THE PROPERTY FILTER TAKE
Law firms are being swamped with last-minute Section 21 notices and rental sell-off instructions as landlords race to exit before the Renters' Rights Act removes their no-fault eviction rights
For investors still holding rental property, the window to serve a valid S21 (Section 21 - a no-fault eviction notice under the Housing Act 1988) notice is narrowing fast, with the Act expected to take effect in England in 2026
You may wish to speak to a specialist housing solicitor now if you are considering a sale or need to recover possession, as legal capacity at many firms is reportedly stretched thin
Law firms specialising in landlord and tenant law are being overwhelmed by a last-minute wave of Section 21 notices and rental property sell-off instructions, according to reporting by Letting Agent Today (1 May 2026). Many landlords cite the Renters' Rights Act as the final straw pushing them to exit the private rented sector before the legislation takes effect in England.
Full source article unavailable at time of writing. This article is written from the published summary and publicly available regulatory information.
What is driving the rush to serve S21 notices?
Section 21 of the Housing Act 1988 is the "no-fault eviction" route. It allows a landlord in England to recover possession of a property without proving fault on the tenant's part. Once the Renters' Rights Act comes into force - the deadline is TBC but is widely expected during 2026 - Section 21 will be abolished for all tenancies in England.
That creates a hard compliance cliff. Any landlord who wants to use the Section 21 route must serve a valid notice before the abolition date. The penalty for non-compliance with the new regime is that landlords will be locked into the Section 8 (fault-based eviction) process only, which typically takes longer and requires one of the specified grounds under Schedule 2 of the Housing Act 1988.
The result is a surge in instructions to housing solicitors. Law firms are reportedly struggling to process the volume. If you are planning to serve a notice, you must allow for the standard two-month minimum notice period under Section 21 on top of any solicitor lead time.
Who exactly must comply - and when?
The Renters' Rights Act applies in England. Scotland, Wales, and Northern Ireland operate separate regimes and Section 21 has already been abolished in Scotland (under the Private Housing (Tenancies) (Scotland) Act 2016). Welsh landlords operate under the Renting Homes (Wales) Act 2016, which uses a different notice structure.
In England, you must comply from the date the Renters' Rights Act takes effect. The Act has completed its parliamentary passage. The Government has not yet confirmed the exact commencement date. Until it does, the deadline is TBC - but the direction of travel is clear. In practice this means the window is already short. A two-month Section 21 notice served today needs the relevant paperwork (Energy Performance Certificate, Gas Safety Certificate, How to Rent guide) to have been correctly served at the start of the tenancy. If any of those documents are missing, the notice is invalid. There is no fix available after the fact.
For landlords choosing to sell rather than serve a notice, the property investment strategy question becomes: sell with a sitting tenant or recover possession first? Each route has different pricing and timescale implications.
What does a sell-off wave mean for the market?
A surge of rental properties onto the sales market creates supply pressure in certain price bands - particularly the two-bedroom flat and terrace house stock that makes up the bulk of the private rented sector. For investors looking to buy, that can create opportunities if vendors are motivated. For those selling, competition from other landlord disposals may compress prices.
Landlords should also consider the tax position before committing. Capital Gains Tax (CGT - the tax on profit from selling an asset) on residential property is charged at 18% (basic rate) or 24% (higher rate) in England and Wales for the 2025/26 tax year, following changes announced in the Autumn 2024 Budget. You can review your numbers using the stress test calculator to model the net position after tax and mortgage redemption.
For landlords who rely on Local Housing Allowance (LHA - the benefit that covers rent for eligible tenants in the private rented sector), the LHA rates map shows current allowance levels by area. If you are considering retaining a property and switching to an LHA tenant base, knowing the local allowance rate is the starting point.
The free resources hub has further guidance on landlord compliance obligations as the Act progresses.
Key takeaways
S21 notices must be served before the Renters' Rights Act takes effect in England - the precise commencement date is TBC as of June 2026
A minimum 2-month notice period applies under Section 21, on top of any solicitor processing time
Section 21 has already been abolished in Scotland under the Private Housing (Tenancies) (Scotland) Act 2016 - different rules apply there
CGT on residential property sales stands at 18% (basic rate) or 24% (higher rate) for the 2025/26 tax year in England and Wales
Law firm capacity is reportedly stretched - act early if you need a solicitor for possession or a sale
Frequently asked questions
Can I still serve a Section 21 notice today (June 2026)?
Yes, Section 21 remains valid in England until the commencement date of the Renters' Rights Act is formally confirmed. You must ensure all prescribed documents (Energy Performance Certificate, Gas Safety Certificate, How to Rent guide) were correctly served at the start of the tenancy, otherwise the notice is invalid regardless of timing.
What replaces Section 21 once the Renters' Rights Act takes effect?
Landlords in England will need to rely on Section 8 of the Housing Act 1988, which requires one of the prescribed grounds for possession to be satisfied - for example, rent arrears, anti-social behaviour, or the landlord wishing to sell or move in.
Does the Renters' Rights Act apply in Scotland and Wales?
No. Scotland abolished no-fault eviction under the Private Housing (Tenancies) (Scotland) Act 2016. Wales operates under the Renting Homes (Wales) Act 2016, with its own notice structure. The Renters' Rights Act is England-only legislation.
What should I do if I want to sell my rental property before the Act takes effect?
Speak to a housing solicitor early given reported capacity pressures at law firms. You will need to decide whether to sell with a sitting tenant or recover possession first - both have different timescale and pricing implications. Review your tax exposure using the stress test calculator before committing.
Law firms specialising in landlord and tenant law are being overwhelmed by a last-minute wave of Section 21 notices and rental property sell-off instructions, according to reporting by Letting Agent Today (1 May 2026). Many landlords cite the Renters' Rights Act as the final straw pushing them to exit the private rented sector before the legislation takes effect in England.
Full source article unavailable at time of writing. This article is written from the published summary and publicly available regulatory information.
What is driving the rush to serve S21 notices?
Section 21 of the Housing Act 1988 is the "no-fault eviction" route. It allows a landlord in England to recover possession of a property without proving fault on the tenant's part. Once the Renters' Rights Act comes into force - the deadline is TBC but is widely expected during 2026 - Section 21 will be abolished for all tenancies in England.
That creates a hard compliance cliff. Any landlord who wants to use the Section 21 route must serve a valid notice before the abolition date. The penalty for non-compliance with the new regime is that landlords will be locked into the Section 8 (fault-based eviction) process only, which typically takes longer and requires one of the specified grounds under Schedule 2 of the Housing Act 1988.
The result is a surge in instructions to housing solicitors. Law firms are reportedly struggling to process the volume. If you are planning to serve a notice, you must allow for the standard two-month minimum notice period under Section 21 on top of any solicitor lead time.
Who exactly must comply - and when?
The Renters' Rights Act applies in England. Scotland, Wales, and Northern Ireland operate separate regimes and Section 21 has already been abolished in Scotland (under the Private Housing (Tenancies) (Scotland) Act 2016). Welsh landlords operate under the Renting Homes (Wales) Act 2016, which uses a different notice structure.
In England, you must comply from the date the Renters' Rights Act takes effect. The Act has completed its parliamentary passage. The Government has not yet confirmed the exact commencement date. Until it does, the deadline is TBC - but the direction of travel is clear. In practice this means the window is already short. A two-month Section 21 notice served today needs the relevant paperwork (Energy Performance Certificate, Gas Safety Certificate, How to Rent guide) to have been correctly served at the start of the tenancy. If any of those documents are missing, the notice is invalid. There is no fix available after the fact.
For landlords choosing to sell rather than serve a notice, the property investment strategy question becomes: sell with a sitting tenant or recover possession first? Each route has different pricing and timescale implications.
What does a sell-off wave mean for the market?
A surge of rental properties onto the sales market creates supply pressure in certain price bands - particularly the two-bedroom flat and terrace house stock that makes up the bulk of the private rented sector. For investors looking to buy, that can create opportunities if vendors are motivated. For those selling, competition from other landlord disposals may compress prices.
Landlords should also consider the tax position before committing. Capital Gains Tax (CGT - the tax on profit from selling an asset) on residential property is charged at 18% (basic rate) or 24% (higher rate) in England and Wales for the 2025/26 tax year, following changes announced in the Autumn 2024 Budget. You can review your numbers using the stress test calculator to model the net position after tax and mortgage redemption.
For landlords who rely on Local Housing Allowance (LHA - the benefit that covers rent for eligible tenants in the private rented sector), the LHA rates map shows current allowance levels by area. If you are considering retaining a property and switching to an LHA tenant base, knowing the local allowance rate is the starting point.
The free resources hub has further guidance on landlord compliance obligations as the Act progresses.
Key takeaways
S21 notices must be served before the Renters' Rights Act takes effect in England - the precise commencement date is TBC as of June 2026
A minimum 2-month notice period applies under Section 21, on top of any solicitor processing time
Section 21 has already been abolished in Scotland under the Private Housing (Tenancies) (Scotland) Act 2016 - different rules apply there
CGT on residential property sales stands at 18% (basic rate) or 24% (higher rate) for the 2025/26 tax year in England and Wales
Law firm capacity is reportedly stretched - act early if you need a solicitor for possession or a sale
Frequently asked questions
Can I still serve a Section 21 notice today (June 2026)?
Yes, Section 21 remains valid in England until the commencement date of the Renters' Rights Act is formally confirmed. You must ensure all prescribed documents (Energy Performance Certificate, Gas Safety Certificate, How to Rent guide) were correctly served at the start of the tenancy, otherwise the notice is invalid regardless of timing.
What replaces Section 21 once the Renters' Rights Act takes effect?
Landlords in England will need to rely on Section 8 of the Housing Act 1988, which requires one of the prescribed grounds for possession to be satisfied - for example, rent arrears, anti-social behaviour, or the landlord wishing to sell or move in.
Does the Renters' Rights Act apply in Scotland and Wales?
No. Scotland abolished no-fault eviction under the Private Housing (Tenancies) (Scotland) Act 2016. Wales operates under the Renting Homes (Wales) Act 2016, with its own notice structure. The Renters' Rights Act is England-only legislation.
What should I do if I want to sell my rental property before the Act takes effect?
Speak to a housing solicitor early given reported capacity pressures at law firms. You will need to decide whether to sell with a sitting tenant or recover possession first - both have different timescale and pricing implications. Review your tax exposure using the stress test calculator before committing.
