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Landlords Face New Eviction Rules Ahead of 2027 Sale

Financial Times Companies •
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A landlord in London eyes a 2027 sale to fund home upgrades but faces the Renters’ Rights Act, due May 1 2026. The new law will eliminate Section 21, the “no‑fault” eviction route. If a landlord acts before the cutoff, the notice must be served by April 30, with possession proceedings filed within six months or by July 31.

Serving a Section 21 notice now offers certainty, yet landlords must satisfy preconditions: deposit protection, gas safety certificates, and prescribed information. Once the Act takes effect, landlords shift to Section 8, which demands a specific legal ground and may trigger court delays. Attorneys warn that the court system could become congested, pushing some tenants over a year before vacant possession for sale.

If a landlord intends extensive redevelopment to clear a property for sale, Ground 6 under Section 8 may apply. This ground permits possession when works are too disruptive for a tenant, provided the landlord proves genuine intent, acts promptly after a possession order, and covers reasonable removal costs. However, possession cannot take effect during a fixed‑term tenancy to secure the sale by.

Landlords weighing a 2027 sale must decide between the certainty of a Section 21 notice and the uncertainty of a Section 8 claim, knowing that court backlogs could delay possession. The shift signals a higher cost and longer timeline for regaining property, affecting investors’ liquidity decisions and the broader buy‑to‑let market in.