There has been a noticeable rise in possession instructions across the rental sector as landlords move to act ahead of the upcoming Renters’ Rights Act. Activity has increased by around 60% compared with March last year, suggesting a clear shift in behaviour as key legislative changes approach.
Landlord Action has also reported a significant increase in demand for its services, with enquiries up by 75%. The firm says this reflects growing uncertainty in the market and aligns with expectations that possession activity would rise ahead of reform.
Landlords acting before new rules take effect
Industry data shows that this trend is not limited to a single month, but has been building steadily throughout the year. Possession instructions for the first quarter are up by 32% year-on-year, while enquiries have increased by 23% over the same period.
This suggests landlords have been gradually adjusting their approach in anticipation of the new rules, rather than reacting to a sudden change.
A key factor behind this shift appears to be concern over how possession will operate once reforms are introduced, particularly the removal of Section 21 “no-fault” evictions. Many landlords are reportedly choosing to act now while existing processes remain available, rather than risk being tied into more complex procedures later on.
Heavy reliance on Section 21
The figures also highlight just how dependent the sector remains on Section 21 notices as a route to regain possession. According to Landlord Action, Section 21 continues to account for the majority of its possession cases each month.
In March, Section 21 was reportedly used almost three times more frequently than Section 8, reinforcing its role as the primary mechanism for ending tenancies without fault-based grounds.
Section 21 instructions have also risen sharply, increasing by 43% year-on-year in the first quarter.
This level of reliance suggests that the removal of Section 21 will represent a major structural change for the private rented sector, shifting a large volume of cases into Section 8, which typically requires court proceedings and specific legal grounds.
Pressure expected to shift into the courts
With Section 21 set to be removed, a significant number of possession cases are expected to move into the court system. Even if only a portion of these cases are transferred into Section 8 claims, there are concerns that this could place additional pressure on courts that are already facing delays and backlogs.
Landlord Action suggests that this transition could result in more complex and time-consuming possession processes, particularly in cases that would previously have been resolved without court involvement.
Landlord uncertainty driving early decisions
Paul Shamplina, founder of Landlord Action, said the increase in possession activity is consistent with what many in the industry had expected as the reforms approached.
He explained that landlords are facing a mix of uncertainty and concern, particularly around how possession rules will work in practice once the legislation changes. Issues such as compliance requirements, court delays, rent arrears risk, and rising mortgage costs are all contributing to earlier decision-making.
According to Shamplina, some landlords are bringing forward possession actions that might otherwise have been delayed, while others are choosing to exit the sector altogether.
Wider impact on tenants and the rental market
The firm also warns that while possession activity may slow once the new rules come into force, the impact of the current surge may already be felt. Tenants are increasingly receiving notice in circumstances where landlords may not previously have taken action.
There are concerns that this could lead to disruption in the rental market, with some households being forced to move earlier than expected. At the same time, the removal of Section 21 is expected to change long-term landlord behaviour, potentially reducing flexibility within the sector.
A sector under transition
Overall, the data points to a rental market in transition, with landlords responding early to anticipated regulatory change. The increase in possession instructions suggests that many are taking a cautious approach, prioritising certainty before the new framework takes effect.
While the Renters’ Rights Act is intended to strengthen tenant protections, the period leading up to its introduction appears to be creating short-term pressure within the system. As a result, both landlords and tenants are being affected by a wave of early adjustments as the industry prepares for a major shift in how possession is handled.
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