The only way is up… Section 21 and Section 8 claims surge

The latest possession figures from the Ministry of Justice (MoJ) were released in February, demonstrating a very telling upward shift in possession claims. Simply put, landlords are racing to secure possession of their properties before the abolition of Section 21. The data confirms a dramatic rise in court claims, with 32,287 Section 21 notices filed in 2024, the highest number in eight years. 

With that said, I do not believe this increase is just a reaction to the Renters’ Rights Bill, but part of a broader trend of landlords losing faith in the system. A combination of tax changes, higher interest rates, and costly regulation has already pushed many landlords to the brink. The uncertainty surrounding the abolition of Section 21, which has loomed over the market for years, has only accelerated their departure. 

One of the other significant trends evident from the 2024 MoJ figures is the record-breaking 29,303 Section 8 possession claims, which arguably marks a shift in landlord strategy. Historically, many landlords preferred to issue a no-fault Section 21 notice to remove problem tenants, often choosing to absorb unpaid rent as a loss to avoid the costly and lengthy court process. In fact, at Landlord Action, we sometimes advised landlords in urgent need of regaining possession that writing off arrears could be a more cost-effective option than pursuing a court claim. However, landlords are now increasingly turning to Section 8 to recover rent arrears, perhaps due to a tougher financial climate and the reality that Section 21 evictions in many cases at present take just as long. Faced with these delays, landlords feel they may as well attempt to reclaim unpaid rent while seeking possession.  

What is interesting, and often overlooked, is that this will become the reality for more tenants in the future. Previously, tenants who fell into arrears may have had landlords willing to write off the debt and move on. However, without the option of a no-fault eviction, landlords are more likely to pursue legal action to recover unpaid rent when issuing a Section 8. More tenants are going to find themselves subject to formal legal proceedings than ever before, increasing stress and financial hardship for both renters and landlords. At the same time, this surge in possession claims will add further strain to an already overstretched court system, which is struggling to cope with existing demand. 

The court delays landlords face today are already unacceptable, with some waiting up to 15 months for a possession order. The Government has insisted that it is working with the courts to improve efficiency, but without substantial investment, the system will be overwhelmed by the sheer volume of new cases. The removal of Section 21 will not only force all possession claims through this strained system but will also create a greater workload for local authorities, who will have to step in when tenants are unable to secure alternative housing. 

The new framework for repossession will introduce further delays. Landlords looking to sell will have to wait a full year from the start of the tenancy before they can require possession under the new Ground 1A.  

Landlord participation in the rental market is declining, with many opting to sell due to mounting pressures and this trend is set to continue. With higher costs, stricter regulations, and the looming removal of Section 21, many smaller landlords are deciding that the risks of renting no longer outweigh the rewards. The knock-on effect of this is a worsening supply crisis in the rental market. Fewer rental properties mean increased competition among tenants, driving rents even higher and making it even harder for people to secure housing. 

This situation is not sustainable. While tenant groups have long called for stronger protections, removing Section 21 without addressing the real issues (court inefficiencies, lack of housing supply, and a fairer balance of rights) will only create a more challenging environment for both landlords and renters. 

Based on what we are seeing at Landlord Action, by the end of this year we will have seen another record number of possession claims. The Government must act now to address the mounting pressure on the courts before the system collapses under the weight of demand.  

Proper investment in court resources and a streamlined possession process for landlords facing genuine issues must be implemented. 

Ultimately, landlords need confidence in a system that protects their rights, and tenants need security in their housing. If the Government fails to get this balance right, thousands of tenants and landlords will be stuck in a broken system that serves no one effectively.