The Rental Market Crossroads: Why Landlords Need Certainty Before It’s Too Late
The private rental sector is at a critical turning point. With Section 21 evictions surging ahead of the Renters Rights Bill, the figures are alarming. While these changes aim to protect tenants, they risk doing the opposite. In this article, I react to the comments of an eviction expert and urge the Government to face the reality of their actions.
Below are comments from Paul Shamplina, eviction expert and founder of Landlord Action. He is telling the private rental sector to stand by for a probable glut of evictions. He predicts that Section 21 claims will surge to their highest ever levels in 2025 as landlords try to pre-empt the Labour government’s Renters Rights Bill before it becomes law.
His comments come following the latest Ministry of Justice figures which show that in Q4 2024, there was a sharp acceleration in possession claims, bringing the total for the year to 32,287 – the highest since 2016.
Repossessions by county court bailiffs under Section 21 also reached their highest level since 2017, with 11,373 carried out in 2024 – up 20% from 2023. Shamplina claims:
“The latest possession figures from the Ministry of Justice confirm what I’ve been warning about for years. With the Renters Rights Bill looming, many smaller landlords have panicked, knowing the Section 21 ban is coming, and have chosen to use it before they lose it. This directly correlates with the 20% increase in cases we’ve seen at Landlord Action, a consequence of landlords losing confidence in the sector and more landlords seeking possession before the system changes.
“History tells us that when major legislative changes are introduced, landlords react. We saw it with the Deregulation Act in 2015, and now, with a combination of Section 24 tax changes, rising interest rates, EPC regulations, and the uncertainty surrounding rental reforms, it’s simply too much for many smaller landlords. The knock-on effect is clear: A surge in Section 21 claims as landlords rush to secure possession before the rules change. Courts are already overwhelmed, and with no additional resources allocated, landlords are facing waits of up to 15 months for eviction dates. This is completely unacceptable.”
“Now, as we head into 2025, I predict Section 21 claims will hit their highest levels, particularly in the first six months. The fear among landlords is real. Under new possession grounds, it will be even more difficult to reclaim properties.Looking ahead, the situation will only worsen. Once the new law is in place, landlords looking to sell will need to wait a year and then serve a four-month notice under Ground 1A. This will add further strain on an already struggling court system, pushing local authorities to breaking point as more tenants are forced to stay put until eviction.”
My Opinion
The predicted surge in Section 21 claims isn’t just a reaction to incoming legislative changes, it’s a clear symptom of a broken system that fails to support those providing the nation’s rental housing.
The Ministry of Justice’s latest figures paint a concerning picture: possession claims have skyrocketed, with Section 21 repossessions reaching their highest levels in years. This is not because landlords are heartless or reckless but because they are forced into defensive action. The uncertainty surrounding the Renters Rights Bill, coupled with punitive tax changes, rising costs, and a sluggish legal process, leaves landlords with little choice but to take back control of their assets while they still can.
For too long, landlords have been portrayed as the villains of the rental market, but the reality is far more nuanced. Many are small-scale investors who have put their savings into property as a pension or a way to support their families. These landlords are not faceless corporations; they are people who have worked hard to provide homes for tenants. Yet, they are now being pushed out of the sector due to mounting pressures and legislative uncertainty.
The Consequences of Landlords Selling
If Shamplina’s predictions hold true, 2025 will see the highest number of evictions in history. This is not because landlords want to remove tenants, but because they fear they will lose control of their properties under the new system. With the proposed end of Section 21, landlords will face even longer court delays when needing to regain possession. This will likely drive more landlords to sell up entirely, further reducing rental stock at a time when demand for housing is at an all-time high.
The irony is clear: a bill designed to protect tenants may end up harming them the most. With landlords exiting the market, competition for rental properties will increase, pushing rents even higher. Those left behind will face greater insecurity, not because of landlords, but because of a government that has failed to properly balance the needs of all stakeholders in the housing market.
A Call for Real Reform
Rather than demonising landlords, the government must act now to provide real solutions. The calls for a dedicated Housing Court, which could expedite possession cases and provide a fairer system for both landlords and tenants, must be taken seriously. Without additional resources, the current court system will collapse under the weight of increased claims, leaving landlords in limbo and tenants stuck in uncertainty.
It is also crucial to reconsider policies that deter landlords from remaining in the sector. Section 24 tax changes, excessive licensing schemes, and overly restrictive possession rules create an environment where only institutional landlords can survive. If smaller landlords continue to exit, the private rental sector will become dominated by large corporate entities, offering less flexibility and fewer personal touches that many tenants value.
Working Together for a Better Future
At Cope & Co., we believe in a fair, well-regulated private rental sector where landlords and tenants can thrive together. We understand the concerns many landlords are facing and are here to provide guidance and support during this turbulent time. Rather than reacting with fear, landlords must stay informed and proactive, ensuring they make the best decisions for their properties and their tenants.
The government must listen to the voices of landlords and act before it’s too late. Without urgent intervention, the rental market will face an exodus that will leave thousands without homes and the court system unable to cope.
The message is clear: landlords need certainty, tenants need security, and the government needs to step up before it’s too late.
