Section 21 Changes 2026: What the Abolition Means for Landlords

By Mirko Zara | Published | Updated

Section 21 Changes 2026: What the Abolition Means for Landlords

What Changed With Section 21 in May 2026?

  • Please note Section 21 applies to private rented properties in England. Different tenancy and possession rules apply in Scotland, Wales and Northern Ireland.

The Renters’ Rights Bill passed into law as the Renters’ Rights Act 2025 on October 27, 2025, causing a massive stir in the industry and prompting thousands of landlords to panic and adapt how they manage their properties.

The changes, which came into effect on May 1, 2026, have reshaped the private rental sector in England, bringing the biggest set of changes in decades and prompting landlords across the country to adapt to the new regulations, sell their properties, or switch to a short-let model.

UK landlords reviewing changes to Section 21 and rental regulations

The biggest changes

  • The abolition of Section 21 “no-fault” evictions, which gives tenants greater security.
  • Landlords can only ask tenants to leave if they have a specific, legally defined ground under a Section 8 notice.
  • Fixed-term tenancies have now shifted to monthly periodic agreements.
  • The reforms limit rent increases to once a year (the increase cannot exceed open-market value) and ban bidding.

For some landlords, the new reforms just mean adapting to the changes and taking bigger risks.

For others, it prompted a complete rethink of the buy-to-let investment market, leading owners and landlords to explore short-term letting through platforms like Airbnb to regain flexibility and income potential and maintain greater control over their properties.

Landlords considering alternatives to traditional buy-to-let property

What Section 21 really means for landlords

Previously, Section 21 allowed landlords in England to regain possession of their property at the end of an assured shorthold tenancy without proving the tenant has breached their tenancy agreement.

Now that Section 21 has been abolished, landlords need to rely on revised grounds for possession, such as selling the property, moving into it themselves, or dealing with serious tenant breaches.

The blow of Section 21 is not the only reason landlords are reconsidering buy-to-let.

Many in the industry are currently experiencing:

  • Higher mortgage interest rates
  • Increasing compliance costs
  • Additional licensing schemes
  • EPC uncertainty
  • Reduced tax relief
  • Longer possession processes
  • Rising maintenance costs

Unfortunately, traditional buy-to-let no longer delivers the flexibility, trust or income it once did.

London rental property advertised to let

Why thousands have already switched to Airbnb

Unlike long-term tenancies, short-term lets still let owners retain much greater control over how and when their properties are used, and even though guest turnover is higher, the potential benefits outweigh the negatives.

For example:

Alongside significantly more flexibility, most landlords switch purely for the incredible income-generation potential.

In many cities and tourist destinations, professionally managed Airbnb properties can earn substantially more annual revenue than traditional buy-to-lets.

For example, in London, some properties can generate £95,000+ per year, compared to £30,000 for a standard residential long-let.

But not every Airbnb performs equally. It depends on your property, location and management.

Before considering switching, estimate how much you could earn with Ovitzia.

No matter where you are in the UK, we can provide a revenue forecast in minutes based on your property’s location, size, and local demand.

Fully managed Airbnb service for landlords and property owners

Making the switch easy with Ovitzia

At Ovitzia, we help landlords:

Ready to explore a higher-yield opportunity, or just reviewing your options following the Section 21 reforms? Speak to a member of our team today.

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