Eviction disputes create mounting costs and delays for landlords, tenants and the courts

“Unfortunately, the number of landlords looking to sell their investments is exacerbating the lack of affordable rental housing, prompting tenants to challenge eviction notices because they can’t find anywhere else to live,” warns Mustafa Sidki, Contentious Construction Litigation Partner. “The pressures on both sides in the private rental sector are creating a perfect storm, which is leading to lengthy and costly litigation – and further pressure on a court system that is already struggling.

“Unless the economics of the private rented sector improve and more affordable rental homes become available, renters will struggle to find homes, landlords are going to face increasing costs as their tenants resist eviction and the courts will have to contend with a growing backlog.”

Government figures confirm that the number of accelerated landlord possession claims (which include Section 21 claims) in April to June 2026 was up 16% on the same period in 2025. A survey of landlords by Savills conducted in June reported that 11% had sold one or more of their properties.

Thackray Williams received a flurry of instructions from landlords intending to sell their properties looking to serve last-minute Section 21 ‘no fault’ eviction notices before they were abolished with the introduction of the RRA.

“Every one of these has been resisted by the tenants, who have refused to vacate, necessitating accelerated possession proceedings,” explains Sidki. “In turn, every accelerated possession claim has been challenged by the tenants – and in each case they are asking the courts to give them more time to find alternative accommodation.

“These challenges require full court hearings, increasing the costs that landlords are facing and the amount of time before they will be able to secure vacant possession of their properties, at the same time leaving renters in limbo.”

Additionally, Thackray Williams is now seeing an increase in enquires from tenants facing eviction as well as instructions from landlords to serve eviction notices under Section 8 of the Housing Act 1988 and possession proceedings generally, as landlords continue to seek to exit the market.

“The route to acquiring possession has changed with the implementation of the RRA, but the increasingly difficult economics of being a landlord haven’t,” comments Sidki, “so we’re continuing to see increased activity as landlords look to divest because their property investments are no longer commercially viable.

“As well as the reduced flexibility and increased administrative burden imposed by the RRA, they’re facing an impending 2% increase in tax on income from property, having already lost the ability to deduct full mortgage interest from rental income (under Section 24 of the Finance Act).

“Additional pressures include a new requirement for quarterly financial reporting under Making Tax Digital, alongside increased costs for maintenance, service charges, insurance premiums and local authority licensing fees.

“Many landlords are also facing new re-finance rates of 5-6% as their fixed-rate buy-to-let mortgages of 1-2% come to an end this year, and there’s uncertainty as to what the requirements to upgrade their properties to EPC C by 2030 under the Decent Homes Standard 2026 will mean in practice."

30% of the landlords surveyed by Savills said they were considerably more likely to consider disposing of their rental properties in the next 24 months (rising to 54% of mortgaged landlords), with 62% of respondents reporting they have become significantly less likely to buy another property.

“This is not simply a landlord issue or a tenant issue — it is a system-wide pressure point,” cautions Sidki. “Possession disputes are now exposing the strain across the whole rental market, from landlords reassessing whether they can afford to stay invested, to renters struggling to find homes, and courts being asked to absorb the fallout.”

MUSTAFA SIDKI IS AVAILABLE FOR INTERVIEW

Contact Siobhan Stirling M: 07542 603345, D: 020 8461 6187, E: siobhan.stirling@thackraywilliams.com