The Property Intel — Issue #8 · DRAFT

The RRA Issue — Section 21 Is Gone. Now What?

The Renters’ Rights Act is enforceable. Periodic tenancies, Section 8 grounds, and the work that needs doing this month.

May 202684 deals analysed to date

Thirty-one days ago we said it was coming. As of 1st May, it’s here. Section 21 is abolished. Every assured shorthold tenancy in England is now periodic. Every “no-fault” possession route a landlord used yesterday is closed today.

I’ve spent the last four weeks fielding panicked phone calls. Most of them shouldn’t have been panicked. The landlords who genuinely should worry are the ones who never updated their tenancy agreements, never registered deposits properly, and never bothered to learn the new Section 8 grounds. If that’s you, you’ve got real work to do this month. If it isn’t, you’ve probably got less to fix than the headlines suggest.

This issue is structured around three things. First: what actually changed legally, in plain English, with the new Section 8 grounds laid out. Second: a real BTL deal that still works under the new rules — because they all do, if the property cash flows and the tenant pays. Third: the reader question I’ve been asked most often this month — what do I do with a tenant who’s stopped paying.

The world didn’t end on the 1st. Your properties still rent. Your tenants still pay. The route to possession when you need it is longer and slower, but it exists. Update your paperwork, learn the new grounds, get on with it.

NE
Nick Ellsmore
25 years · 300+ properties
Property photo
2-bed Flat, Hillsborough, Sheffield, S6
Asking: £112,000Source: Rightmove — Saxton Mee
Cash flows under the new rules
Monthly rent
£750
Gross yield
8.0%
Net yield
4.3%
Mortgage (75% LTV)
£383/month
Monthly cash flow
£164
Cash required
£34,800

An RRA-tested deal. Same property, same tenant, same rent — but a different tenancy agreement. The new periodic-only structure means no fixed renewal cycle, no renewal fees from the agent, no automatic Section 21 path at month six. What you lose in flexibility you gain in lower management cost: most letting agents are dropping renewal fees because there’s nothing to renew.

The cash flow math: £750 rent minus £383 mortgage (5.4%, 75% LTV, 25-year term, current commercial rate) minus £75 management (10%) minus £60 maintenance allowance (8%) minus £38 void allowance (5%) minus £15 insurance, plus £15 saved on RRA-removed renewal admin = £164. Real money, every month.

Hillsborough is a steady BTL postcode with consistent tenant demand from Sheffield Hallam University staff and young professionals. Days on market: 18. Capital growth last 12 months: 3.4%.

Cash flow positive after all costs at current 5.4% commercial rate
Periodic tenancy agreement template available — ready to use day one
&x26A0; EPC rating D — budget £3,500 for upgrade to C before 2030
&x26A0; Section 8 possession now 4–6 months if needed — plan working capital accordingly
2-bed flat, Leeds, LS2
£118,000 · BTL 7.6% · 6 May
GREEN
3-bed semi, Salford, M6
£148,000 · BTL 6.8% · 8 May
GREEN
2-bed terrace, Stoke, ST3
£58,000 · BTL 9.7% · 11 May
GREEN
3-bed terrace, Newport, NP19
£108,000 · BTL 7.1% · 13 May
GREEN
1-bed flat, Birmingham, B16
£92,000 · BTL 7.3% · 15 May
GREEN
2-bed flat, Manchester, M40
£135,000 · BTL 6.4% · 18 May
AMBER
3-bed semi, Doncaster, DN4
£128,000 · BTL 6.5% · 20 May
GREEN
2-bed terrace, Burnley, BB10
£52,000 · BTL 11.2% · 22 May
AMBER
3-bed semi, Coventry, CV2
£165,000 · BTL 5.9% · 25 May
AMBER
2-bed flat, Liverpool, L8
£75,000 · BTL 8.9% · 27 May
GREEN
3-bed terrace, Hull, HU5
£88,000 · BTL 7.8% · 29 May
GREEN
Critical
Section 21 abolished — now in force
No-fault evictions ended 1st May. All possession proceedings must use Section 8 grounds. Ground 1 (landlord wishes to sell) becomes available after 12 months. Ground 8 (2+ months rent arrears) remains the most-used mandatory ground. Court timelines: 4–6 months end-to-end.
→ New Tenancy Agreement (RRA Compliant)
Critical
Periodic tenancy deposit protection clarified
Deposit re-protection on periodic tenancies confirmed not required unless deposit amount changes or new tenant joins. Prescribed information must still be served on new tenancies. Penalties for non-compliance: up to 3× deposit value.
→ Section 8 Possession Grounds Reference
Important
Pet requests — reasonable refusal guidance published
Government guidance on what counts as a “reasonable” refusal of a pet request published this month. Insurance premium increases, freeholder restrictions, and HMO occupancy limits all explicitly named as acceptable grounds. Refusals must be in writing within 28 days of the request.
→ RRA Survival Kit
Info
EPC consultation response — Q3 timeline expected
Government response on EPC minimum standards now expected Q3 2026 (slipped from Q2). Industry consensus: Band C confirmed, £15,000 per property cap likely, 2030 deadline for existing tenancies probable.
→ EPC Upgrade Calculator
Reader question from David, Birmingham
“My tenant stopped paying in February. Section 21 is gone. What do I actually do?”
Nick’s Analysis

David, you’ve got more options than you think — and you need to act this week, not next month. Three months of arrears is the threshold where Ground 8 becomes available, and Ground 8 is mandatory: if the rent is two months in arrears at the date of the hearing AND at the date the notice was served, the court must order possession.

Step one: serve a Section 8 notice citing Grounds 8, 10, and 11 (the rent-arrears trio). Ground 8 is the mandatory one; 10 and 11 are discretionary backups. Two weeks’ notice period for Ground 8. Step two: if no response, issue proceedings in the County Court. Court fee £355. Step three: hearing typically 8–12 weeks after issue. Step four: if granted, possession order, then if needed, bailiffs.

End-to-end timeline realistically: 4–6 months from where you are today. Meanwhile, your tenant is accruing rent debt you may never recover. The harder question: would you accept a payment plan now and let them stay? If they’re otherwise decent, a written agreed plan over 18 months may be cheaper than possession proceedings plus six months of voids and re-let costs.

→ Serve Section 8 this week. Pursue possession in parallel with offering a written payment plan. Whichever resolves first wins.
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