Section 21 evictions scrapped: What landlords need to know
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The abolition of Section 21 is one of several major rental reforms that could affect how landlords manage tenancies, regain properties and arrange suitable insurance cover.
Landlords are being urged to review their paperwork and insurance after the government introduced sweeping changes to rental laws – including the scrapping of Section 21 'no-fault' evictions.
Section 21 'no-fault' evictions have been abolished in England, prompting landlords to review their tenancy agreements, records and insurance policies.
The changes, introduced under the Renters’ Rights Act, ended the use of Section 21, a key legal mechanism that allowed landlords to reclaim their properties without specifying a reason.
The revised law now requires landlords to give one of several recognised grounds for regaining possession, such as intending to sell the property, move in themselves, redevelop, or in response to significant breaches of tenancy such as rent arrears. Importantly, any possession claim must be supported by appropriate evidence.
The government’s new rules also overhaul how tenancies and rent increases are managed. Fixed-term assured shorthold tenancies have been replaced by periodic tenancies, providing tenants with more flexibility.
Rent can now only be increased once per year, and tenants gain new rights to challenge rent hikes they believe are unreasonable. Additionally, so-called 'rental bidding wars', where tenants compete to outbid each other, have been outlawed.
Pet ownership is another area of reform. Landlords can no longer impose blanket bans on pets. Instead, tenants have the right to request permission for a pet, and any refusal must be based on reasonable grounds. However, insurers such as AXA have warned that most standard landlord policies do not cover damage caused by pets, including scratching, chewing or fouling. The company is advising landlords to review their insurance arrangements to ensure their cover remains suitable.
The importance of accurate paperwork is also increasing. AXA stresses that insurance details need to reflect the current situation of the property and the type of tenant, and that records must be kept fully up to date. Failure to do so could jeopardise insurance cover in the event of a claim. With the possession process now more evidence-based, some insurance policies may call for enhanced checks on tenants, such as credit references and proof of identity.
AXA has warned that the more formal and potentially lengthy possession process could lead to additional legal proceedings and higher costs for landlords, possibly pushing up insurance premiums across the board.
The new rules apply to all landlords, whether they own a single rental property or manage a larger portfolio. Some provisions, such as increased protection against discrimination for tenants who receive benefits or have children, also apply in Scotland and Wales.
For further support, landlords are being encouraged to review their agreements and make use of resources such as AXA’s landlord advice hub as the changes take effect. To find out more click here.
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