With the new Renter's Reform Bill changes, what's a Section 21 now called and can I still use it to evict a tenant in an assured shorthold tenancy if I plan to sell the property myself after they leave?

Quick Answer

The Renters' Rights Bill will abolish Section 21 evictions. There will be new, legally defined grounds for possession, including a ground for selling, but these will be subject to strict conditions and a new process, not a simple 'no fault' notice.

## What is a Section 21 Now Called, and Can I Still Use It to Evict a Tenant? As of 1 May 2026, the Renters' Rights Act 2025 has abolished Section 21 'no-fault' evictions in England. This means the term 'Section 21' as a mechanism for ending an assured shorthold tenancy (AST) without specific grounds has ceased to be applicable. Landlords can no longer serve a Section 21 notice to regain possession of their property. Instead, they must rely on specific, legally defined 'grounds for possession' to end a tenancy, many of which have been modified or introduced by the new Act. For an investor planning to sell a property with a tenant in situ, the process has changed significantly. While the ultimate goal of regaining possession to sell remains achievable, the route is now through the courts, using one of the new mandatory possession grounds. This shifts the burden of proof more squarely onto the landlord to demonstrate a legitimate reason for seeking possession, unlike the previous Section 21 process which did not require a reason. Understanding these new grounds is critical for any landlord managing an AST in England. ## Does The Abolition of Section 21 Impact All Property Types and Tenancies? The abolition of Section 21 primarily impacts assured shorthold tenancies (ASTs) in England. This includes the vast majority of private residential tenancies that were previously created. Tenancies in Wales, Scotland, and Northern Ireland operate under different legal frameworks and are not directly affected by the Renters' Rights Act 2025, which applies solely to England. Furthermore, certain specialised tenancy types, such as regulated tenancies or holiday lets, which typically do not fall under AST regulations, will also not be directly impacted by this specific change regarding Section 21. The Act introduces new mandatory grounds for possession, including a specific ground for landlords who genuinely intend to sell the property. This means that while the 'no-fault' element is removed, a landlord's legitimate intention to sell is still recognised as a valid reason to regain possession. However, it requires a court process and adherence to the specific criteria and notice periods defined within the Act. Properties rented under company lets or certain other non-AST agreements would also typically not be subject to these new rules, but landlords should always seek legal advice to confirm their specific tenancy arrangements. ## How Can I Regain Possession to Sell a Property Under the New Act? To regain possession of a property with an AST tenant because you intend to sell, you must utilise one of the new mandatory grounds for possession introduced by the Renters' Rights Act 2025. Specifically, the Act includes a ground for 'the landlord's intention to sell the property'. This is a mandatory ground, meaning that if the landlord can prove to the court they genuinely intend to sell, the court must grant possession. The process now involves serving a new type of notice to the tenant, specifying the ground for possession (in this case, the intention to sell) and adhering to the prescribed notice period. Current government guidance suggests this notice period is likely to be at least two months. Following the expiry of the notice period, if the tenant has not vacated, the landlord must apply to the courts for a possession order. The court will then assess the evidence, primarily the landlord's genuine intention to sell, before granting the order. This makes documentation, such as estate agent agreements or evidence of marketing, crucial for a successful application. ## What Evidence Do I Need to Provide for 'Intention to Sell'? To successfully use the 'intention to sell' ground for possession, a landlord will need to provide concrete evidence to the court demonstrating a genuine plan to sell the property. This is a crucial aspect of the new process, as courts will scrutinise the claim to prevent misuse. Simply stating an intention to sell will likely be insufficient; tangible proof is required. Acceptable forms of evidence commonly include a signed instruction or agreement with a legitimate estate agent for the purpose of marketing the property for sale, or a formal offer received from a buyer if the property has already been marketed. Other supporting documentation might include recent property valuations, evidence of active marketing efforts (e.g., online listings, brochures), or a solicitor's letter confirming the commencement of the conveyancing process. The court's primary objective will be to ascertain that the landlord's stated intention is not merely a pretext to evict the tenant without valid reason, but a genuine and demonstrable plan for a market sale. ## What Are the Notice Periods and Timelines for These New Possession Grounds? The Renters' Rights Act 2025 introduces new notice periods for the various possession grounds, and these are generally longer and more specific than the previous Section 21 requirements. While precise durations can vary depending on the specific ground, for the 'intention to sell' ground, the current proposals indicate a minimum notice period of two months. This period begins from the date the valid notice is served to the tenant. Following the expiry of this notice, if the tenant has not vacated, the landlord must apply to the county court for a possession order. The time taken for court proceedings can vary significantly based on court backlogs and the complexity of the case. It is not uncommon for a court hearing to take several weeks or even months to be scheduled after an application is made. If a possession order is granted and the tenant still does not leave, a further application for a warrant of possession will be required for bailiffs to enforce the eviction. Therefore, landlords should anticipate a minimum total timeline of several months from serving the initial notice to actually regaining possession, and potentially longer if the tenant contests the proceedings. ## What Happens if I Don't Sell After Evicting a Tenant on 'Intention to Sell' Grounds? The Renters' Rights Act 2025 includes provisions designed to prevent landlords from misusing the new possession grounds, including the 'intention to sell' ground. If a landlord successfully evicts a tenant using this ground but then fails to sell the property, and instead re-lets it or uses it for another purpose not consistent with the stated ground within a specified period (e.g., 12 months), they could face significant penalties. Such penalties may include financial fines, potentially equivalent to several months' rent, and being ordered to pay compensation to the unlawfully evicted tenant. This compensation aims to cover the tenant's costs and inconvenience incurred due to the misleading eviction. These measures are designed to ensure that landlords act genuinely and transparently when using the new mandatory possession grounds. Therefore, landlords must have a firm and genuine intention to sell and be prepared to follow through with the sale process once possession is regained, to avoid potential legal repercussions and financial penalties. ## What are the costs associated with using the new possession grounds? Using the new possession grounds, including the 'intention to sell' ground, involves several potential costs that landlords must factor into their financial planning. Unlike the previous Section 21 process, which was relatively inexpensive outside of legal advice, the new system almost certainly entails court fees. An application for a possession order currently costs approximately £355, and if a warrant of possession is required for bailiffs to attend, this incurs an additional fee, typically around £130. Beyond direct court fees, landlords should budget for legal advice, which can range from a few hundred to several thousand pounds, particularly if the case becomes contested. A typical contested possession claim could easily cost £2,000 to £5,000 in legal fees alone, depending on its complexity and duration. Furthermore, the extended notice periods and court timelines mean longer periods of potentially reduced or no rental income, which represents a significant holding cost. For example, if a property's rent is £1,000 per month, an extra three months waiting for court proceedings means a £3,000 loss of income, alongside ongoing mortgage payments, which at the current Bank of England base rate of 3.75% could be substantial, depending on the loan amount and interest rate. ## Key Considerations for Landlords Under the Renters' Rights Act 2025 * **Genuine Intentions:** Landlords must have a verifiable and genuine intention to sell, move in, or undertake major renovations. Evidence will be scrutinised by courts. * **Increased Timelines:** Expect longer lead times for regaining possession due to extended notice periods and court processing times. This impacts financial planning and void periods. * **Cost Implications:** Court fees, potential legal costs, and lost rental income during extended periods mean higher overall costs for regaining possession. * **Documentation is Key:** Maintain meticulous records of communication, notices, marketing efforts (for sale), and any other evidence supporting your grounds for possession. * **Compliance is Paramount:** Understand the specific requirements for each ground, including notice format and duration, to avoid invalidating your claim and incurring delays. ## Pitfalls to Avoid with New Possession Grounds * **Fabricating Grounds:** Do not attempt to use an 'intention to sell' or 'move in' ground if the plan is not genuine. The Act has severe penalties for fraudulent claims. * **Incorrect Notice Procedures:** Failing to use the correct notice form, providing insufficient notice, or improperly serving notice can invalidate your application and lead to costly delays. * **Inadequate Evidence:** Assuming a court will take your word for it without robust evidence of your intention to sell, refurbish, or move in will likely result in your claim being rejected. * **Ignoring Tenant Rights:** Disregarding a tenant's right to proper notice, or attempting to harass them into leaving, can lead to counter-claims, fines, and reputation damage. * **Underestimating Timelines & Costs:** Do not assume the process will be quick or cheap. Budget for legal fees, court costs, and several months of potential void periods. ## Investor Rule of Thumb Under the new Renters' Rights Act 2025, every decision to regain possession of a property from an AST tenant requires careful legal consideration and robust evidence, shifting from a 'no-fault' approach to a 'reason-based' court process. ## What This Means For You The abolition of Section 21 fundamentally changes the landscape for landlords needing to regain possession, particularly if you're planning to sell. It means more planning, more evidence, and a greater reliance on the court system. Most landlords don't get into trouble because they don't understand the rules, but because they fail to prepare adequately for changes like this. If you want to understand how these legislative shifts impact your specific investment strategy and how to best prepare, this is exactly the type of detailed, practical guidance we provide and analyse inside Property Legacy Education.

Steven's Take

The abolition of Section 21 is one of the most significant changes to landlord-tenant law in decades. As a property investor, you must understand that the 'no fault' eviction is disappearing. While there will be a new ground for sale, it will involve proving your genuine intent and navigating a court process. This means your timelines for selling will likely extend, and strategic planning becomes even more critical. Selling with tenants in situ will become a more common consideration, though often at a discount. My advice is to focus on maintaining excellent tenant relationships and ensuring your properties are fully compliant, as this will minimise your risk of needing to use complex possession grounds in the first place.

What You Can Do Next

  1. Review the latest government guidance on the Renters' Rights Bill: Regularly check gov.uk/guidance/guide-for-landlords-renting-out-your-property for updates on the Bill's progress and specific details on new possession grounds.
  2. Assess your current portfolio strategy: Consider how the longer possession process might impact your exit strategies, particularly if you rely on vacant possession for sales. Plan for extended holding periods.
  3. Consult with a property lawyer: Engage a specialist property lawyer (search 'property lawyer UK' on the Law Society's website) to understand the precise implications of the new grounds for possession and how to gather evidence for genuine sale intent.
  4. Prepare for selling with tenants in situ: Understand the implications of selling a tenanted property, including potential valuation impacts and suitable buyer profiles. Research property agencies specialising in tenanted sales.
  5. Prioritise property compliance and tenant relations: Ensure all maintenance, safety checks, and EPC requirements (minimum E, C by 2030) are up to date. Good tenant relationships can help prevent issues that lead to possession claims.

Get Expert Coaching

Ready to take action on tax & accounting? Join Steven Potter's Property Freedom Framework for comprehensive, hands-on property investment coaching.

Learn about the Property Freedom Framework

Related Questions

View all in Tax & Accounting