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 in legislation, 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.
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.
- Shifting fixed-term tenancies have now rolled onto monthly periodic agreements.
- Limiting rent increases to once a year (the increase cannot exceed open-market value) and bidding is banned.
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.
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.
Why thousands have already switched to Airbnb
Unlike long-term tenancies, short-term lets still allow owners to retain much greater control over how and when their properties are used, and even though there is a higher turnover of guest traffic, the potential benefits outweigh the negatives.
For example:
- Higher earning potential in the right locations
- Low monthly management fees (we only earn when you do)
- Flexible owner access (use your property whenever you like)
- Dynamic pricing based on demand (capitalise on event pricing)
- No long-term tenancy agreements
- Easier scheduling for maintenance and upgrades
- Greater control over guest bookings
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 based on your property’s location, size, and local demand in minutes.
Making the switch easy with Ovitzia
At Ovitzia, we help landlords:
- Assess earning potential
- Optimise pricing
- Prepare properties for guests
- Manage listings across multiple platforms
- Handle guest communication
- Coordinate cleaning and maintenance
- Maximise occupancy throughout the year
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.