Is It Time For Landlords To Serve Section 21 Notices To Their Current Tenants Now? Preparing for the Renters’ Rights Bill

Status date: 30 July 2025. Legislation is still before Parliament and subject to change. Always obtain tailored advice before taking action.

Section 21 is still available today (subject to all validity requirements) but is set to be abolished when the Renters’ Rights Bill becomes law. This is expected to happen in third quarter of 2025 or first quarter of 2026 with the transitional provisions yet to be confirmed. The Bill replaces Assured Shorthold Tenancies and fixed terms with a single periodic assured tenancy model; landlords will need a statutory ground (largely via re‑tooled Section 8) to recover possession.

New Ground 1A (sale) and Ground 1B (landlord move‑in) will carry longer notice (currently 4 months in the Bill drafts) and an initial 12‑month protected period when notice cannot be served; proposals also restrict how soon a property can be re‑let after using the sale ground (12 months in the Bill as introduced; under debate to be reduced to 6 months).

More contested, evidence‑based possession work and pressure on already stretched courts is expected once no‑fault evictions go. We as professionals already see a pre‑ban spike in Section 21 claims. Do you also ask yourself if it is now the time to serve your tenant with Section 21 Notice?

If you plan to sell with vacant possession (especially to an owner‑occupier) or to restructure an unviable letting, you should review whether to start the Section 21 process before abolition — but only after a compliance audit because invalid notices waste time and money.

Why Timing Matters: Strategic Considerations Around Serving Section 21 Now

With abolition approaching, landlords weighing a disposal or restructuring decision face a tactical question: serve a Section 21 notice now under current rules, or wait for the new regime? Factors below should inform that decision.

1. Certainty of Route vs Future Evidential Burden

Today’s valid Section 21 provides a relatively predictable path (accelerated route available where no defence and paperwork in order). Post‑Bill, every claim will be grounded and often contested, adding cost, evidence gathering and potential hearing delays.

2. Court Capacity & Delay Risk

Removal of the accelerated possession procedure is expected to push more cases into full hearings. Practitioners and commentators warn that the civil courts are already under strain; backlog growth could slow recoveries and deter re‑letting.

3. If You Plan to Sell – Vacant Possession Premium

Owner‑occupier buyers almost always require vacant possession; even many investor buyers will discount for an unknown tenancy, rent level mis‑match, or nearing protected period under new law. Serving notice in time to complete a sale before the new 4‑month notice / protected period / re‑let restriction rules bite may preserve sale agility.

4. Protected Period Trap

Under the Bill, you cannot use the sale or move‑in grounds in the first 12 months. Landlords taking on new tenants now could unintentionally lock themselves out of flexibility next year unless they price that risk.

5. Longer Notice & Re‑Letting Moratorium

Moving from 2‑month to 4‑month landlord notice (plus prohibition on early service) lengthens hold times and may collide with mortgage deadlines or sale chains; additionally, the draft 12‑month (amended to 6‑month) re‑let restriction after using Ground 1A could create costly voids if a sale falls through.

6 Portfolio Risk / Cashflow Stress

NRLA flags increased financial risk: longer void exposure, delayed rent increases (annual cap), higher compliance costs and penalties. Some landlords may decide leasing is no longer viable and opt to exit ahead of the new regime

When Serving Section 21 May Be Sensible

Consider acting now if:

1. You intend to sell to an owner‑occupier within the next 6‑12 months and need contractual certainty over vacant possession. Vacant possession typically attracts the broadest buyer pool (owner‑occupiers) and can achieve a cleaner conveyancing path; however, it produces rent voids and may trigger tax timing issues.
2. The rental model is no longer financially viable (e.g., mortgage refix, compliance capex looming, rent review constraints) and you are likely to exit anyway.
3. You have a tenancy you would not choose to renew but where provable Section 8 breach is weak or contested; Section 21 offers a cleaner path while still lawful.
4. You need to de‑risk ahead of court congestion expected once all cases require grounds.

When Waiting (or Negotiating) Might Be Better

You might not rush to serve if:

1. You have a high‑performing, compliant tenant paying market rent; turnover creates cost and void risk.
2. The property is likely to be sold to another landlord happy to retain the tenancy, avoiding eviction costs and voids.
3. You are mid‑tenancy within four months of grant, where any Section 21 would be invalid (current law) and might strain relations; exploring a consensual surrender could be preferable.

What To Do Now

1. Portfolio Review: Identify which lets you would happily carry into the new periodic regime and which you may wish to end.
2. Compliance Health‑Check: Ensure deposit protection, licensing, safety certs, and documents are all in order so you retain the option to serve a valid Section 21 while it is still available.
3. Decide on Exit vs Hold: For marginal or loss‑making properties, model cashflow under annual rent review limits and higher compliance costs before committing to renewals.
4. Map Critical Dates: Work backwards from any intended sale completion or refinancing date to build in notice, court lead times, and conveyancing. Account for uncooperative tenants and court delays.
5. Take Early Legal Advice: The window to use Section 21 may close quickly once Commencement Regulations are laid; early instruction allows for defect cure.

Speak To Us

If you are considering serving notice, negotiating a surrender, or selling (with or without vacant possession), our specialist landlord & tenant and conveyancing teams can help you chart the right course through a fast‑moving legal landscape. Call us now for a fixed‑fee initial review on tel. 02033759040 or send us an email enquiry at tsvetlova@svetlovallp.com or yelda@svetlovallp.com .