with appropriate notice at any point after the tenancy begins, while landlords gain a corresponding expectation that possession will generally only be available through the Section 8 grounds framework, not simply by waiting for a fixed term to expire.

Possession Grounds Under Section 8

Key grounds landlords can rely on under the reformed system include:

• Landlord wants to sell the property: A specific ground allowing possession where the landlord genuinely intends to sell, subject to a minimum period of occupation having elapsed and appropriate notice
• Landlord or close family wants to move in: Covering the landlord or specified close family members wanting to occupy the property as their main home
• Rent arrears: An expanded mandatory ground where a tenant has accrued a set level of arrears, though the specific threshold and notice period were reviewed as part of the reform
• Anti-social behaviour: Grounds allowing possession where a tenant is engaging in anti-social behaviour, with a reduced notice period reflecting the seriousness of this ground
• Persistent late payment of rent: A discretionary ground where rent is persistently paid late even if not always technically in arrears at any given point

Some grounds are mandatory (meaning the court must grant possession if the ground is proved), while others remain discretionary (meaning the court retains judgement over whether it is reasonable to grant possession even if the ground is technically made out).

New Landlord Obligations

Beyond the tenancy and possession changes, the Act introduces a new Private Rented Sector Database that landlords are expected to register on, providing greater transparency and traceability across the sector, and a new mandatory Private Rented Sector Ombudsman scheme that landlords must join, giving tenants an independent route to resolve disputes without necessarily going to court.

The Act also extends "Awaab's Law" style requirements around timely repairs for health and safety hazards to the private rented sector, and introduces a general prohibition on rental bidding wars, preventing landlords and agents from encouraging prospective tenants to bid above the advertised rent for a property.

Worked Example

A landlord who previously relied on serving a Section 21 notice at the end of each 12-month fixed term to review and potentially replace tenants now finds that route no longer exists. Wanting to sell the property to release equity for retirement, the landlord instead serves notice under the specific "landlord wants to sell" possession ground, following the correct notice period and providing evidence of a genuine intention to sell if the matter is challenged.

Separately, a different landlord dealing with a tenant who has fallen into significant rent arrears relies on the rent arrears possession ground, which — if the arrears meet the required threshold — remains a mandatory ground the court must act on, distinguishing genuine non-payment cases from the no-reason evictions the reform specifically targeted.

Common Pitfalls

• Assuming existing Section 21 notices remain valid indefinitely. Transitional arrangements govern how notices served before commencement are treated; landlords should check the specific transition rules rather than assume an old notice will still work.
• Not evidencing a genuine ground for possession. Grounds such as wanting to sell or move in family require genuine intention, and courts can scrutinise this if a tenant challenges the claim.
• Forgetting the new mandatory registrations. Landlords need to register on the Private Rented Sector Database and join the Ombudsman scheme; failing to do so can restrict the ability to bring a valid possession claim.
• Continuing to offer fixed-term contracts as before. New tenancies move onto the periodic system from commencement, so contracts referencing a fixed term in the old style need updating.
• Not tracking implementation dates for each specific reform element. Different aspects of the Act, such as the Database, Ombudsman and specific ground changes, may commence on different dates through secondary legislation.