Landlord and Tenant Update – First Fine Under the Renters’ Rights Act Sends a Clear Message to Landlords

Gateshead Council has issued what it says is its first completed financial penalty under the Renters’ Rights Act 2025, fining a landlord £3,600 for serving a Section 21 notice after the abolition of “no-fault” evictions came into force on 1 May 2026. The landlord ultimately paid £3,060 after receiving an early payment discount.

This case is a timely reminder that the legal landscape for residential landlords has changed fundamentally. The abolition of Section 21 means that landlords can no longer seek possession of a property simply by serving a “no-fault” notice. Instead, possession can only be sought through the statutory process and on the basis of a valid possession ground under Section 8.

Whilst many landlords have adapted well to the new regime, this enforcement action demonstrates that local authorities are prepared to take action where outdated procedures continue to be used. Ignorance of the law is unlikely to be a defence, particularly where guidance and support have been made available to landlords regarding the changes.

Landlords should also be aware that attempting to bring a tenancy to an end by informal means, pressure, or invalid notices is likely to expose them to significant legal and financial risk. The correct route to possession is now through the statutory Section 8 framework, relying upon an appropriate and provable ground for possession.

The message from this case is simple: Section 21 is gone. Residential landlords must ensure that any attempt to recover possession is based on a valid Section 8 ground and that the correct legal process is followed throughout. Failure to do so may result not only in an unsuccessful possession claim but also regulatory enforcement and financial penalties.

The case is likely to be the first of many as councils across England begin enforcing the new regime. Landlords would be well advised to review their policies and procedures now to ensure they remain compliant with the post-Section 21 landscape.

If you are a landlord and would like advice on the changes introduced by the Renters’ Rights Act 2025, or assistance with possession proceedings and tenancy management, our specialist landlord and tenant team would be happy to help.