Renters Rights Act 2025: What the Abolition of Section 21 Really Means for Landlords

What Does the Abolition of Section 21 Mean in Practice?

The Renters Rights Act 2025 has created significant uncertainty in the private rental sector. Headlines about the abolition of Section 21 “no fault” evictions and strengthened tenant rights have led some landlords to question whether now is the right time to stay in the market.

But from a practical lettings perspective, the picture is more balanced than it first appears.

Yes, the system is changing. No, landlords are not losing control.

What Is Changing Under the Renters Rights Act 2025?

The most significant change is the abolition of Section 21. Landlords will no longer be able to regain possession of a property without providing a reason.

However, the Renters Rights Act does not remove a landlord’s ability to evict where there is legitimate cause.

Under the strengthened Section 8 process, landlords will still be able to seek possession if:

• A tenant falls into serious rent arrears

• There is proven anti-social behaviour

• The landlord intends to sell the property

• The landlord or a close family member intends to move in

  
  

The difference is that the process will require clearer evidence and will move fully through the courts.

For landlords who already reference thoroughly, document correctly and manage their properties professionally, this represents structural reform not loss of rights.

Section 21 Abolition: Should Landlords Be Worried?

The abolition of Section 21 is often framed as a major threat to landlords. In reality, it shifts the emphasis toward documentation and due process.

Good landlords who:

• Carry out robust referencing

• Maintain clear tenancy agreements

• Keep detailed rent records

• Manage issues promptly

Landlords are unlikely to find themselves disadvantaged.

The new system simply formalises what good practice already looks like.

What Happened in Scotland After Similar Reform?

Scotland removed “no-fault” evictions in 2017, introducing open ended tenancies under the Private Residential Tenancy system.

There was an initial adjustment period. Some smaller or accidental landlords chose to exit the market. However, the rental sector did not collapse.

Instead, the market stabilised and became more professionalised. Demand for rental property remained strong, and experienced landlords continued operating successfully.

England is not entering unknown territory, it is following a model that has already been tested.

Rental Demand Remains High

Despite reform, rental demand across much of England remains exceptionally strong. In many regions, well-presented properties continue to attract multiple applicants. Rental growth in recent years has helped offset some of the impact of rising mortgage costs.

Supply remains constrained. Demand remains high.

The fundamentals of the market have not disappeared.

The Bigger Risk: Emotional Decision Making

The greatest risk for landlords right now is not regulatory reform, it is making long term decisions based on short term anxiety.

Periods of legislative change often reshape markets. They tend to favour landlords who treat property as a structured business rather than a passive investment.

Clearer frameworks can support:

• Better tenant accountability

• Longer tenancies

• More predictable income

• Improved standards across the sector

  
  

Reform raises expectations but it does not remove opportunity.

Why I Launched Lilley & Co Now

I chose to launch Lilley & Co at this moment deliberately.

After nearly a decade working for national agencies including Connells and Chestertons, I’ve seen multiple market shifts. Each time, the landlords who adapted thoughtfully, rather than reacted quickly, were the ones who benefited.

Landlords don’t need alarmist commentary. They need clear, informed guidance based on real world experience.

Reform does not mean retreat. It means preparation.

For landlords willing to understand the detail of the Renters Rights Act 2025 and the abolition of Section 21, this could be a period of adjustment, not disadvantage

Unsure how these changes affect you?

Every landlord’s situation is different. If you’d like clarity on how the Renters Rights Act 2025 and the abolition of Section 21 could impact your property, get in touch for a confidential discussion.

About the Author

Megan Lilley is the founder of Lilley & Co, an independent lettings and property management agency. With nearly a decade of experience at national firms including Connells and Chestertons, Megan specialises in advising landlords on regulatory change and strategic portfolio management.

Frequently Asked Questions About the Renters Rights Act

Can landlords still evict tenants after Section 21 is abolished? Yes. Landlords will still be able to regain possession through strengthened Section 8 grounds where there is legitimate cause.

Will rents increase after the Renters Rights Act? Reduced supply may place upward pressure on rents in some areas, although this will vary by location.

Is it worth being a landlord in 2025? For professional landlords operating strategically, the fundamentals of supply and demand remain strong.