Hackney Landlord and the Renters Rights Act 2025: What Changed

The Big Change: Section 21 Is Gone

The Renters' Rights Act received Royal Assent in 2025 and took full effect on 1 May 2026 — the same date Hackney's new selective and additional licensing schemes came into force. The headline change: section 21 "no-fault" evictions have been abolished. Every assured shorthold tenancy in England has automatically converted to a periodic assured tenancy.

For Hackney landlords, this means you can no longer issue a section 21 notice to end a tenancy without grounds. All possession claims must now go through section 8 of the Housing Act 1988, using one of the statutory grounds — rent arrears, anti-social behaviour, landlord wanting to sell or move in, and so on. The forms and notice periods have been updated to match.

Higher Civil Penalty Cap

The Act also raised the maximum civil financial penalty for housing offences — including operating an unlicensed property — from £30,000 to £40,000 per offence. Rent repayment order exposure was extended from 12 months to 24 months' rent.

For a Hackney landlord letting a flat at £2,000 per month without a licence, the combined worst-case exposure is a £40,000 civil penalty from the council plus a £48,000 rent repayment order from the tenant — nearly £90,000 for a single property.

The Licensing–Possession Connection

Licensing and possession rules are related, but a missing property licence does not by itself bar a landlord from serving a section 8 notice. The former licensing restriction applied to section 21 notices; the Renters' Rights Act abolished section 21 for assured tenancies from 1 May 2026.

A Temporary Exemption Notice or duly made licensing application addresses the separate unlicensed-operation offence. Under the Housing Act 2004, a duly made application is a defence to that offence while it remains effective; it is not a prerequisite for serving a section 8 notice.

In practical terms, an unlicensed landlord in Hackney may still seek possession on a valid section 8 ground, including serious rent arrears, but still faces the separate licensing penalties and rent repayment order exposure.

The PRS Database

The Renters' Rights Act also established the national Private Rented Sector (PRS) Database, which enters its primary compliance phase in late 2026 to early 2027. Registration on the PRS Database is a separate obligation from Hackney's local property licensing — holding a Hackney licence does not satisfy the database requirement, and vice versa. Landlords will need to comply with both.

What This Means for Hackney Landlords

The combination of abolished section 21, higher penalties, and the licensing–possession link makes property licensing non-optional in a way it arguably was not before. An unlicensed property in Hackney is not just a compliance risk — it is an unmanageable tenancy.

The Hackney landlord licensing guide covers the full licensing process alongside the Renters' Rights Act implications, including a compliance checklist that tracks both local licensing and national requirements.

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