Council fines landlord for illegal Section 21 notice under Renters Rights Act

Council fines landlord for illegal Section 21 notice under Renters Rights Act

A landlord has been fined £3,600 by Gateshead council for serving a Section 21 eviction notice after the Renters Rights Act abolished this type of notice. The fine was reduced to £3,060 after early payment.

The first enforcement action under the Renters Rights Act has been taken by a local authority against a landlord who issued a Section 21 eviction notice after the legal prohibition came into effect on 1 May 2026. The council imposed a £3,600 penalty, reduced by 15% due to payment within 28 days, resulting in a £3,060 charge.

The Renters Rights Act removed the use of Section 21 ‘no fault’ eviction notices, requiring landlords to rely on valid possession grounds to regain possession of a property. This change represents a significant shift in eviction law, aiming to provide tenants with greater security and reduce arbitrary evictions.

Details of the first fine and council enforcement approach

Gateshead council issued the fine after identifying the landlord’s breach of the new legislation. The council stated its intention to support landlords in understanding their responsibilities but confirmed it would take enforcement action when breaches occur. The landlord was given an opportunity to respond before the penalty was confirmed, and payment was received in early September.

The council also indicated that further cases are under consideration, signalling ongoing scrutiny of compliance with the Renters Rights Act. This first fine sets a precedent for local authorities’ enforcement powers and highlights the risks landlords face if they do not adapt to the new legal framework.

Landlords should note that the fine amount and enforcement process reflect the seriousness with which councils are treating illegal eviction notices under the new regime. The reduction for prompt payment incentivises landlords to address breaches quickly.

Background on the Renters Rights Act and Section 21 abolition

The Renters Rights Act, which came into force on 1 May 2026, abolished the Section 21 eviction process in England. Section 21 previously allowed landlords to regain possession of a property without providing a reason, subject to notice periods. The Act requires landlords to use one of the statutory possession grounds, such as rent arrears or breach of tenancy terms, to seek possession through the courts.

This legislative change is part of broader rental reform aimed at enhancing tenant protections and reducing insecurity in the private rented sector. The removal of Section 21 has been controversial, with concerns about impacts on landlords’ rights and the eviction process.

Practically, landlords must now ensure they have clear, documented grounds for possession and follow the correct legal procedures. The Act also introduces new penalties and enforcement mechanisms for non-compliance, as demonstrated by this first fine.

Practical implications for landlords and letting agents

Landlords with private rented properties must review their eviction procedures immediately. Serving a Section 21 notice is no longer lawful, and continuing to do so risks significant fines. Instead, landlords should familiarise themselves with the valid possession grounds under the Renters Rights Act and ensure any eviction action is supported by appropriate evidence.

Letting agents should update their tenancy management protocols and advise landlords accordingly. Documentation must be thorough, including records of rent payments, tenant breaches, and communications. Early legal advice may be necessary to navigate possession claims under the new rules.

Failure to comply with the new possession requirements could lead to enforcement action by local authorities, financial penalties, and delays in regaining possession. This first fine illustrates that councils are actively monitoring compliance and willing to impose sanctions.

Ongoing uncertainties and areas to monitor

While the Renters Rights Act provides a clear legal framework, some practical uncertainties remain. For example, the interpretation of possession grounds by courts may evolve, affecting eviction outcomes. Landlords and agents should watch for updated official guidance and case law developments.

The scale and frequency of local authority enforcement actions are also uncertain. This initial fine may be followed by more penalties, but the extent of enforcement resources and priorities could vary by council.

Landlords should be alert to potential changes in related regulations, such as deposit protection, licensing, and safety standards, which continue to affect tenancy management. Staying informed will be essential to maintain compliance and avoid penalties.

What landlords should do now to avoid fines

• Immediately cease using Section 21 notices for possession claims.
• Review all tenancy agreements and eviction procedures to ensure they comply with the Renters Rights Act.
• Document and retain evidence supporting any possession ground relied upon for eviction.
• Seek legal advice or professional guidance on valid possession grounds and court procedures under the new law.
• Monitor communications from local authorities and keep abreast of enforcement trends.
• Ensure all tenancy management records are accurate and up to date to support compliance.

Landlords should also consider training or resources to understand the new legal environment and reduce risks of inadvertent breaches. Letting agents have a role in advising landlords and updating their own compliance practices accordingly.

Supporting landlords through compliance with the Renters Rights Act

The Landlord Association (TLA) offers membership that includes access to detailed compliance resources and practical information tailored to the evolving rental regulatory framework. Members can benefit from guidance on possession grounds, tenancy management, and enforcement risks under the Renters Rights Act.

TLA is developing ORBIT, a new property management and compliance platform currently available in BETA testing. ORBIT aims to help landlords and letting agents organise property records, manage rental documents, and keep evidence of compliance activity together. This includes features to record communications, track possession procedures, and access up-to-date regulatory information.

Exploring TLA membership and ORBIT BETA access can support landlords in adapting to the new legal requirements, reducing the risk of fines, and managing their portfolios more effectively in a changing regulatory environment.

Looking ahead, landlords must remain vigilant as enforcement activity increases and the courts interpret new possession grounds. Proactive compliance and thorough documentation will be crucial to avoid penalties and ensure lawful possession processes.

Sources: Landlord Today